ISLAMABAD, Feb 25: The government on Friday granted two licences to Italian Petroleum company ENI and its Joint venture Government Holding Pvt Ltd (GHPL) to undertake oil and gas exploration in two offshore Blocks: Indus M&N 150 km South West of Karachi each covering an area of 2500 sq km drilling well at 200 metres water depths.

According to a press release issued here the Joint Venture will invest $16 million during the three years. Simultaneous with the execution of Production sharing agreement signed today. ENI will operate these Blocks with a 100pc participating interest.

Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon, State Minister Mir Mohammad Naseer Mengal Senior Vice President of ENI Petroleum company Mr Enio Sqanzerla and senior officials of the ministry also attended the signing ceremony.

Federal Secretary Petroleum Ahmad Waqar signed the agreement on behalf of President of Pakistan and Director General Petroleum Concession G.A. Sabri, Managing Director government Holdings (Ptv) Ltd Mr.Khurshid Anwar and Regional Vice President of ENI Mr David Thomas signed the documents on behalf of their respective organizations.

The execution of the two new production "sharing Agreement form an integral part of the government's drive to attract private investment particularly direct foreign investment into the oil and gas sector and boost Pakistan's economy by substituting imported fuel oil with indigenous oil and gas production.

To meet this objective, the under exploration offshore region is being given special emphasis where an oil and gas discovery can provide a major breakthrough for attracting new risk capital significantly effecting exploration landscape of Pakistan.

ENI Pakistan Limited is one of the largest foreign investor in upstream oil and gas sector operating bit and Kadanwari gas fields located in Sindh while holding interests in eight other exploration licences and development and production leases in Pakistan.

The company is the largest foreign gas producer in the country, with net equity production of around 50,000 barrels of oil equivalent per day. ENI Pakistan Limited parent company, ENI SPA ranks amongst the largest integrated oil and gas companies in the world and has operated ventures in many countries. ENI's involvement in offshore area makes beginning of anew chapter for ENI targeting under explored and higher risk frontier sedimentary basins.

APP ADDS: Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon Friday said that Government is offering an attractive package of incentives to investors in on-shore and offshore oil and gas exploration and production activities.

Talking to a four-member delegation of Italian ENI Petroleum Company headed by its Senior Vice President Ennio Squazerla, he invited Italian companies to take advantage of these opportunities.

The ENI senior vice president briefed the minister about his company's involvement in Pakistan's oil and gas activities with particular reference to the agreement signed by ENI joint venture for offshore exploration in South West of Karachi with an investment of about US$ 16 million.

He appreciated government's encouraging policies to the foreign investors in the upstream and downstream petroleum activities. The Senior Vice President of ENI hoped that his company would continue to take full advantage of oil and gas investment opportunities here for the mutual benefit.

The Minister lauded the ENI significant contribution for the promotion of upstream petroleum sector of Pakistan and assured his full cooperation for its future endeavours. He highlighted the opportunities in the upstream and downstream petroleum sector of Pakistan and package of incentives being offered to the prospective investors.