Monitoring Report
ISLAMABAD:
Ostensibly contrary to the directives of Prime Minister, Petroleum division is all set to get the approval of federal cabinet’s economic coordination committee (ECC) regarding the sale of ENI Pakistan to Prime International Oil & Gas Company Limited (PIOGCL).
According to sources, the petroleum division has sat aside the directives of Prime Minister regarding fulfilling all legal and codal formalities prior to placing a summary before the Economic Coordination Committee (ECC) of the Cabinet. They said that the division without getting the determination of the assets of ENI Pakistan done from an international third party is leaving no stone unturned to ensure the approval of ECC about the sale of ENI Pakistan to PIOGCL which lacks the operatorship experience.
The ECC is scheduled to be held on Friday to consider 11 agenda items including urgent advice relating to award of 5th international wheat tender 2022 opened on 26th September, 2022 for 300,000 Metric Ton., replacement of NRTC tablets used for cabinet portal with the new smart/latest tablets, assignment of working interest of M/s Zaver Petroleum Corporation Limited to M/s Orient Petroleum Inc. in Bannu west exploration license/block No. 3370-13, grant of extension in the validity period of development and production lease of Zamzama covering an area of 535.79 square kilometer in district Dadu, Sindh, grant of extension in the validity period of exploration licenses ((E.LS), tariff rationalization for power sector-KE, effective change of control from M/s Eni Pakistan Limited (companies) to PIOGCL etc.
It is relevant to note that ENI Pakistan Limited had earlier entered into sale purchase agreements (SPAs) dated 08-03-2021 with PIOGCL in respect of sale of the entire share capital and in order to effectuate the subject change of effective control/disposition of shares from M/s Eni to PIOGCL, M/s Eni requested the Government of Pakistan (GoP) for its consent under the applicable petroleum rules.
Sources in petroleum industry earlier said that the sale of assets of ENI Pakistan to PIOGCL for only $16.4 million dollars would create problems for the incumbent coalition government. They said the sale of assets of ENI Pakistan to PIOGCL for only $16.4 million dollars is going to be done while the actual worth of ENI assets is approximately more than $400 million dollar as ENI owns 12 discoveries in various blocks. They said alleged under value of the assets of ENI Pakistan would cause loss to national exchequer in terms of small tax collection. They said it is necessary for an E&P company to keep operatorship experience while the PIOGCL which is set to take over the assets of ENI is a new Exploration and Production (E&P) company and it does not keep any operatorship experience. The sale of the assets of ENI Pakistan to PIOGCL without the determining the actual worth of the assets of ENI Pakistan by an international firm would become problematic for the ruling coalition government, said sources.
It is worth mentioning that the Prime Minister has earlier seen the summary and desired from the petroleum division to place the summary before the ECC after fulfilling all legal and codal formalities. However, Petroleum division is in hurry to secure the ECC approval and remained unable to do the needful prior to seeking the ECC consent.
