KARACHI: Italian oil and gas group ENI, in a push to exit Pakistan after 20 years, has sold its assets to a joint venture comprising its local employee and the Hub Power Company Limited (HUBCO), the company said this week.
The move by ENI, which supplied three million cubic meters of natural gas a day to Pakistan in 2018, underlines the chronic problems facing the country, where a deep energy crisis has hampered economic development for years.
HUBCO and ENI could not be reached for comment, but in a material disclosure on the Pakistan Stock Exchange, HUBCO said: “We hereby inform you that Hub Power Holdings Limited (“Company”), a wholly owned subsidiary of The Hub Power Company Limited (“HUBCO”) together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all the upstream operations in Pakistan of ENI and renewable energy assets owned by ENI in Pakistan.”
The ENI website says the company has been in Pakistan since 2000 in the exploration and production, and gas and power sectors, but its local development support in the country began in the 1970s.
ENI, one of seven “supermajor” oil companies in the world, is also one of the largest gas producers in Pakistan, actively engaged in the Bhit, Badhra and Kadanwari oil and gas exploration fields which generate 75 percent of its revenue in Pakistan.
Though officially the amount of the deal, to be finalized in three months, has not yet been disclosed, industry insiders say it is likely to fall between $160-$189 million.
It was reported in 2020 that ENI was divesting its upstream business in Pakistan, which is currently being conducted through three entities: ENI Pakistan Limited, ENI AEP limited and ENI Pakistan M limited. Insiders say the listed exploration and production companies (E&Ps) may opt to buy these assets.
ENI is currently reviewing its exploration and production portfolio and leaving or downsizing operations in countries where it has a small presence with few opportunities to grow or where development is too long and complicated.
It is working to sell assets in Australia where it aims to keep control of its solar business as it looks to meet aggressive renewable energy targets.
Last year, ENI unveiled one of the most ambitious clean-up drives in the oil industry when it pledged to slash its greenhouse gas emissions by 80%.
Apart from its global consolidation plan, analysts believe setbacks in offshore exploration may be one reason for ENI’s exit from Pakistan.
“The failure to discover oil and gas reserves in the Arabian Sea was a setback to the companies involved and it could also be one of the reasons that ENI is departing from Pakistan,” Samiullah Tariq, director research at Pakistan Kuwait Investment, said. “Usually when foreign companies exit, locals get relatively favorable valuations.”
Italian oil giant ENI to exit Pakistan after 20 years
https://arab.news/5sxny
Italian oil giant ENI to exit Pakistan after 20 years
- Reasons for exit are global consolidation plan and setbacks in offshore exploration, analysts say
- Industry insiders say exit deal amount likely to fall between $160-$189 million
Italian Navy ship arrives in Pakistan’s Karachi to strengthen maritime cooperation
- Antonio Marceglia to discuss maritime security, hold joint training sessions during three-day visit
- Pakistan, Italian navy ships to partake in warfare-related exercises designed to enhance coordination
ISLAMABAD: The Italian Navy ship Antonio Marceglia arrived in the southern port city of Karachi on Tuesday to strengthen maritime cooperation with Pakistan and partake in warfare-related exercises, Pakistan Navy’s military media wing said.
The Italian ship arrived at the Karachi Port for a three-day goodwill visit during which the commanding officer and crew of the Antonio Marceglia were accorded a warm welcome by Pakistan Navy officials, the Italian ambassador to Pakistan and other officials of the Italian consulate in Karachi.
The Director-General of Public Relations (DGPR) of the Pakistan Navy said in a statement that the Italian ship’s crew will participate in a range of professional engagements during its port call. These include cross-ship visits, discussions on maritime security and joint training sessions.
“These engagements are designed to foster deeper mutual understanding, enhance bilateral naval cooperation and advance operational interoperability between the two navies,” the Pakistan Navy said.
It said the visit would culminate in the Sea Phase, which would feature various warfare-related exercises designed to enhance tactical coordination and maritime security operations of both navies.
“The visit of Italian Navy Ship ITS ANTONIO MARCEGLIA reinforces growing maritime partnership between both countries,” the statement said. “It also reflects shared resolve of both navies to work together for regional stability.”
