Abu Dhabi has awarded an onshore oil and gas block to Urja Bharat, a joint venture between Indian state-run energy companies Bharat Petroleum and Indian Oil, in a move to strengthen energy ties between the UAE and India. The Supreme Council for Financial and Economic Affairs (SCFEA) granted production rights for Onshore Block 1 in Al Ruwais following the successful completion of the exploration phase that began in 2019, as reported by the Abu Dhabi Media Office.
Initial exploration in the 38-square-kilometer Al Ruwais area yielded promising results, leading to the production concession award. Jassem Al Zaabi, secretary general of SCFEA, emphasized that the concession reflects Abu Dhabi’s commitment to advancing its hydrocarbon sector and ensuring the long-term economic prosperity of the emirate. “This concession is part of our broader strategy to enhance the resilience and sustainability of our economy,” he said.
The award follows a series of significant agreements signed between India and the UAE, including deals on crude oil storage, long-term liquefied natural gas (LNG) supply, and cooperation in the civil nuclear energy sector.
Abu Dhabi National Oil Company (Adnoc) signed a preliminary 15-year agreement with Indian Oil to supply 1 million tonnes of LNG annually. By 2029, Indian Oil is set to become Adnoc’s largest LNG buyer, purchasing 2.2 million tonnes per year—1.2 million tonnes from Das Island operations and 1 million tonnes from Ruwais LNG. Adnoc also extended its oil storage agreement with the Indian Strategic Petroleum Reserve.
These developments followed a meeting between Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, and Indian Prime Minister Narendra Modi in New Delhi, underscoring the growing energy partnership between the two nations.
India, the world’s third-largest crude importer, is projected to be the leading source of oil demand growth through 2030, according to the International Energy Agency (IEA). Over the next three decades, the country is expected to experience the largest energy demand increase globally, driven by rapid industrialization and urbanization.
The UAE, one of the world’s largest oil producers, holds more than 95% of its roughly 100 billion barrels of proven oil reserves in Abu Dhabi.