The Abu Dhabi National Oil Company (ADNOC) said on Tuesday it had signed an exploration concession agreement with a consortium of four Pakistani companies, in the major oil producer's second competitive block bid round.

The consortium led by Pakistan Petroleum Limited (PPL) was given the exploration rights for Abu Dhabi's Offshore Block 5. The group is expected to invest up to $304.7 million, including a participation fee, ADNOC said in a statement.

The consortium also comprises Mari Petroleum Company Limited (MPCL), Oil and Gas Development Company Limited (OGDCL) and Government Holdings (Private) Limited (GHPL).

The group will hold a 100% stake in the exploration phase. In the event of a successful commercial discovery, they will have the right to a production concession, though ADNOC has the option to hold a 60% stake in the production phase.

"The term of the production phase is 35 years from the commencement of the exploration phase and the block offers the potential to create significant in-country value for the UAE over the lifetime of the concession," ADNOC said.