Prime International Oil and Gas Company Limited (Prime), a 50-50 joint venture between Hub Power Holdings Limited and Eni's Employee Buy-out Group, is set to acquire Eni's business in Pakistan.

The development was shared by Hub Power Company Limited (Hubco), the parent company of Hub Power Holdings Limited, in a notification sent to the Pakistan Stock Exchange (PSX) on Thursday.

“We write to inform you that Prime International Oil and Gas Company Limited (Prime), a 50-50 joint venture between Hub Power Holdings Limited (a fully owned subsidiary of The Hub Power Company Limited) and Eni’s Employee Buy-out Group, entered into four sale purchase agreements with Eni International B.V., Eni Oil Holdings B.V., Eni UK Limited and Eni ULX Limited for the purpose of acquiring Eni’s business in Pakistan,” read the notice.

It said that the 'ENI Transaction' involves Prime purchasing 100% shareholdings of Eni Pakistan Limited, Eni AEP Limited, Eni Pakistan (M) Limited and Eni New Energy Pakistan (Private) Limited from the selling entities.

The company informed that the change of control in respect of the ENI Transaction has been approved by the federal cabinet and the Director General Petroleum Concessions (DGPC) along with other relevant authorities.

It added that the completion of the ENI Transaction will be achieved pursuant to the requisite regulatory process.

“This is a landmark achievement for the Hub Power Company as we have now completed another step towards diversification of our portfolio, maximizing the value for our shareholders and delivering on our commitments,” said the company.

“Completion of the ENI Transaction is also expected to potentially reduce the country’s dependence on imported oil and gas thus reduce the burden on national foreign exchange reserves,” it added.

Global supply-chain disruptions owing to the Russia-Ukraine war have led prices of energy commodities including LNG to skyrocket.

On the other hand, Pakistan is dealing with fuel shortages, as it has failed to secure LNG cargoes owing to high international demand.

Last year, Hub Power Holdings Limited acquired all the upstream operations in Pakistan of Eni and renewable energy assets owned by Eni in Pakistan.

Eni is a global energy company, which has been operating in Pakistan since the year 2000 in the exploration and production sector.