Islamabad: Tri Resources Investments Inc, a company of the Hashoo Group, has acquired the entire stake in Australian exploration company BHP Billiton as part of its aggressive and ambitious investment plans.
“Tri Resources Investments has successfully executed the sale and purchase agreement for the acquisition of entire shareholding of BHP Pakistan,” said Kamran Ahmed, Chief Executive Officer of Ocean Petroleum Limited, a flagship company of the Hashoo Group in the oil and gas industry.
“The Competition Commission of Pakistan has already issued a no-objection certificate and NOC from the Ministry of Petroleum is expected soon.”
The Hashoo Group, in its bid to ramp up investment in hydrocarbon production in Pakistan, would take steps to stop the fast declining gas output from the Zamzama field immediately after the petroleum ministry gave the go-ahead, Ahmed said while talking to a group of journalists.
According to him, BHP has framed a policy to remain engaged in its core oil business globally whereas in Pakistan prospects of oil exploration are low compared to gas.
“This was the reason why BHP wanted to quit,” he said, adding output from the Zamzama field had dropped from 500 million cubic feet of gas per day (mmcfd) to 130 mmcfd.
However, a study conducted by Ocean Petroleum indicates that the field has still the potential to produce 200 to 300 billion cubic feet of gas.
Ocean Petroleum, with the help of joint-venture partners, has increased production from the Ratana field to over 13 mmcfd of gas and 850 barrels per day (bpd) of condensate, which is expected to go up further to over 20 mmcfd and 1,500 bpd before winter sets in.
Ahmed sounded confident that, though small, the increase in output from Ratana would have a significant impact on gas supply in the Rawalpindi region. Also, the joint-venture partners have embarked on the acquisition of the whole field that carries a great upside potential and is likely to add to the oil and gas reserves.
Oil and Gas Development Company has offered 14 fields for joint partnership, of which Ocean Petroleum is hoping to get partnership in seven to eight.
Ocean Petroleum is also working on rehabilitating the old and depleted oil and gas fields with an aim to conserve, produce and supply hydrocarbon to the national network.
Already in July, the company revived the Dhurnal oil field by working on one of the oldest wells, which led to oil production of about 500 bpd and 1.5 mmcfd of gas.
However, it is surprising that the price of gas from the Dhurnal field is 25 cents per million British thermal units. “We have raised the issue with the government, arguing the price should at least be $3 per mmbtu to make the process feasible,” Ahmed said.
“This success has restored the confidence of scientists, encouraging them to try new technologies in other Dhurnal wells, which are likely to produce over 1,500 bpd of oil and about 5 mmcfd of gas.”
Ocean Petroleum has invested $500 million in oil and gas drilling and hopes to make another capital injection of around $200 million in the next two years. At present, the company is producing 47 mmcfd of gas, 5,700 barrels of oil and 60 tons of liquefied petroleum gas along with joint-venture partners.
