ISLAMABAD: On Monday, the government announced their approval of the petroleum exploration and development (E&P) companies in the public sector for a $400 million exploration endeavor in Abu Dhabi, United Arab Emirates.
Shaukat Tarin, the Finance Minister, led the meeting by the Economic Coordination Committee (ECC) of the Cabinet, which permitted E&P for exploration.
An official statement said that the decision was made unanimously, with no objection to the issuance by each of the consortium companies, and agreement of Abu Dhabi National Oil Company (Adnoc) and the Supreme Council for the Financial and Economic Affairs (SCFEA) to seek international exploration and production opportunity in Abu Dhabi, UAE.
The three major gas and oil companies; Oil & Gas Development Company Ltd (OGDCL), Pakistan Petroleum Ltd (PPL), and Mari Petroleum Company Ltd (MPCL) working alongside Government Holdings Pvt Ltd (GHPL) have created a special purpose vehicle (SPV) to possess 25 percent of shareholding each of the $400m over five years in the UAE exploration.
The ECC decision enables these four companies to confirm the SPV in favor of Adnoc and SCFEA to meet the requirements of exploration.
Two years ago, the ECC approved the consortium for venturing to Abu Dhabi for exploration with their primary investment taken from resources. The consortium members notified the stock exchange all four companies will invest $100m each if the bid is victorious. The NewCo consortium would be terminated if the bid failed fails.
Over the past six years, PPLhas already ventured out for exploration and development activities inside the country. An official document verifies PPl drilled 79 exploratory wells, one in Iraq, totaling 0.6 trillion cubic feet of gas supply to the company’s reserve.
Now, to increase exploration and development on an international level, the company recognizes options in UAE, Abu Dhabi, and proposed three others MPCL, OGDCL, and GHPL for equal partnership.
Abu Dhabi is an ideal place for investment and exploration of gas and oil. The blocks suggested by Adnoc are popular for having rich hydrocarbon reservoirs.