KARACHI: Pakistan on Monday allowed a consortium led by state-owned Pakistan Petroleum Limited (PPL) to participate in bidding for an Abu Dhabi block.
PPL will act as the consortium’s operator, while Oil and Gas Development Company (OGDCL), Mari Petroleum Company Limited (MPCL), and Government Holding Private Limited (GHPL) will be its partners.
The Economic Coordination Committee (ECC) of the cabinet allowed the consortium to participate in Abu Dhabi National Oil Company’s (ADNOC) competitive bid round for new licenses for oil and gas exploration, and to make initial investments with their own resources, while any additional financial requirements shall be met by the government, the Ministry of Finance said in a statement.
In April 2018, ADNOC launched its first competitive bid round for the exploration, development, and production of oil and gas in Abu Dhabi. Following the successful conclusion of the debut round, the company is launching a second licensing bid round on Tuesday for another set of major onshore and offshore blocks across the emirate, ADNOC said on its website.
Five blocks – three offshore and two onshore – have been announced for the second round.
“The approval for bidding was given in view of enhancing the technical skills of the consortium, which is also working in Pakistan and for bringing the additional foreign exchange to the country,” the ministry’s statement read.
The UAE is the world’s seventh-largest oil producer, with about 96 percent of its reserves within the emirate of Abu Dhabi.
While Pakistan is participating in the bidding process for the first time, experts say competition will be tough, as the world’s exploration giants are vying for the venture. PPL has experience in overseas exploration, with its operations in Iraq.