ABU DHABI – A consortium led by state-owned Pakistan Petroleum Ltd. will invest about $305 million to find crude and natural gas in the UAE’s Persian Gulf waters, Abu Dhabi National Oil Co. said Tuesday.
It’s for the first time the UAE’s biggest natural resources producer granted a concession to firms from the South Asian country while the joint venture with Pakistani energy reflects the deep-rooted bilateral ties between the UAE and Pakistan.
The group led by Pakistan Petroleum Ltd (PPL) includes Mari Petroleum Co Ltd (MPCL), Oil and Gas Development Co Ltd (OGDCL), and Government Holdings (Private) Ltd (GHPL) which were awarded the contract in adnoc’s second competitive block bid round.
Abu Dhabi National Oil Company (ADNOC) signs historic exploration concession agreement with consortium of 4 Pakistani companies, Pakistan Petroleum Ltd. (PPL) Mari Petroleum Company Ltd. (MPCL), Oil and Gas Development Company Ltd. (OGDCL) and Government Holdings (Pvt) Ltd GHPL pic.twitter.com/QAdI6wQlls
— UAE Embassy PK (@uaeembassyisb) August 31, 2021
UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of Adnoc, and Moin Raza Khan, managing director and CEO of PPL, signed the agreement.
Energy Minister Hammad Azhar also shared the development in a post on his official Twitter handle. “We are proud to announce that a consortium of four Pakistani companies under the ministry of energy have been awarded exploration rights to a prolific offshore block in Abu-Dhabi,” he wrote.
We are proud to announce that a consortium of four Pakistani companies under ministry of energy have been awarded exploration rights to a prolific offshore block in Abu-Dhabi. This is a site that is considered rich in oil and gas and I wish these companies best of luck.
— Hammad Azhar (@Hammad_Azhar) August 31, 2021
Reports cited that Pakistani oil giants will invest Dh1.12 billion ($304.7 million) during the exploration phase in Abu Dhabi concession that covers an offshore area of 6,223 square kilometers and is located 100 kilometres northeast of the city.
Minister of State in UAE and adnoc CEO Dr. Al Jaber said this historic exploration concession award marks a new chapter of energy cooperation in the 50-year old relationship between the two countries.
“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. We are delighted to partner with Pakistan Petroleum Limited and the other members of the consortium on Offshore Block 5”, he added.
Meanwhile, a statement issued by UAE’s state-owned oil company cited “The award ‘underscores ADNOC’s expanded approach to strategic partnerships, including those who can provide access to key growth markets for the company’s crude oil and products”.
It further added, “Under the terms of the agreement, the consortium will hold a 100pc 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 and gas opportunities in the block that covers an offshore area of 6,223 square kilometres and is located 100 kilometres northeast of Abu Dhabi city”.
On the other hand, CEO PPL Raza Khan said the consortium is delighted to be selected for the concession award of Abu Dhabi’s Offshore Block-5.“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”, he said.