Pakistan regularly collaborates with its counterparts from various parts of the world to ensure illicit activities such as smuggling, drug trafficking and piracy are kept in check.
Pakistan stresses increasing trade, tourism cooperation with Bangladesh amid improving ties
- Deputy PM Ishaq Dar meets Bangladesh high commissioner to discuss ties, says Pakistan’s FO
- Islamabad, Dhaka have sought closer ties since ex-Bangladesh PM Sheikh Hasina’s ouster in 2024
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Tuesday stressed the need to enhance cooperation in trade and tourism with Bangladesh, the Pakistani foreign office said, as Dhaka and Islamabad attempt to forge closer ties amid improving bilateral relations.
Pakistan and Bangladesh have improved their strained ties since August last year after former premier Sheikh Hasina fled to India, forced by a violent student-led protest. Pakistan and Bangladesh were once one nation but split in a brutal 1971 war, with Bangladesh drawing closer to India.
Bangladesh’s High Commissioner Iqbal Hussain Khan met Dar, who also serves as Pakistan’s foreign minister, in Islamabad to discuss bilateral ties, the Pakistani foreign office said.
“Appreciating the positive trajectory of bilateral ties, he [Dar] emphasized the need to further expand cooperation- especially in trade, tourism, & people-to-people exchanges,” the foreign office said.
In February this month, Bangladesh and Pakistan started direct government-to-government trade with Dhaka importing 50,000 tons of rice from Islamabad, a sign of improving relations between the two.
Direct private trade between the countries restarted in November 2024, when a container ship sailed from Pakistan’s Karachi to Bangladesh’s Chittagong. It was the first cargo ship in decades to sail directly between the two nations.
In recent months, Pakistan’s Prime Minister Shehbaz Sharif and Bangladesh’s Chief Adviser Muhammad Yunus have met on the sidelines of international forums, including the United Nations General Assembly in New York and the D-8 Summit in Cairo.
These interactions have been described as cordial, with both leaders expressing a desire to deepen bilateral cooperation.
Met office forecasts 25% above-normal monsoon rain for Pakistan this year
- Punjab’s disaster management agency says it has made arrangements to deal with the risk of flooding
- Pakistan has witnessed extreme weather like heatwaves, droughts and devastating floods in recent years
ISLAMABAD: Pakistan is likely to experience 25 percent more rainfall than average during the upcoming monsoon season, officials said on Tuesday, with the country’s most populous province, Punjab, rolling out preparedness measures to address urban flooding and other climate-related emergencies.
The warning comes as Pakistan continues to suffer the effects of increasingly frequent and intense weather events, including heatwaves, droughts and devastating floods. Although the country contributes less than one percent to global carbon emissions, it remains among the most climate-vulnerable nations in the world.
Punjab’s Provincial Disaster Management Authority (PDMA) Director General Irfan Ali Kathia visited the Pakistan Meteorological Department (PMD) headquarters in Lahore to assess forecasts and coordination efforts ahead of the seasonal rains.
“This year’s monsoon rainfall is expected to be 25 percent above normal levels,” officials said during a briefing. “The heaviest rains are forecast for the month of August.”
During the visit, Chief Meteorologist Zahir Babar provided a detailed overview of the seasonal outlook and flood forecasting mechanisms, while emphasizing the importance of early warnings in major cities like Lahore, Multan, Faisalabad and Gujranwala to minimize urban flood impacts.
Kathia said all necessary arrangements have been completed to manage the risk of flooding during the monsoon.
He stressed that a joint response plan must be implemented by all concerned departments to deal with cloudburst events and urban flooding.
Pakistan experienced catastrophic monsoon rains in 2022 that submerged large parts of the country, killing nearly 1,700 people and causing damage to homes, farmland and infrastructure exceeding $35 billion, according to government and UN estimates.
Officials also reviewed the flood early warning system for hill torrents and the control room operations for real-time monitoring of river flows under the Flood Forecasting Division.
Kathia praised the Meteorological Department’s coordination and technical preparedness, calling the working relationship between the PMD and PDMA Punjab “excellent.”
