Pakistani consortium to bid for oil exploration in Abu Dhabi

A consortium of  Pakistani companies comprising of  PPL, Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL) and Government Holdings Private Limited (GHPL) is all set to participate in bidding for one block of hydrocarbon in Abu Dhabi. The consortium has been formed on the basis of equal participation.

After carrying out detailed technical evaluations, the consortium has developed feasibility study for bidding based on which the consortium plans to bid for the selected block comprising an exploratory and appraisal work program spread over a period of nine years divided into three phases. All the respective Boards of consortium companies, after detailed deliberations and due diligence, have approved the participation by the companies in the bidding round and undertaking subsequent activities in case of success in the bidding round.

As per the estimates, the consortium will make an initial investment of $ 400 million on exploration, appraisal and development activities over the first five year period. After the commencement of production, the venture will become self-sufficient to sustain its operations and will start generating foreign exchange for the country.

The investment opportunity is expected to result in consortium’s share of oil and gas production of about 10,000 to 14,000 BOE and result in net cash flow in foreign exchange in the range of $ 830 million to about $ 1.5 billion in the next 25 years.