A consortium of four Pakistani companies under the energy ministry has been awarded exploration rights to a prolific offshore block in Abu-Dhabi, said Minister for Energy Hammad Azhar on Tuesday.
“This is a site that is considered rich in oil and gas and I wish these companies best of luck,” the minister said in a tweet.
Meanwhile, Oil and Gas Development Company Limited (OGDCL), in a news release, said the consortium, comprising OGDCL, Mari Petroleum Company Limited (MPCL), Government Holdings (Private) Limited (GHPL) and Pakistan Petroleum Limited (PPL) (Operator), had been awarded the offshore Exploration and Production (E&P) Block 5 in Abu Dhabi’s second competitive exploration block’s bid round.
“The block 5, covering an area of 6,223 square kilometres, is located 100 kilometres north-east of Abu Dhabi city for which the exploration concession agreement was signed Tuesday,” the OGDCL said.
Azhar said, “While Pakistan and UAE share long and friendly bilateral relations, this award is a new beginning for both on the energy front. As Pakistan addresses escalating energy demand in the country, such milestones for energy cooperation will surely assist the country in bridging the energy supply and demand gap.”
This is the Emirate’s second competitive bidding round organised by ADNOC for the exploration, development and production of oil and gas.
Speaking on the occasion, OGDCL MD Shahid Salim Khan said, “OGDCL has embarked on its internationalisation journey in line with its growth-driven business strategy. Participation in Abu Dhabi’s Offshore Block 5 is a manifestation of the company’s commitment to augment its exploration and production portfolio and improve its reserves replacement ratio.”
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.
Under the terms of the agreement, the consortium would hold a 100% stake in the exploration phase for exploration, appraisal drilling and “to appraise oil and gas opportunities in the block”.
Published in The Express Tribune, September 1st, 2021.
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