Orient Petroleum Private Limited (OPPL), a subsidiary of Hashoo Group, one of the leading investor in Pakistan's oil/gas exploration and production sector has completed acquisition of BHPL, a part of the BHP Billiton group.
Kamran Ahmed, Chief Executive Officer of Ocean Pakistan Limited (OPL) said this while talking to a group of media persons here on Tuesday. He said that the company has been renamed as Orient Petroleum Private Limited (OPPL), which is an Australian registered entity.
The Tri-Resources Investment Inc, a sister organisation of Hashoo Group acquired BHPP, an Australian Exploration and Production (E&P) company with 38.5 percent working interest and is the operator-ship of the Zamzama Field located in Sindh. The field was discovered in 1988 and its peak production was in excess of 500 Million Cubic Feet per Day of gas during 2009, and was one of the highest gas producers in Pakistan.
Currently, the field is producing gas at an average rate of 120 MMCFD raw gas; however, the new management has identified several prospects and upside that are under consideration to enhance field life and production. The company also has a Technical Services Agreement with BHP Billiton in Houston, Texas for any support required.
Ahmed, CEO, OPPL & OPL said that the acquisition shall enable Hashoo Group to further reinforce its assets base in Pakistan and the group has also shown an undaunted interest when it comes to undertaking risks of business in the larger interest of energy self-sufficiency of the country.
He said the Hashoo Group is also committed to Pakistan and has embarked on a strategy to increase its foot prints in the E&P sector both locally as well as internationally. He said during ongoing year, the company will invest up to $35 million dollars in oil/gas exploration, adding that at present group's total investment in Pakistan is over $600 millions in oil/gas sector.
Apart from Oil and Gas portfolio, HG has other diversified business assets across the country including unrivalled standing in hospitality sector as the group owns various five star hotels in Pakistan. The Zamzama Gas Field has an operating history of over a decade with competent workforce running its state of the art gas facilities which were set up at the cost of over US$500 Million.
HG oil and gas division also enjoys extensive past experience to revitalise old fields in Pakistan and shall focus to optimise and enhance Zamzama production. The potential for Zamzama deep and north structure are also very attractive with large upside to company and to the gas production in Pakistan.
"As compared with 2014 wellhead gas price of $4.2 per MMBTU now we are getting $2.9 per MMBTU as a result of international phenomenon" Ahmed said in response to a question. Replying to another question, he said that the company was unable to undertake exploration activities in two blocks due to security reasons as one Harnai Block is situated in Balochistan and other Marwat Block is situated in KPK-both the areas are militancy hit but now situation is improving.