Offshore staff
ABU DHABI, UAE – ADNOC has awarded a consortium of four Pakistani companies – Pakistan Petroleum Ltd. (PPL), Mari Petroleum Co. Ltd., Oil and Gas Development Co. Ltd., and Government Holdings (Private) Ltd. – offshore block 5 in Abu Dhabi’s second competitive bid round. The consortium is led by PPL.
According to ADNOC, the award marks the first time Pakistani companies invest in and explore for oil and gas in an Abu Dhabi concession. It is also the first time ADNOC partners with Pakistani energy companies.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, said: “This historic exploration concession award marks a new chapter of energy cooperation in the 50-year-old UAE-Pakistan relationship. It represents an important platform upon which we can drive win-win opportunities to support Pakistan’s energy security and further strengthen the strategic and economic ties between our two countries.”
Under the terms of the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million (AED1.12 billion) toward exploration and appraisal drilling.
Located 100 km (62 mi) northeast of Abu Dhabi city, block 5 covers an area of 6,223 sq km (2,403 sq mi).
Following a commercial discovery, the consortium will have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the start of the exploration phase.
In addition, the consortium leverage and contribute financially and technically to ADNOC’s mega seismic survey.
08/31/2021
