Page 10 - MEOG Week 26 2021

MEOG PROJECTS & COMPANIES MEOG

Pakistani firms to form

SPV to bid for UAE acreage

UAE A group of four Pakistan-based oil and gas In February, ADNOC awarded Offshore
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 3
bined area there are 290 targeted reservoirs from and 4 already apportioned, the Pakistani consor-
92 prospects and leads. In addition to the coun- tium’s interest is presumably in either Onshore
try’s conventional potential, one of the offered Block 2 or Offshore Block 5, which covers an
blocks is expected to contain significant uncon- area north of the 50bn-barrel Upper Zakum
ventional resources.” oilfield.™

P10 www. NEWSBASE .com Week 26 30•June•2021