The Economic Coordination Committee (ECC) is sending a consortium of Pakistan’s state-owned oil and gas companies to participate in a bidding process for an offshore exploration block at Abu Dhabi.
Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of the United Arab Emirates (UAE), will organize the bidding in which companies from all over the globe will participate to win the licenses of offshore oil and gas exploration blocks.
Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Mari Petroleum Company Limited (MPCL) and Government Holding Private Limited (GHPL) make up the consortium that is expected to represent Pakistan later this month. Earlier, the petroleum division sent a summary to ECC seeking approval for the consortium.
In case Pakistan wins the exploration license of an offshore block, Pakistan Petroleum Limited (PPL) will lead the consortium. PPL, MPCL, and OGDC will each have a share of 30% while GHPL will own 10% of the block. Pakistan will have to invest millions of dollars in the project if it can win the rights.
Pakistan’s state-owned oil and gas companies are hopeful that they can prove their mettle on a global scale by winning the exploration rights of an offshore block. The blocks available for bidding are believed to have 500 million barrels of oil according to the output of the existing nearby oilfields.
The successful bidders will sign an agreement with ADNOC that will partner the bidders at a 60% interest. The bidders will then be granted the right to explore the blocks for a limited time and capitalize on the discoveries.
Officials at the petroleum division believe that Pakistan can win the exploration license at the bidding ceremony. The oil produced through these blocks will not only bring foreign exchange to Pakistan, but it will also help the country solidify its image as a major contender in the global oil and gas industry.
UAE is the 7th biggest exporter of oil in the world with 96% of the oil concentrated around Abu Dhabi. According to ADNOC, there are 5 exploration blocks available for bidding. Three blocks are offshore while the remaining are onshore.
Via: Express Tribune