Eni plans to invest $10 billion in Pakistan

Will drill new wells for three shale gas projects.

ISLAMABAD: Foreign oil and gas exploration firm Eni has said that it plans to launch three shale gas pilot projects in Pakistan with an investment of $10 billion. Luigi Ciarrocchi, vice president (Asia Pacific) Eni SpA informed Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain of Eni’s intentions in a meeting held here on Thursday.

According to a press statement issued after the meeting, Ciarrocchi said that three shale gas pilot projects are being planned in Pakistan, and wells will be drilled for the projects within 2013. He said the three projects would require approximately 1,100 new wells, in addition to the 1,850 drilled in the entire country till date, entailing an investment of nearly $10 billion.

Commenting on the development, Hussain said the new Petroleum and Exploration Policy 2012 provides investor-friendly opportunities for foreign oil and gas companies. Hussain informed Ciarrocchi that several exploration blocks have been offered for prospecting, and invited Eni to participate in the bidding process.

While chairing another meeting, Hussain said that the petroleum ministry is working on acquiring gas from various sources, including new discoveries, abandoned fields, marginal gases and flare gas. The meeting was attended by the petroleum secretary, the managing directors of the Oil and Gas Development Company and Pakistan Petroleum, the petroleum additional secretary, the director general of petroleum concessions and representatives of Pakistan Petroleum Exploration and Production Companies Association.

During the meeting, discussions were held on the criteria, zonal distribution and pricing, of gas from abandoned fields, marginal gases and flare gas. An expected 200 million cubic feet per day of natural gas is estimated to be added to existing resources from these sources.

Published in The Express Tribune, November 30^th, 2012.