Award of Offshore Block 5 in Abu Dhabi to a Pakistani Consortium
Mari Petroleum along with consortium of Pakistani companies, Oil and Gas Development Company Limited (OGDCL) and Government Holdings (Private) Limited (GHPL), led by Pakistan Petroleum Limited (PPL), has been awarded Offshore Block 5 in Abu Dhabi’s second competitive exploration block bid round. Offshore Block 5 covers an area of 6,223 square kilometers and is located 100 kilometers north east of Abu Dhabi city. The consortium is led by PPL.
The consortium companies have established an independent company namely Pakistan International Oil Limited (PIOL) at Abu Dhabi Global Market with each consortium company having a 25% equity stake in PIOL. The exploration concession agreement has been signed between ADNOC and PIOL on August 31, 2021.
The award marks the first time Pakistani companies invest in and explore for oil and gas in an Abu Dhabi concession as well as the first time ADNOC partners with Pakistani energy companies.
Under the terms of the agreement, PIOL will hold a 100 percent stake in the exploration phase for exploration and appraisal drilling and to appraise oil and gas opportunities in the block.
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.
MPCL’s participation in Offshore Block 5 is in line with our vision of MPCL becoming an international integrated energy company and it is also aligned with the company’s growth strategy of enhancing collaboration with other E&P players and focusing on improving our reserves replacement ratio.