ISLAMABAD, Feb 27: The government on Monday granted four petroleum exploration licences to Eni Pakistan Limited. According to a press release the four blocks for which licenses have been granted are: Mithi (N0 2470-3), Rajat (No 2470-2), Thar (No 2569-2) and Umarkot (No 2469-8), located in Tharparkar, Umarkot and Sanghar districts of Sindh. Simultaneous with the signing of petroleum exploration licences, petroleum concession agreements were also executed.

The Eni will invest about $32.4 million during the initial period of three years of the licence. The firm shall carry out G&G studies, acquisition, processing and interpretation of 2D seismic and drilling of two exploratory wells.

The Eni, which is a wholly owned subsidiary of Italian Eni SpA, has been actively involved in exploration and production activities in Pakistan since 2000. The Company’s primary assets, which are located in the Sindh province and in Offshore areas, include the Eni operated Bhit gas field, along with interests in other major gas fields like Zamzama, Kadanwari, Miano, Sawan and Rehmat. It is also working interest owner in blocks Gambat, South West Miano-II, Latif and Mubarak.

Eni’s consolidated daily average production rate in Pakistan from its operated and non-operated fields is 500 barrels per day of oil and 327 MMCF of gas.

The signing ceremony was witnessed by Amanullah Khan Jadoon, Minister for Petroleum and Natural Resources and Muhammad Naseer Mengal, Minister of State for Petroleum and Natural Resources. The licences and the petroleum concession agreements were signed by Secretary Petroleum Ahmad Waqar and Director General Petroleum Mohammad Naeem Malik, and Managing Director of Eni Philip Hemmens.

In order to increase reliability of energy supply and to reduce burden on foreign exchange, the government is encouraging oil and gas exploration in the country. During the current financial year a record number of 37 blocks were advertised for competitive bidding, whereas nine more blocks are being offered for the next bidding round to be held on March 31.

Presently, there are 90 exploration licences and 120 development and production leases held by various international and local companies operating in Pakistan.