In a key development for Pakistan’s energy sector, a consortium of leading Pakistani oil and gas exploration companies has formally entered into an international partnership for hydrocarbon exploration and production in the United Arab Emirates (UAE).
“We are pleased to announce the signing and execution of a Production Concession Agreement (PCA), for the development of Offshore Block 5, Abu Dhabi,” Mari Energies Limited (MARI) disclosed in a notice to the Pakistan Stock Exchange (PSX).
The listed energy company informed that the PCA has been signed between the Supreme Council for Financial and Economic Affairs (SCFEA) on behalf of the Government of the Emirate of Abu Dhabi, Abu Dhabi National Oil Company (ADNOC) P.J.S.C, and Pakistan International Oil Limited (PIOL).
PIOL is a special-purpose vehicle incorporated by a consortium comprising Pakistan Petroleum Limited, Oil and Gas Development Company Limited, Mari Energies Limited, and Government Holdings (Private) Limited, with each partner holding a 25% share.
“Upon execution of the PCA, the partnership will be between ADNOC and PIOL with PIOL holding 40% participating interest,” read the notice.
Experts say this agreement represents a milestone for Pakistani energy companies operating abroad.
In 2021, PIOL was awarded offshore Block 5 in Abu Dhabi’s second competitive exploration block bid round.
The offshore Block 5 covers an area of 6,223 square kilometres and is located 100 kilometres northeast of Abu Dhabi city.
At the time, the consortium noted that the development provides an opportunity to join the world-renowned Abu Dhabi National Oil Company (ADNOC) and unlock untapped resources in one of the world’s largest hydrocarbon super-basins by investing in a trusted and reliable business environment.
