Pakistani consortium wins exploration rights for offshore block in Abu Dhabi

• The offshore Block 5 covers an area of 6,223 square kilometers and is located 100 kilometers north-east of Abu Dhabi city.
• The consortium comprises Mari Petroleum Company Limited (MPCL), OGDCL, Government Holdings (Private) Limited (GHPL) and PPL.
• Minister for Energy says the award is a new beginning for Pakistan and UAE on the energy front.

KARACHI: In what is being considered a major development, a consortium of four Pakistani companies has been awarded exploration rights to a prolific offshore block in Abu-Dhabi.

According to a report published in The News, the Pakistan Petroleum Limited (PPL)-led consortium Tuesday confirmed that it had signed an exploration concession agreement with the Abu Dhabi National Oil Company (ADNOC) in the emirate’s second competitive block bid round.

The offshore Block 5 covers an area of 6,223 square kilometers and is located 100 kilometers north-east of Abu Dhabi city.

The consortium comprises Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL) and Government Holdings (Private) Limited (GHPL) and PPL. The PPL is the operator during the exploration phase.

The consortium will hold a 100% stake in the exploration phase for exploration and appraisal drilling and to appraise oil and gas opportunities in the block.

"In case of a successful commercial discovery during the exploration phase, the consortium will have the right to a production concession to develop and produce commercial discoveries." a statement said. "The ADNOC will have an option to acquire a 605 stake during the production phase of the concession."

Term of production phase

The term of the production phase is 35 years from the commencement of the exploration phase.

Reuters quoting a statement issued by ADNOC reported that the group is expected to invest up to $304.7 million, including a participation fee.

It was the Emirate’s second competitive bidding round organized by ADNOC for the exploration, development and production of oil and gas.

The exploration concession agreement was signed by Moin Raza Khan, MD & CEO of PPL and the United Arab Emirates (UAE) Minister of Industry and Advanced Technology and Managing Director and Group CEO of Abu Dhabi National Oil Company (ADNOC), Dr. Sultan Ahmed Al Jaber.

‘New beginning for Pakistan and UAE on energy front’

Hammad Azhar, Minister for Energy said the award is a new beginning for Pakistan and UAE on the energy front.

"As Pakistan addresses escalating energy demand in the country, such milestones for energy cooperation will surely assist the country towards bridging the energy supply and demand gap.”

PPL's Khan said the 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.

"We are particularly excited that this consortium comprises the ‘big four’ national exploration and production companies that are fully geared to support ADNOC and the Emirate of Abu Dhabi in reinforcing its leading position in the global energy sector," he said. 

The concession is the first opportunity for Pakistani E&P companies to explore, appraise and develop oil and gas resources in Abu Dhabi

Shahid Salim Khan, MD and CEO OGDCL said participation in Abu Dhabi’s offshore Block 5 is a manifestation of the company’s commitment to augment its exploration and production portfolio and improve its reserves replacement ratio.