Page 7 - AsianOil Week 26 2021

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beneficiary of ITFC financing and that the insti- The $4.5bn loan agreement is not the first of its size
tution would continue to support Pakistan’s between ITFC and Pakistan either, with both parties
financial needs relating to its oil and gas imports. having signed such a deal April 2018 for the 2018-
The newspaper’s sources said the interest rate 2020 period. That facility saw the institution extend
of this new facility would be lower than that of $386mn to the South Asian country last year.
the existing loan – reportedly set at LIBOR+ Pakistan reportedly spent $4.5bn on oil
2.3% – given the “substantial” liquidity surplus product imports in the first 11 months of fiscal
of banks in the United Arab Emirates (UAE) and year 2020-2021, as well as $2.5bn on LNG and
Saudi Arabia. another $2.5bn on crude oil.™

Pakistani firms to form

SPV to bid for UAE acreage

FINANCE & A group of four Pakistan-based oil and gas In February, ADNOC awarded Offshore
INVESTMENT companies have formed a consortium to bid for Block 4 to the local subsidiary of Japan’s Cosmo
an exploration block advertised by Abu Dhabi Energy, which is the majority owner of Abu
National Oil Co. (ADNOC) in its second com- Dhabi Oil Co. (ADCO) and is predominantly
petitive bid round in 2019. known as a refining specialist. Cosmo took a
Islamabad-based Mari Petroleum submitted 100% stake in the exploration phase and will
a filing to the local stock exchange which said: “A hold rights to the development and production
consortium comprising Mari Petroleum Com- phases of any successful commercial discov-
pany Ltd, Pakistan Petroleum Ltd, Oil and Gas ery, at which point ADNOC has the option to
Development Company Ltd and Government take its customary 60% share. The contract was
Holding (Private) Ltd, shall incorporate a com- signed for a term of 35 years, with Cosmo agree-
pany/special purpose vehicle (a “NewCo”), in ing to spend up to $145mn on exploration and
Abu Dhabi Global Market or Pakistan, with each appraisal drilling, including a participation fee,
consortium partner having 25% shareholding in across the 4,865-square km offshore concession.
the NewCo.” The deal follows similar agreements in
It added: “The award shall be granted by the December with US-based Occidental Petro-
Supreme Council for Finance and Economic leum for onshore Block 5 and with a consortium
Affairs (SCFEA) of the Emirate of Abu Dhabi, of Italy’s Eni and Thailand’s PTT Exploration and
and that no decision in this regard has so far Production (PTTEP) for Offshore Block 3.
been made. In case the block is not awarded to As with those agreements, ADNOC noted
the consortium, the NewCo shall be dissolved.” that Cosmo would “leverage and contribute
The blocks included in the second round financially and technically” to the ongoing mega
cover large areas throughout Abu Dhabi, cover- seismic survey currently being carried out by
ing a total acreage of 34,000 square km. Onshore China National Petroleum Corp. (CNPC) geo-
Block 2 is in the south-west, bordering Saudi physical specialist subsidiary BGP. The scope of
Arabia, while Onshore Block 5 borders Oman in the 3D onshore and offshore survey was recently
the south-east. Offshore Blocks 3, 4 and 5 cover expanded from around 53,000 square km to
the majority of Abu Dhabi’s offshore area. 82,000 square km, taking the total value of the
According to ADNOC: “Some of the blocks contract to $2.12bn.
already have discoveries, and within the com- With Onshore Block 5 and Offshore Blocks
bined area there are 290 targeted reservoirs from 3 and 4 already apportioned, the Pakistani
92 prospects and leads. In addition to the coun- consortium’s interest is presumably in either
try’s conventional potential, one of the offered Onshore Block 2 or Offshore Block 5, which
blocks is expected to contain significant uncon- covers an area north of the 50bn-barrel Upper
ventional resources.” Zakum oilfield.™

Week 26 01•July•2021 www. NEWSBASE .com P7