HUBCO announces to acquire ENI
Aftab Ahmed
HUBCO is going to expand into oil and gas upstream along with renewable energy by acquiring Italian firm ENI.
In addition to onshore exploration activities, ENI had been an operator in offshore exploration activities in Karachi. The efforts did not yield results. However, it was part of a consortium of Pakistani state companies like OGDCL, PPL, GHPL, and US firm ExxonMobil.
It had also made footprints in the LNG business in Pakistan. ENI had participated in a long-term LNG supply tender and won the contract. It was currently supplying 100 mmcfd LNG to Pakistan LNG Limited (PLL) on a long-term contract.
Officials say that Pakistani regulator director General Petroleum Concession (DGPC) had not played its due role and several other companies including BP and Petronas have also left Pakistan.
https://newztodays.com/no-offshore-reserves-found-in-pakistan/
Moreover, companies like ENI and Shell were shifting towards the LNG business. So, they were shifting their interest towards these activities which may be one of the reasons ENI left Pakistan.
However, HUBC which has been mainly in the business of power generation was now going to make footprints in the oil and gas exploration business. So, it was expanding its business which was a good sign for the company, experts say.
Hub Power Company (HUBC) through its wholly-owned subsidiary together with ENI’s local employees has executed definitive agreements to acquire all the operations of ENI in Pakistan.
The Hub Power Holdings Limited (Company), a wholly-owned subsidiary of the Hub Power Company Limited together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all the upstream operations of ENI in Pakistan along with its renewable energy assets.
Eni S.p.A. (ENI) is looking to sell its upstream E&P business in Pakistan, which is organized under three legal entities, ENI Pakistan Limited, ENI AEP Limited, and ENI Pakistan M Limited SARL, and its new energy business which is organized under Eni New Energy Pakistan (Pvt) Ltd, (together “Eni Pakistan”) (the “Proposed Transaction”).
It has a current product portfolio of 3 operating and 6 non-operating fields. Operating fields included Bhit, Badhra, and Kadanwari, and Non-operating fields are Zamzama, Sawan, Latif, Miano, Tajjal, and Mitha.
Upside potential in four exploration leases is covering an area of over 3,000 square km (gross). Onshore acreage spans the Middle Indus and Kirthar Fold belt basins; 2020 activity focused on Latif and Mubarak.
As per PPIS, ENI has 21mnboe of 2P gas reserves and 0.6mn bbl of 2P oil reserves.
The new energy business comprises a 10MWp photovoltaic plant developed near the Bhit gas field, which provides power to the upstream operations. Bhit processing plant capacity is 320mmcfd against Bhit and Badhra cumulative production of 150mmcfd in FY20.
Besides, ENI has also a stake in offshore blocks of Indus C and Indus N with a working interest of 60% and 70% respectively, in partnership with PPL. The transaction is subject to require compliance with applicable legal and regulatory processes and approval from competent authorities.
