KARACHI: Italian oil and gas group ENI, in a push to exit Pakistan after 20 years, has sold its assets to a joint venture comprising its local employee and the Hub Power Company Limited (HUBCO), the company said this week.
The move by ENI, which supplied three million cubic meters of natural gas a day to Pakistan in 2018, underlines the chronic problems facing the country, where a deep energy crisis has hampered economic development for years.
HUBCO and ENI could not be reached for comment, but in a material disclosure on the Pakistan Stock Exchange, HUBCO said: “We hereby inform you that Hub Power Holdings Limited (“Company”), a wholly owned subsidiary of The Hub Power Company Limited (“HUBCO”) together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all the upstream operations in Pakistan of ENI and renewable energy assets owned by ENI in Pakistan.”
The ENI website says the company has been in Pakistan since 2000 in the exploration and production, and gas and power sectors, but its local development support in the country began in the 1970s.
ENI, one of seven “supermajor” oil companies in the world, is also one of the largest gas producers in Pakistan, actively engaged in the Bhit, Badhra and Kadanwari oil and gas exploration fields which generate 75 percent of its revenue in Pakistan.
Though officially the amount of the deal, to be finalized in three months, has not yet been disclosed, industry insiders say it is likely to fall between $160-$189 million.
It was reported in 2020 that ENI was divesting its upstream business in Pakistan, which is currently being conducted through three entities: ENI Pakistan Limited, ENI AEP limited and ENI Pakistan M limited. Insiders say the listed exploration and production companies (E&Ps) may opt to buy these assets.
ENI is currently reviewing its exploration and production portfolio and leaving or downsizing operations in countries where it has a small presence with few opportunities to grow or where development is too long and complicated.
It is working to sell assets in Australia where it aims to keep control of its solar business as it looks to meet aggressive renewable energy targets.
Last year, ENI unveiled one of the most ambitious clean-up drives in the oil industry when it pledged to slash its greenhouse gas emissions by 80%.
Apart from its global consolidation plan, analysts believe setbacks in offshore exploration may be one reason for ENI’s exit from Pakistan.
“The failure to discover oil and gas reserves in the Arabian Sea was a setback to the companies involved and it could also be one of the reasons that ENI is departing from Pakistan,” Samiullah Tariq, director research at Pakistan Kuwait Investment, said. “Usually when foreign companies exit, locals get relatively favorable valuations.”
Italian oil giant ENI to exit Pakistan after 20 years
https://arab.news/5sxny
Italian oil giant ENI to exit Pakistan after 20 years
- Reasons for exit are global consolidation plan and setbacks in offshore exploration, analysts say
- Industry insiders say exit deal amount likely to fall between $160-$189 million
Pakistan Navy launches fourth Hangor-class submarine ‘Ghazi’ in China
- As per Islamabad’s agreement with Beijing, four of eight submarines will be built in China and the rest in Pakistan
- Navy says all four submarines under construction in China undergoing sea trials, in final stages of being handed over
ISLAMABAD: The Pakistan Navy announced on Wednesday it has launched the fourth Hangor-class submarine named “Ghazi” at a Chinese shipyard in Wuhan, saying the development will help maintain peace in the region.
Pakistan’s government signed an agreement with China for the acquisition of eight Hangor-class submarines, the navy said in its press release. Under the contract, four submarines are being built in China while the remaining four will be constructed in Pakistan by the Karachi Shipyard and Engineering Works Ltd. company.
“With the launching of GHAZI, Pakistan Navy has achieved another significant milestone where all four submarines under construction in China are now undergoing rigorous sea trials and are in the final stages of being handed over to Pakistan,” the navy said.
It further said that these submarines will be fitted with advanced weapons and sensors capable of engaging targets at standoff ranges.
“Hangor-class submarines will be pivotal in maintaining peace and stability in the region,” the navy added.
Pakistan’s agreement with China is set to strengthen its naval defenses, especially as ties with arch-rival India remain tense.
India and Pakistan were involved in a four-day military confrontation in May this year before Washington intervened and brokered a ceasefire. Four days of confrontation saw the two countries pound each other with fighter jets, exchange artillery fire, missiles and drone strikes before peace prevailed.
Pakistan’s air force used Chinese-made J-10 fighter jets in May to shoot down an Indian Air Force Rafale aircraft, made by France.
The altercation between the nuclear-armed neighbors surprised many in the military community and raised questions over the superiority of Western hardware over Chinese alternatives.
Islamabad has long been Beijing’s top arms customer, and over the 2020-2024 period bought over 60 percent of China’s weapons exports, according to data from the Stockholm International Peace Research Institute.
