KARACHI: Pakistan’s leading oil and gas exploration companies and the Government Holding Limited has decided to incorporate a company in Dubai Global Market to fulfill the conditions for the bidding for the block offered in the Dubai.
The consortium comprising Mari Petroleum Company Limited (MPCL), Pakistan Petroleum Limited, Oil and Gas Development Company Limited, and Government Holding (Pvt) Limited, shall incorporate a company, a special purpose vehicle “NewCo”, in Abu Dhabi Global Market or Pakistan, with each consortium partner having 25 percent shareholding in the NewCo, the statement issued by Mari Petroleum Company at the Pakistan Stock Exchange said.
The consortium has submitted a bid for one of the blocks offered in the Abu Dhabi Bid Round 2019 and incorporation of the NewCo is one of the preconditions to qualify for the award, the statement said.
The company also clarified that 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 will be dissolved.
The statement said that subjected to the approval of respective shareholders and the Consortium being declared a successful bidder by SCFEA, the incorporation of the NewCo and execution of all definitive agreements, an amount of up to $100 million will be invested by MPCL over a period of five years (total investment by all Consortium partners up to $400 million). Any subsequent funding, if required, will be subject to seeking shareholders’ and relevant approvals. In addition, subject to approval of their respective shareholders, MPCL and other members of the consortium are required to provide a parent company guarantee for all obligations of the NewCo under the definitive agreements to Abu Dhabi National Oil Company and SCFEA.