Page 7 - AsianOil Week 29 2021

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Ltd (GHPL), with each holding an equal 25% With Onshore Block 5 and Offshore Blocks 3
share. and 4 already apportioned, the Pakistani consor-
The firms have now also approved an invest- tium’s interest is presumably in either Onshore
ment of up to $100mn each in Pakistan Interna- Block 2 or Offshore Block 5, which covers an area
tional Oil, which, according to documents seen north of the 50bn barrel Upper Zakum oilfield.
by NewsBase, was registered on the Abu Dhabi In February, ADNOC awarded Offshore
Global Market (ADGM) last week. The firm has Block 4 to the local subsidiary of Japan’s Cosmo
been set up for the specific purpose of carrying Energy, which is the majority owner of Abu
out exploration and production on one of the Dhabi Oil Co. (ADCO) and is predominantly
blocks. known as a refining specialist. Cosmo took a
The funds will be invested over a five-year 100% stake in the exploration phase and will
period, with Mari noting that it would seek hold rights to the development and production
shareholder approval for subsequent funding, as phases of any successful commercial discov-
required. In its filing, Mari Petroleum said: “In ery, at which point ADNOC has the option to
case the block is not awarded to the consortium, take its customary 60% share. The contract was
the NewCo shall be dissolved.” signed for a term of 35 years with Cosmo agree-
However, with the new company formed, ing to spend up to $145mn on exploration and
the guarantees in place and investment agreed, appraisal drilling, including a participation fee,
the consortium appears close to securing a across the 4,865-square km offshore concession.
concession. The deal follows similar agreements in
The blocks included in the second round December with US-based Occidental Petro-
cover large areas throughout Abu Dhabi, cover- leum for onshore Block 5 and with a consortium
ing a total acreage of 34,000 square km. Onshore of Italy’s Eni and Thailand’s PTT Exploration and
Block 2 is in the south-west, bordering Saudi Production (PTTEP) for Offshore Block 3.
Arabia, while Onshore Block 5 borders Oman in As with those agreements, ADNOC noted
the south-east. Offshore Blocks 3, 4 and 5 cover that Cosmo would “leverage and contribute
the majority of Abu Dhabi’s offshore area. financially and technically” to the ongoing mega
According to ADNOC: “Some of the blocks seismic survey currently being carried out by
already have discoveries, and within the com- China National Petroleum Corp. (CNPC) geo-
bined area there are 290 targeted reservoirs from physical specialist subsidiary BGP. The scope of
92 prospects and leads. In addition to the coun- the 3D onshore and offshore survey was recently
try’s conventional potential, one of the offered expanded from around 53,000 square km to
blocks is expected to contain significant uncon- 82,000 square km, taking the total value of the
ventional resources.” contract to $2.12bn.™

Week 29 22•July•2021 www. NEWSBASE .com P7