UAE - Mubasher: The Abu Dhabi National Oil Company (ADNOC) has signed a concession agreement to award a consortium of four Pakistani companies the exploration rights for Abu Dhabi’s Offshore Block 5.
The Pakistani companies comprise Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL), according to a press release on Tuesday.
The transaction marks the first time for Pakistani companies to invest in and explore oil and gas Abu Dhabi’s concession and ADNOC's first partnership with Pakistani energy companies.
Under the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million (AED 1.12 billion) in exploring and drilling the block, which spans over an offshore area of 6,223 square kilometers.
Upon the discovery of oil and gas in the block, the consortium will have the right to develop and produce the commercial discoveries under a 35-year term, and ADNOC is able to hold a 60% stake in the production phase.
ADNOC launched the second competitive block bid round in 2019, offering a number of major onshore and offshore blocks.
The UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, Sultan Ahmed Al Jaber, said: "We are very optimistic about the potential to unlock significant value with all our partners in this second competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources, in line with the Leadership’s wise directives."
Meanwhile, the Managing Director and CEO of PPL, Moin Raza Khan, commented: "This award is not only a watershed moment for Pakistan and the Emirate of Abu Dhabi towards bilateral energy cooperation and economic links but also offers an opportunity to strengthen strategic cooperation with ADNOC to share technical know-how and expertise."
