KARACHI: US energy giant ExxonMobil has pulled out of a deal with Pakistani consortium Energas for the construction of a liquefied natural gas (LNG) import terminal near Karachi, officials of both business entities confirmed while talking to Arab News on Wednesday.
“This is part of our ongoing review to find further efficiencies and strengthen the company for the future,” ExxonMobil spokesperson Alvin Foo said in an email from Singapore. “The decision does not impact our Downstream and Chemical business in Pakistan, and future investment opportunities in Pakistan will be evaluated,” he added.
In 2018, ExxonMobil had signed an agreement with Energas to support the development of Pakistan’s third LNG import terminal. According to the document, the construction work had to be carried out at Port Qasim at an estimated cost of $150 million, and the facility had to be built to accommodate 750 million cubic feet per day (mmcfd) or about 5.6 million tons LNG per year.
At present, Pakistan has two LNG terminals that handle imported gas for domestic consumption. The combined capacity of these terminals is 1.2 billion cubic feet per day.
The Pakistani consortium has a combined balance sheet of $5.7 billion and an annual turnover of $3.2 billion, along with investments in power generation projects in the country with a capacity of 2,000 megawatts.
While acknowledging the technical support provided by ExxonMobil, Energas officials said the American company’s exit would not have a major impact since it had no equity stakes in the project. They added that all regulatory approvals and licenses had already been obtained and the construction of the terminal was likely to start within the next two months.
In May 2018, ExxonMobil acquired 25 percent stakes in offshore drilling in Pakistan at Kekra-1 near the Pakistan-Iran border. Other consortium partners were Government Holdings Private Limited, Pakistan Petroleum, Italian exploration giant ENI and the Oil and Gas Development Corporation (OGDC) of Pakistan. While it was initially said that the site had bigger reserves than those in Kuwait, the project was abandoned last year when the government announced that nothing had been found.
Although the ExxonMobil spokesperson did not comment on the impact of Kekra-1 drilling failure, he said that his company was looking at measures to reduce expenses arising out of market conditions and price reductions.
“ExxonMobil is evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term as a result of market conditions and commodity price decreases,” Foo said.
US-based experts say ExxonMobil has slashed its budget after suffering financial losses amid the coronavirus pandemic.
“ExxonMobil has reduced its capital budget. They are in the shale gas business here and suffered substantial losses due to price decline,” Masood Abdali, an energy expert, told Arab News from Texas. “Also, their business was not going well globally.”
Abdali, who previously served as business development manager of Weatherford in Saudi Arabia and Bahrain, believes that Pakistan’s market is difficult since it is risky for foreign companies.
“Pakistan’s market is very difficult and the risk is very high. Therefore, the operating cost remains high for foreign companies,” he said.
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
https://arab.news/rvvtz
ExxonMobil pulls out of deal to construct LNG terminal at Pakistan's Port Qasim
- The spokesperson of the US energy company says exit won’t impact its downstream and chemical business in the country
- ExxonMobil had signed an agreement with Energas in 2018 to support the development of Pakistan’s third LNG import terminal
In Pakistan, ‘Eternal Love’ has no place on YouTube
- YouTube blocked the Urdu-language dating show after complaints that it violated cultural and religious norms
- YouTube blocked the Urdu-language dating show after complaints that it violated cultural and religious norms
ISLAMABAD: YouTube has hit pause on a dating show that whisked eight men and women from conservative Pakistan to a sun-soaked Istanbul villa, where the strangers mingled, flirted and searched for chemistry.
What was meant to be a glittering escape into modern-day romance sparked a storm back home, turning the rose-petal drama into a cultural, traditional and religious flashpoint.
Dating and sex outside of marriage are prohibited by law in the Muslim-majority country, where public displays of affection can draw penalties.
The show “Lazawal Ishq,” or “Eternal Love,” aired 50 episodes before it was recently taken off YouTube in Pakistan, though it is still available elsewhere.
The format, reminiscent of the British reality hit “Love Island,” pushed boundaries that Pakistani entertainment typically avoids.
“Our program might not be watchable in Pakistan due to political reasons,” the show posted on its Instagram page.
It advised Pakistani viewers to use virtual private networks (VPNs) to continue watching.
YouTube did not immediately reply to an AFP request for comment on why the show was suspended.
The show’s trailer starts with the host, actress Ayesha Omer, entering the villa in a white dress, where she meets contestants who are to choose a partner of their liking and test their compatibility through 100 episodes.
Omer swiftly came under fire online for wearing a “Western dress” and hosting a show that “promotes obscene and immoral content,” an increasingly common reaction to celebrities who deviate from Pakistan’s conservative expectations.
Omer countered on Instagram that “this is not a Pakistani show... it is a Turkish production, but of course people in Pakistan can watch it.”
A LOT OF COMPLAINTS
The Urdu-language show proved popular, with the inaugural trailer getting over two million views.
The online buzz underscored a growing divide between Pakistan’s younger, digitally connected audience and traditional gatekeepers anxious about changing values.
“It was something fun to watch. A show that showed that people in Pakistan can and do date even though it is frowned upon,” said one viewer who requested anonymity to speak freely.
But someone soon filed a petition to the Pakistan Electronic Media Regulatory Authority (PEMRA), it said, seeking a ban and claiming the show goes against “Pakistan’s religious and social values by showing unmarried men and women living together.”
The regulator acknowledged receiving “a lot of complaints” about “Eternal Love” but said it did not have jurisdiction over digital platforms.
PEMRA advised petitioning the Pakistan Telecommunication Authority, which oversees online content. It did not respond to requests for comment.
It is not the first time YouTube has taken down a program deemed offensive by conservative Pakistanis.
Last year, the show “Barzakh,” a family drama that touched on topics including love and spirituality, was removed on claims it promoted LGBTQ relationships.
