PPL finalises production concession agreement for offshore block in Abu Dhabi

KARACHI: Pakistan Petroleum Limited (PPL) has signed and executed a production concession agreement (PCA) for the development of Offshore Block 5 in Abu Dhabi.

The PCA was signed between the Supreme Council for Financial and Economic Affairs (SCFEA), on behalf of the Government of the Emirate of Abu Dhabi, the Abu Dhabi National Oil Company (ADNOC), and Pakistan International Oil Limited (PIOL), PPL announced in a statement on Friday.

PIOL is a special purpose vehicle incorporated by a consortium comprising PPL, Oil and Gas Development Company Limited, Mari Energies Limited, and Government Holdings (Private) Limited -- each holding a 25 per cent stake. PPL is the Management Shareholder and Operator of PIOL. Following the execution of the PCA, the partnership will be between ADNOC and PIOL, with PIOL holding a 40 percent participating interest.PIOL was awarded the offshore block in 2021 after a competitive bidding round for offshore exploration in Abu Dhabi.