ENI Pakistan granted 2 years extension – Alfalah Securities Limited

Karachi: ENI Pakistan Ltd., an International Oil company, has been further granted an extension of 2 years in order to retain area ‘B’ of Badhra development and production lease by the government.

According to Alfalah Securities, a joint venture between ENI Pakistan, OGDC, Kirthar Pakistan B.V and PKP B.V was granted the area of Badhra development production lease in 2004, on which ENI Pakistan was required to extend the Mughalkot structure in area A and B within a period of one year from the grant of lease or else area B would have been abandoned. On the other hand, ENI failed to extend the area within a year and availed 7 more extensions but still remained unsuccessful. Furthermore, the government in July 2009 approved an extension of further two years to ENI for retaining area “B” on the condition that the company would confirm a well in area “B” up to Mughalkot and would also have the right to explore in the lower Goru and Chiltan while, OGDC would carry the exploration/appraisal work in the area “B”. Moreover, the crude prices in area-B would be capped at USD100/bbl. ENI, having a huge investment of USD 40mn in Pakistan is the only company engaged in drilling off-shore drilling and has been obligated to carry out drilling for the exploration of well in area-B of the Badhra development and production lease.