Pakistan Petroleum Limited (PPL) is likely to purchase entire interest of Tullow in Pakistan and Bangladesh after formal approval from the federal government, official sources told Business Recorder. PPL, a public limited company incorporated under the Companies Ordinance 1984 (XLVII of 1984), in line with its Corporate Strategy has embarked upon an aggressive domestic and international exploration programme including acquisition of oil and gas assets to replenish and possibly enhance the country's oil and gas reserves.

Tullow Oil, one of the largest privately owned groups in Ireland, has announced its intent to divest its entire interest in oil and gas assets in Pakistan and Bangladesh through corporate sales of its indirectly wholly-owned subsidiaries, Tullow Pakistan (Developments) Limited (TPDL) and Tullow Bangladesh Limited (TBL), both registered in Jersey. TBL has a 30 percent working interest in Block 9 (Bangora field) which produces total 100 mmcfd gas. Tullow adopted a two-step process, whereby, in the first step PPL was qualified as a preferred buyer to allow PPL to carry out further due diligence before submitting a firm/binding offer by mid-December, 2012.

Tullow E&P assets portfolio comprises of the following producing/exploratory assets: block 9 (Bangora filed) 30 percent, block 3370-13( Bannu West): North Waziristan Agency, Banu, Hangu, Kurram Agency 40 percent, block 28: District, Kohlu, Sibi, Hernai, Loralai, Barkhan 95 percent, block 2969-7(Kalchas) : District, Dera Bugti, Rajapur, Kohlu, 30 percent, block 3371-10 (Kohat): District Kohat, Hangu, Pershawar, Orakzai Agency ( Shekhan field) 40 percent and block 2968-3 (kohlu): District Kohlu, Dera Bugti and Barkhan.

For the purpose of evaluating the assets in Pakistan and Bangladesh and to determine the hydrocarbon potential in place and the possible upside in each block/ area, the PPL has appointed independent Technical, Financial, Legal and Accounting/Tax Consultants. Based on further due diligence being carried in stage-II, PPL's Financial Advisor will recommend binding values to bid for purchase of entire share capital of TPDL and TBL. The Board of Directors of PPL has given in-principle approval to evaluate both the Pakistan and Bangladesh assets leading to submission of bids.

Petroleum Ministry has requested the government to allow PPL to submit binding bid for Corporate acquisition of either or both Tullow Pakistan (Developments) Limited and Tullow Bangladesh Limited. Foreign Exchange requirements for acquisition/investment overseas on a repatriable basis to be provided against rupee cover by PPL from its own resources.

Copyright Business Recorder, 2012