Italy’s Eni has sold its Pakistan business to Prime International Oil & Gas Company as part of a plan to streamline its upstream portfolio to focus on strategic assets.
Eni said yesterday that it “has reached an agreement to sell its shares in its entities in Pakistan to Prime International Oil & Gas Company, a newly established company formed by former Eni’s local employees’ team and Hub Power Company Ltd, the largest Independent Pakistani Power Producer.”
The activities covered by the agreement include interests in eight development and production leases in the Kithar Fold Belt, and the Middle Indus Basins and four exploration licenses in the Middle Insud and the Indus Offshore Basins. Eni’s main permits were in Bhit/Badhra (40%) and Kadanwari (18.42%). Other shares were in the permits for Latif (33.3%), Zamzama (17.75%) and Sawan (23.7%).
Eni in 2019 produced a total of 37 billion cubic feet of gas and 7 million barrels of oil from its Pakistan assets.
“This agreement aligns to Eni’s wider strategy of reshaping and simplifying the company’s portfolio, extracting additional value from its strategic assets and disposing non-core businesses as per its strategic plan 2021-2014,” Eni said in a statement.
The company did not disclose the value of the deal.
Pakistan has seen an exodus of international players in recent years, with companies such as Australia’s BHP and OMV of Austria divesting all or part of their upstream assets.