PPL-led E&P consortium forms new firm in Abu Dhabi

Javed MirzaWeb Editor

24th Jun, 2021. 05:01 pm

KARACHI: The Pakistan Petroleum Limited (PPL)-led consortium of companies has incorporated a special purpose vehicle (SPV) in Abu Dhabi, a prerequisite to qualify for the award for the exploration block, a bourse filing reported on Thursday.

A consortium comprising Pakistan’s leading exploration and production companies, including Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and the Government Holdings Pvt Ltd (GHPL) submitted a bid for one of the blocks offered in Abu Dhabi Bid Round 2019.

The consortium has incorporated a special purpose vehicle (SPV) in Abu Dhabi or Pakistan, which is one of the conditions precedent to qualify for the award. MPCL, OGDC, PPL and GHPL will each have 25 per cent stake in the new company.

“The award shall be granted by the Supreme Council for Finance and Economic Affairs (SCFEA) of the Emirates of Abu Dhabi, and no decision, in this regard, has so far been made,” the MPCL noted.
“In case the block is not awarded to the consortium, the SPV will be dissolved,” it said. Subject to the consortium being declared successful, all the partners would invest up to $100 million each in the new company.

Five blocks have been announced for commercially competitive bidding to this 2019 round, three of which are offshore and two are onshore. Following the bid round, the successful bidders will enter agreements provided defined targets are achieved in the exploration phase and give them the opportunity to then develop and produce any discoveries under the terms that will be set out in the bidding package.

Based on the existing data from the detailed petroleum system studies, seismic surveys, log files and core samples from appraisal wells, the estimates suggest these new blocks could hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas.

Some of the blocks had already made discoveries, and within the combined area, there are 290 targeted reservoirs from 92 prospects and leads. In addition to the country’s conventional potential, one of the offered blocks is expected to contain significant unconventional resources.

Abu Dhabi’s first competitive block bid round was concluded in March 2019, which attracted major international players. The successful bidders included a consortium of Bharat Petroleum Company and Indian Oil Corporation Limited. Besides, other international companies, Eni (Italy), PTTEP (Thailand), Occidental Petroleum (USA) and Inpex (Japan) also won the blocks.

Abu Dhabi’s second bid round provides a major opportunity for the consortium of Pakistan’s leading E&P companies to join the world renowned Abu Dhabi National Oil Company (Adnoc) and unlocking untapped resources in one of the world’s largest hydrocarbon super-basins by investing in a trusted and reliable business environment.

Adsense 300 x 250