Updated 14 January 2026 at 12:14 IST
IOC Stock in Focus After Oil Discovery in Abu Dhabi
Indian Oil Corporation (IOC) has reported the discovery of unconventional oil resources in Abu Dhabi’s Onshore Block 1, where it operates through a joint venture with Bharat Petroleum’s upstream arm. The discovery follows successful testing of exploratory wells and marks a key milestone in IOC’s overseas exploration efforts, bringing its stock into focus amid investor interest in upstream developments.
Indian Oil Corporation has confirmed the presence of unconventional oil resources in Abu Dhabi’s Onshore Block 1, strengthening its overseas exploration and production portfolio and putting the company’s stock in focus.
The discovery was made through Urja Bharat Pte Ltd, a joint venture equally owned by Indian Oil Corporation and Bharat PetroResources Ltd, the upstream subsidiary of Bharat Petroleum Corporation Ltd (BPCL). The joint venture holds the exploration rights for the Abu Dhabi onshore block. The development comes at a time when global oil geopolitics are back in focus, with the United States under President Donald Trump seeking to influence oil flows from resource-rich countries such as Venezuela.
Exploratory Well Testing Shows Positive Results
According to disclosures, exploratory drilling and testing in the block led to the confirmation of unconventional hydrocarbons, following successful flow tests from the targeted reservoir. The results established the presence of light crude oil in tight formations, marking the first unconventional oil discovery by the Indian consortium in the block.
The Abu Dhabi Onshore Block 1 concession was awarded to the Indian joint venture in 2019 and covers a large onshore acreage in western Abu Dhabi. Since then, the partners have undertaken seismic surveys, drilling and appraisal activities as part of the exploration programme.
Part of IOC’s Global Upstream Strategy
The discovery adds to Indian Oil’s growing upstream footprint outside India. The company has been expanding its exploration and production interests globally as part of its long-term strategy to secure energy resources and diversify supply sources.
Indian Oil’s upstream business remains a relatively small but strategic component of its overall operations, which are otherwise dominated by refining and marketing. Overseas discoveries are seen as long-term value drivers, particularly as India seeks to enhance energy security through equity oil and gas.
Appraisal and Development
Following the discovery, the joint venture is expected to move into further appraisal to assess the size, recoverability and commercial viability of the unconventional oil resources. Development timelines will depend on appraisal outcomes, technology deployment and approvals from Abu Dhabi authorities.
Unconventional oil development typically requires advanced drilling and completion techniques and involves higher upfront capital expenditure compared with conventional fields.
IOC Stock
Indian Oil Corporation shares were trading around ₹157–158 apiece on the NSE in intraday trade, keeping the stock in focus following news of the Abu Dhabi oil discovery. The stock moved within a day’s range of roughly ₹155.5 to ₹159.5, reflecting modest volatility amid broader market cues.
On a longer-term basis, IOC has traded between about ₹110 and ₹175 over the past 52 weeks, underlining a strong rebound from last year’s lows. At current levels, the company’s market capitalisation stands above ₹2.2 lakh crore, placing it among India’s most valuable listed energy firms.
Indian Oil continues to attract income-focused investors, supported by its regular dividend payouts, while valuation metrics indicate the stock is trading at single-digit earnings multiples, lower than many global peers in the energy space.
Published By : Shourya Jha
Published On: 14 January 2026 at 12:02 IST