ADNOC signed a historic concession agreement with 4 Pakistani companies

Abu Dhabi, September 1 - Neftegaz.RU. The UAE state-owned ADNOC announced on August 31 the signing of a historic exploration concession agreement, granting the exploration rights for Abu Dhabi’s Offshore Block 5 oil field to a consortium of 4 Pakistani companies.
The consortium comprised of:

• Mari Petroleum Company Limited
• Pakistan Petroleum Limited (PPL) (Operator)
• Oil & Gas Development Company Limited (OGDCL)
• Government Holdings (Private) Limited (GHPL)

The award marks the 1^st time Pakistani companies invest in and explore for oil & gas in an Abu Dhabi concession as well as the 1^st time ADNOC partners with Pakistani energy companies.
The 2^nd competitive block bid round was launched in 2019 and the award to the Pakistani consortium concludes the round.

CEO of ADNOC Ahmed Al Jaber said:

• This historic exploration concession award marks a new chapter of energy cooperation in the 50-year old UAE-Pakistan relationship
• The consortium was selected as part of Abu Dhabi’s block bid round where we have once again reinforced our approach to strategic partnerships that contribute the right combination of market access, capital, best-in-class expertise or advanced technology
• We are very optimistic about the potential to unlock significant value with all our partners in this 2^nd competitive block bid round as we continue to accelerate the exploration and development of Abu Dhabi’s untapped resources

Moin Raza Khan, Managing Director and CEO of PPL:

• 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

The consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil & gas opportunities in the block that covers an offshore area of 6,223 sq. km and is located 100 km north east of Abu Dhabi city.

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.
The UAE is OPEC's 3^rd-largest oil producer, accounting for 5.6% of all proven reserves worldwide.

Author: Elena Alifirova