Karachi, June 12, 2025 – In a major milestone for Pakistan’s energy sector, Pakistan International Oil Limited (PIOL) has officially signed a production concession agreement (PCA) for the development of a strategic offshore block in Abu Dhabi, marking a new chapter in the country’s regional energy collaboration.
The agreement pertains to Offshore Block 5, one of the promising hydrocarbon exploration areas in the United Arab Emirates. The landmark PCA was inked between the Supreme Council for Financial and Economic Affairs (SCFEA), acting on behalf of the Government of the Emirate of Abu Dhabi, Abu Dhabi National Oil Company (ADNOC), and PIOL.
According to an official communication submitted to both the Pakistan Stock Exchange (PSX) and the London Stock Exchange (LSE), this agreement marks a strategic entry of Pakistan’s oil exploration entities into the UAE’s lucrative upstream oil and gas sector.
PIOL, a special purpose vehicle, was formed through a joint venture of Pakistan’s leading state-owned energy giants: Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Energies Limited, and Government Holdings (Private) Limited. Each of these four partners holds a 25% stake in PIOL, reinforcing a strong collaborative foundation.
Following the execution of the PCA, PIOL will now hold a substantial 40% participating interest in the development of Offshore Block 5. The remaining share will be retained by ADNOC, one of the world’s leading energy producers. This partnership not only expands PIOL’s international footprint but also demonstrates growing confidence in Pakistan’s upstream capabilities on the global stage.
Industry analysts view this development as a game-changer, opening the door for technology transfer, strategic reserves access, and potential economic dividends for Pakistan. The PCA signifies a powerful alliance between PIOL and ADNOC, one that could boost bilateral energy cooperation and reshape Pakistan’s role in regional energy geopolitics.