Now, the company has been renamed as ‘Orient Petroleum Pty Limited” (OPPL), registered in Australia.
Talking to journalists earlier today, the OPPL Chief Executive Officer Kamran Ahmed said the parent company of BHPL had decided to sell its assets in Pakistan due to its strategy of focusing on oil business in the world.
An auction took place in 2014 and 45 local and global firms participated in it. Orient Petroleum was among the three firms shortlisted for submitting the bid.
Orient Petroleum, owned by the Hashoo Group, had formally taken over BHPL and would invest $30 to $35 million in drilling more wells in the Zamzama field, Ahmed said.
“Production from the Zamzama field stands at 120 million cubic feet of gas per day (mmcfd) and we plan to enhance it to 150 mmcfd in an effort to contribute to the government efforts to overcome the energy crisis in the country,” he said, while pointing out that the drop in global oil prices had driven down gas prices in Pakistan.
The gas price for the Zamzama field has come down to $2.9 per million British thermal units (mmbtu) compared to earlier $4.4 following the plunge in world crude markets.
However, Ahmed pledged that the company would drill more wells despite the low gas prices. The Hashoo Group has invested $600 million in the oil and gas exploration sector so far.
According to the CEO, the Zamzama field holds estimated gas deposits of 2 trillion cubic feet (tcf), of which 1.5 tcf has been tapped so far. There is still potential for extracting 200 to 300 billion cubic feet of gas.
He declared that the Hashoo Group had retained all 170 employees of BHPL and it planned to drill two new wells in the Zamzama field this year.
BHPL had a 38.5% working interest and was the operator of Zamzama field. The field was discovered in 1988, its production peaked at over 500 mmcfd in 2009 and it became one of the largest gas producers in Pakistan.
At present, the field is producing at an average rate of 120 mmcfd, however, the new management has identified several possibilities and the upside potential that are under consideration for enhancing the field’s life and production.
It has also entered into a technical services agreement with BHP Billiton in Houston, Texas for any support required.
The Zamzama field has a competent workforce running its state-of-the-art gas facilities set up at a cost of around $500 million.
Ahmed voiced the hope that crude oil prices would stabilise as Saudi Arabia and other members of the Organisation of Petroleum Exporting Countries (OPEC) were going to meet this month. He saw oil prices going up to $40 to $45 per barrel in a year.
“If crude prices rise to $50 per barrel, it will be a good sign for the energy firm that will be able to sustain its business,” he said.
