Pakistani companies win offshore block in UAE

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United Arab Emirates (UAE) has formally awarded the offshore block to Pakistani companies for crude oil and gas exploration.

In a notice sent to Pakistan Stock Exchange Limited Stock Exchange, Pakistan Petroleum Limited (PPL) said Abu Dhabi had awarded offshore block 5 to PPL-led consortium companies. Now, Pakistani companies will be able to make efforts for crude oil and gas exploration in UAE.

Pursuant to Rule 5.6.1 of your Rules, we hereby notify that a Pakistan Petroleum Limited (PPL)-led consortium has been awarded Offshore Block 5 in Abu Dhabi’s second competitive exploration block bid round, PPL said.

Besides PPL, the consortium comprises three major Pakistani E&P companies: Oil and Gas Development Company Limited (OGDCL), Mari Petroleum Company Limited (MPCL), and Government Holdings (Private) Limited (GHPL).

Offshore Block 5 covers an area of 6,223 square kilometers and is located 100 kilometers northeast of Abu Dhabi city. To this end, the consortium companies have established an independent company viz., Pakistan International Oil Limited (PIOL) at Abu Dhabi Global Market with each consortium company having a 25% equity stake in PIOL.

The United Arab Emirates (UAE) 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 Mr.Moin Raza Khan, MD/CEO of PPL, signed exploration concession agreement on behalf of PIOL.

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.

A consortium of Pakistani companies had earlier participated in offshore drilling in Pakistan in cooperation of ENI and US energy giant ExxonMobil.

Though this effort did not yield results Pakistani companies have acquired some experience in offshore drilling.

Pakistani companies will set up a joint venture company in UAE to participate in offshore drilling for crude oil and gas exploration.

This will be a good venture for Pakistani companies as they would be exploring oil and gas outside Pakistan.

Earlier, PPPL had made efforts to explore oil and gas in Iraq and Yemen. However, it did not achieve success so far.

The consortium comprises Mari Petroleum Company Limited and three other major Pakistani E&P companies: Pakistan Petroleum Limited (PPL) (Operator), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited(GHPL).

Offshore Block 5 covers an area of 6,223 square kilometers and is located 100 kilometers northeast of Abu Dhabi city.

To this end, the consortium companies have established an independent company viz., Pakistan International Oil Limited (PIOL) at Abu Dhabi Global Market with each consortium company having a 25% equity stake in PIOL.