A Pakistani consortium has been allocate obtain rights in AbuDhabi for Offshore Block National Oil Company (ADNOC) at the cost of $304.7 million, indicates the first agreement with the South Asian country’s energy companies.
In addition to Pakistan Petroleum Limited (PPL), which is the operator during the obtain phase, the consortium consists of three major Pakistani E&P companies: Oil and Gas Development Company Limited (OGDCL), Mari Petroleum Company Limited ( MPCL) and Government Holdings (Private Limited) (GHPL).
Under the terms of the agreement, the Pakistan consortium will hold a 100 percent stake in the exploration phase, investing up to Dh1.12 billion (equivalent to $304.7 million) towards exploration and appraisal for drilling and including a participation fee. This will be to explore and appraise oil and gas opportunities in the block that cover an offshore area of 6,223 square kilometers and are located 100 kilometers northeast of Abu Dhabi city.
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. ADNOC will have an option to acquire a 60 percent stake during the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase.
This concession award is the first opportunity for Pakistani E&P companies to explore, appraise and develop oil and gas resources in Abu Dhabi, along with establishing a strategic partnership with ADNOC.
The exploration concession agreement was signed by MD and CEO PPL, Moin Raza Khan, on behalf of the consortium, 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), H.E. Dr. Sultan Ahmed Al Jaber, on August 31, 2021.