Hub Power Company (Hubco) has decided to acquire the upstream operations of the Italian company ENI. Eni, the Italian oil and gas exploration firm, has finally ended its 20-year of journey in Pakistan.
According to a notification sent to Pakistan Stock Exchange “The Hub Power Company together with Eni’s local employees (in 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,” said Hubco Company Secretary Sohail Kassamali.
Eni had formally put its local operations on sale in June 2020 after it, failed to convince the government to revise up their profit margins and the incumbent and the previous government in the centre prolonged delay in auction of new oil and gas exploration blocks in the country.
The Eni, in partnership with the US-firm ExxonMobil and two local partners; Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), conducted offshore drilling at Kekra-1 well in Karachi waters at the cost of around $100 million sometime in April 2019, but the well did not produce hydrocarbons.
Although the exact price of acquisition has not been revealed but sources have confirmed that the two institutions have finalised the price. Besides, the deal consists of acquisition of 10 megawatt (MW) photovoltaic plant.