MEOG: UAE bid expected as Iraq talks connectivity

In this week’s MEOG, we look at plans by a Pakistani consortium to set up a special purpose vehicle to bid on an exploration block in the UAE, while Iraq’s Prime Minister has met with regional counterparts to discuss gas and electricity interconnectivity.

A group of four Pakistan-based oil and gas companies have formed a consortium to bid for an exploration block advertised by Abu Dhabi National Oil Co. (ADNOC) in its second competitive bid round in 2019.

Islamabad-based Mari Petroleum submitted a filing to the local stock exchange which said: “A consortium comprising Mari Petroleum Company Ltd, Pakistan Petroleum Ltd, Oil and Gas Development Company Ltd, and Government Holding (Private) Ltd, shall incorporate a company/special purpose vehicle (a “NewCo”), in Abu Dhabi Global Market or Pakistan, with each consortium partner having 25% shareholding in the NewCo.”

It added: “The award shall be granted by the Supreme Council for Finance and Economic Affairs (SCFEA) of the Emirate of Abu Dhabi, and that no decision in this regard has so far been made. In case the block is not awarded to the consortium, the NewCo shall be dissolved.”

The blocks included in the second round cover large areas throughout Abu Dhabi, covering a total acreage of 34,000 square km. Onshore Block 2 is in the south-west, bordering Saudi Arabia, while Onshore Block 5 borders Oman in the south-east. Offshore Blocks 3, 4 and 5 cover the majority of Abu Dhabi’s offshore area.

Meanwhile, following a meeting with Jordan’s King Abdullah II and Egyptian President Abdel Fattah el-Sisi, the office of Iraqi Prime Minister Mustafa al-Kadhimi said: “This visit is an important message to our people that we are mutually supportive and unified to serve our people and the people of the region.”