Hashoo Group Acquires BHP Billiton's Pakistan Business

Hashoo Group, via group company Orient Petroleum, has completed acquisition of BHP Billiton’s Pakistan subsidiary, BHPL.

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.

BHPL has been renamed Orient Petroleum Pty Limited (OPPL) and will be registered in Australia, Express Tribune, a local newspaper reported Wednesday.

OPPL Chief Executive Officer Kamran Ahmed said the company would invest $30 to $35 million in drilling more wells in the Zamzama field.

“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 government efforts to overcome the energy crisis in the country,” Express Tribune quoted Ahmed as saying.

He added that more wells would be drilled despite low gas prices.

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.

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, Ahmed stated.

BHPL had a 38.5 percent working interest and was the operator of Zamzama field.