ISLAMABAD – In a first, Pakistani state owned companies consortium toparticipate in offshore exploration block bidding in UAE.
The Economic Coordination Committee (ECC) is sending a consortium ofPakistan’s state-owned oil and gas companies to participate in a biddingprocess for an offshore exploration block at Abu Dhabi.
Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of theUnited Arab Emirates (UAE), will organize the bidding in which companiesfrom all over the globe will participate to win the licenses of offshoreoil and gas exploration blocks.
Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL),Mari Petroleum Company Limited (MPCL) and Government Holding PrivateLimited (GHPL) make up the consortium that is expected to representPakistan later this month. Earlier, the petroleum division sent a summaryto 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, andOGDC 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 canwin the rights.
Pakistan’s state-owned oil and gas companies are hopeful that they canprove their mettle on a global scale by winning the exploration rights ofan offshore block. The blocks available for bidding are believed to have500 million barrels of oil according to the output of the existing nearbyoilfields.
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The successful bidders will sign an agreement with ADNOC that will partnerthe bidders at a 60% interest. The bidders will then be granted the rightto explore the blocks for a limited time and capitalize on the discoveries.
Officials at the petroleum division believe that Pakistan can win theexploration license at the bidding ceremony. The oil produced through theseblocks will not only bring foreign exchange to Pakistan, but it will alsohelp the country solidify its image as a major contender in the global oiland gas industry.
UAE is the 7th biggest exporter of oil in the world with 96% of the oilconcentrated around Abu Dhabi. According to ADNOC, there are 5 explorationblocks available for bidding. Three blocks are offshore while the remainingare onshore.
*Via: Express Tribunelink*