Pakistan, UAE voice concern over Israel-Iran war as Trump seeks ‘end’ to nuclear threat
- UAE and Pakistan stress urgent need to support efforts for regional peace and stability
- Trump says reporters will ‘find out’ where the situation is headed in the next two days
ISLAMABAD: Pakistan and the United Arab Emirates expressed deep concern over Israel’s escalating war with Iran, the foreign office said on Tuesday, as US President Donald Trump said he wanted a “real end” to Iran’s nuclear program and warned of potential new developments in the coming days.
The exchange between Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar and his UAE counterpart, Sheikh Abdullah bin Zayed Al Nahyan, took place over a phone call, according to the official intimation.
The war between Iran and US ally Israel, which began on Friday when Israel launched airstrikes on Iranian nuclear and military facilities, has alarmed a region already on edge since Israel’s military assault on Gaza began in October 2023.
Iran launched its own retaliatory missile attacks, targeting dozens of strategic sites in Israel, as civilian casualties mounted on both sides. There has been no sign of de-escalation so far, with both sides continuing to strike military and economic targets, raising fears of a wider regional conflict.
“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar received a call from the Deputy Prime Minister/Foreign Minister of UAE, Sheikh Abdullah bin Zayed Al Nahyan,” the foreign office of Pakistan said in a social media post.
“The two leaders discussed the evolving regional situation in the wake of Israel’s military strikes against the Islamic Republic of Iran,” it added. “They expressed deep concern over the escalating tensions and underscored the urgent need to support efforts for ensuring regional peace and stability.”
Earlier, Trump spoke to reporters aboard Air Force One while returning from a Group of Seven summit in Canada.
He said he may send US Middle East Envoy Steve Witkoff or Vice President JD Vance to Iran for talks, but added, “it depends on what happens when I get back.”
“Iran cannot have a nuclear weapon, it’s very simple,” he continued, adding that he wanted a “real end” to Iran’s nuclear ambitions, with Tehran “giving up entirely” on any weapons program.
The US president also warned residents in Tehran to evacuate amid fears of further escalation, but remained vague about Israel’s next steps in the conflict.
“You’re going to find out over the next two days,” he said. “Nobody’s slowed up so far.”
With input from Reuters
Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project
- Reko Diq, one of the world’s largest undeveloped copper-gold deposits, plans production in three years
- PM Sharif says extending railway connectivity will boost the mining and mineral sector in Balochistan
ISLAMABAD: Pakistan plans to upgrade its railway infrastructure and extend the network to Reko Diq, a massive copper and gold mining project in southwestern Balochistan province, as Prime Minister Shehbaz Sharif on Tuesday instructed officials to set up an inter-ministerial committee for the project.
The move aims to support future cargo and transport needs, particularly as Reko Diq, one of the world’s largest undeveloped copper-gold deposits, is set to begin production within three years.
The mine is being developed by Barrick Gold, which holds a 50 percent stake, with the remaining share held jointly by Pakistan’s federal and provincial governments. The company has projected the project will generate up to $74 billion in free cash flow over its expected 37-year lifespan.
“The Prime Minister directed that Reko Diq be connected to the railway network by 2028,” Sharif’s office said in a statement circulated after the meeting. “The Prime Minister instructed the formation of an inter-ministerial committee to explore financing options for the upgrade and expansion of the railway system.”
“The committee will present concrete proposals regarding the financing required for the development of Pakistan Railways and its extension to Reko Diq,” it added.
Calling railways a “backbone” of Pakistan’s economy and communications network, the prime minister said it was an affordable, fast and environmentally friendly mode of transport.
He added extending rail connectivity to Reko Diq would boost the mining and minerals sector in Balochistan and create new employment opportunities for residents in the province.
The mineral-rich but underdeveloped province of Balochistan is vital to Beijing’s $65 billion China-Pakistan Economic Corridor (CPEC), the flagship Pakistan arm of President Xi Jinping’s Belt and Road Initiative.
However, while the province is viewed as vital for Pakistan’s economic future, it remains marred by separatist violence, posing serious challenges to the implementation of large-scale infrastructure and mining projects.
The railway network, despite being a key mode of transport for the province’s widely dispersed population, has also come under threat from militant attacks.
Earlier this year, armed separatists took a passenger train hostage in Balochistan, triggering a military rescue operation in which security forces said all the militants were killed.
