Summary of Proposed Investment
Project Number
10408
Company Name
ENI PAKISTAN LIMITED
Date SPI Disclosed
May 11, 2001
Country
Pakistan
Industry
Metals and Mining
Projected Board Date
Jun 14, 2001
Status
Completed
Sector
Oil and Gas Production (Includes Development)
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jun 14, 2001
Signed : Apr 11, 2002
Invested : Dec 18, 2002
Project Description
The project involves the drilling of up to an additional eight producing wells (four current exploration/appraisal wells will be converted to producers) and the construction of a 24 km gathering pipeline system and a gas processing plant. All of the produced Bhit gas from the project will be sold at the plant boundary to Sui Southern Gas Company (SSGC), a government-owned gas transmission and distribution company. A 42 km spur pipeline to be constructed by SSGC will transport the Bhit gas from the processing plant to SSGC’s main trunk line. SSGC will sell the gas to end-users in the Karachi region.
IFC has several major roles to play in this project: (i) IFC would provide long-term financing, which is not readily available in the country for a domestic gas project; (ii) By supporting this anchor project, IFC would provide assistance to the further development of Pakistan’s gas infrastructure, supporting a form of energy that is more environmentally friendly, more efficient and cost-effective than the alternatives; (iii) IFC’s financing would enable LOPL to leverage its investment in the project thus facilitating the company’s efforts to pursue other opportunities in the country; and (iv) IFC’s financing would support the Government’s initiative to maximise gas use in order to meet increasing demand and generate savings in foreign exchange.
The project has a number of important development impacts: (i) It will assist with the optimisation of Pakistan’s energy potential because it will develop Pakistan''s gas reserves in order to help satisfy the country’s net demand for energy; (ii) The project will help reduce the country’s dependency on imported fuel oil; (iii) The government will benefit from about US$394 million in royalties, taxes and other revenues which represent about 23% of the total project revenues; and (iv) The implementation of the project will provide employment of about 1,500 people during construction and about 200 people during operation.
IFC has several major roles to play in this project: (i) IFC would provide long-term financing, which is not readily available in the country for a domestic gas project; (ii) By supporting this anchor project, IFC would provide assistance to the further development of Pakistan’s gas infrastructure, supporting a form of energy that is more environmentally friendly, more efficient and cost-effective than the alternatives; (iii) IFC’s financing would enable LOPL to leverage its investment in the project thus facilitating the company’s efforts to pursue other opportunities in the country; and (iv) IFC’s financing would support the Government’s initiative to maximise gas use in order to meet increasing demand and generate savings in foreign exchange.
The project has a number of important development impacts: (i) It will assist with the optimisation of Pakistan’s energy potential because it will develop Pakistan''s gas reserves in order to help satisfy the country’s net demand for energy; (ii) The project will help reduce the country’s dependency on imported fuel oil; (iii) The government will benefit from about US$394 million in royalties, taxes and other revenues which represent about 23% of the total project revenues; and (iv) The implementation of the project will provide employment of about 1,500 people during construction and about 200 people during operation.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Dr. Robert Kenison
5th Floor, The Forum
G-20, Block-9, Khayaban-e-Jami,
Clifton, Karachi-75600, Pakistan
Tel: 92-21-583-8253
Fax: 92-21-583-8394
5th Floor, The Forum
G-20, Block-9, Khayaban-e-Jami,
Clifton, Karachi-75600, Pakistan
Tel: 92-21-583-8253
Fax: 92-21-583-8394