Bharat Petroleum Corporation (BPCL) said its subsidiary along with Indian Oil Corporation (IOC) has been awarded a production concession by The Supreme Council for Financial and Economic Affairs (SCFEA) in Abu Dhabi.

BPCL said the production concession agreement follows the award of the exploration and production concession to Urja Bharat Pte Limited (UBPL) in March 2019, and the successful completion of the exploration phase.

UBPL is a 50:50 Special Purpose Vehicle (SPV) of BPCL and IOC. The concession agreement covers a total area of up to 6,162 square kilometres, offering UBPL 100 per cent concession rights. The area includes conventional undeveloped oil and gas resources, BPCL said.

“Initial exploration efforts have yielded positive results in Onshore Block 1, specifically within the 38 square kilometres Ruwais area,” the statement added.

BPCL added the company invested nearly USD 164 million during the exploration phase.