Karachi: Pakistan Petroleum Limited (PPL) announced the signing and execution of a Production Concession Agreement (PCA) for the development of Offshore Block 5 in Abu Dhabi. The agreement involves the Supreme Council for Financial and Economic Affairs (SCFEA), representing the Government of Abu Dhabi, the Abu Dhabi National Oil Company (ADNOC), and Pakistan International Oil Limited (PIOL).

PIOL, a special purpose vehicle created by a consortium, includes PPL, Oil and Gas Development Company Limited, Mari Energies Limited, and Government Holdings (Private) Limited, with each entity holding a 25 percent stake. PPL acts as the Management Shareholder and Operator of PIOL. The PCA establishes a partnership between ADNOC and PIOL, with PIOL holding a 40 percent participating interest.

The Offshore Block 5 was awarded to PIOL in 2021 after a competitive bidding process for offshore exploration in Abu Dhabi. The agreement marks a significant collaboration in the energy sector between Pakistan and the United Arab Emirates.