A consortium led by Pakistan Petroleum Ltd. (PPL) was awarded exploration rights for Abu Dhabi’s offshore Block 5, 100 km northeast of Abu Dhabi city, concluding the second block bid round launched by Abu Dhabi National Oil Co. (ADNOC) in 2019 (OGJ Online, May 1, 2019).
The block covers an offshore area of 6,223 sq km. Under terms of the agreement, the consortium will hold a 100% stake in the exploration phase, investing up to $304.7 million towards exploration and appraisal drilling.
The consortium will have the right to a production concession to develop and produce any commercial discoveries made during the exploration phase with ADNOC holding the option for a 60% stake. The term of the production phase is 35 years from the commencement of the exploration phase.
In addition to drilling exploration and appraisal wells, the consortium will contribute financially and technically to ADNOC’s 3D seismic survey within the block area.
The consortium consists of PPL, Mari Petroleum Co. Ltd. (MPCL), Oil and Gas Development Co. Ltd. (OGDCL), and Government Holdings (Private) Ltd. (GHPL).
As part of Abu Dhabi’s second block bid round, ADNOC awarded offshore Block 4 to a wholly-owned subsidiary of Cosmo Energy Holdings Co., Ltd.; offshore Block 3 to a consortium led by wholly-owned subsidiaries of Eni and PTT Exploration and Production Public Co. Ltd. (PTTEP); and onshore Block 5 to Occidental Petroleum Corp. (OGJ Online, Dec. 9, 2020; Dec. 21, 2020; Feb. 10, 2021).
Following ADNOC’s recent discoveries of 22 billion stock tank barrels of recoverable unconventional oil resources and 160 trillion standard cu ft of recoverable unconventional gas resources, it was decided not to award an exploration license for onshore Block 2. ADNOC intends to engage with potential partners for unconventional resource licensing opportunities around the geographical area.