Adnoc awards offshore contract to Pakistani consortium for $304.7m
The Abu Dhabi National Oil Company (ADNOC) has announced the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 5 to a consortium of four Pakistani companies.
Under the agreement, the Pakistan consortium will hold a 100 per cent stake in the exploration phase, investing up to $304.7 million (AED1.12 billion), making it the first-ever deal to energy companies from Pakistan.
The value of the contract covers exploration, appraisal drilling and a participation fee.
“This historic exploration concession award marks a new chapter of energy cooperation in the 50-year old UAE-Pakistan relationship,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.
“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.”
The companies consist of Pakistan Petroleum Limited (PPL), which is leading the consortium, as well as Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL). PPL operates 15 producing fields across Pakistan and contributes over 20 per cent of the country’s total natural gas supplies.
The award, the first granted to a Pakistani consortium, is part of Abu Dhabi’s second competitive bid round. The term of the contract is for 35 years from the beginning of exploration, with the “potential” to create significant inflows of in-country value for the UAE economy, Adnoc said.