ISLAMABAD, Aug 31 (APP): Minister for Energy Hammad Azhar on Tuesday said that a consortium of four Pakistani companies under the Energy Ministry had been awarded exploration rights to a prolific offshore block in Abu-Dhabi.
“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. 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.
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
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 kilometers, is located 100 kilometers north east of Abu Dhabi city for which the exploration concession agreement was signed today,” the OGDCL said.
The government of United Arab Emirates (UAE) was represented by Minister of Industry and Advanced Technology and Managing Director and Group CEO of Abu Dhabi National Oil Company (ADNOC) Dr Sultan Ahmed Al Jaber, and the consortium by Managing Director PPL Moin Raza Khan .
Energy Minister Hammad Azhar in his message 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 towards bridging the energy supply and demand gap.”
This is the Emirate’s second competitive bidding round organized by ADNOC for the
exploration, development and production of oil and gas. “The historic agreement
builds on the deep-rooted bilateral relationship between the UAE and the
Islamic Republic of Pakistan,” the news release said.
Speaking on the occasion, OGDCL MD Shahid Salim Khan said “OGDCL has embarked on its internationalization 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 percent stake in the exploration phase for exploration, 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 would have the right to a production concession to develop and
produce commercial discoveries.
The ADNOC would have an option to acquire a 60 percent stake during the production phase of the concession. The term of the production phase is for 35 years from the commencement of the exploration phase.
