-File Photo

MILAN: Italy's Eni has strengthened its hand in Pakistan by agreeing to buy offshore gas acreage as the oil and gas major continues to channel cash into more profitable upstream activity.

In a statement on Thursday Eni said it had signed a deal with Pakistan and state oil company OGDCL to acquire 25 per cent and operatorship of the offshore Indus Block G licence, located in Pakistan's Indus Basin.

Eni is the leading foreign producer in Pakistan with an equity output of 58,000 barrels of oil equivalent per day (boed).

In September it announced a significant onshore gas discovery in a country which it is counting on as part of its strategy to develop assets and bring them to market rapidly.

Huge cost overruns and delays at Kashagan, the world's largest oil development, have raised questions about its ability to deliver large-scale projects on budget and on time.

Eni, the world's No. 7 oil company in terms of production, is selling non-core assets like gas transport group Snam  and Portuguese energy group Galp Energia to focus on oil and gas exploration.

The company, which produced 1.7 million boed in 2011, has said it is looking to add more than 1.3 million boed of new production by 2022.

Over the past year, Eni has dispelled some of the scepticism about its profitability and growth potential by clinching a deal with Russia's Rosneft and scoring exploration successes in Norway and Mozambique.

The 7,500-square-kilometre block in Pakistan is “in ultra deep water of an underexplored and promising area offshore Pakistan”, Eni said.

The consortium managing the block is composed of the two state companies OGDCL and Pakistan Petroleum, Eni and United Energy Pakistan Limited - each holding a 25 per cent stake.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A new war
Updated 01 Mar, 2026

A new war

UNLESS there is an immediate diplomatic breakthrough, the joint Israeli-American aggression against Iran launched on...
Breaking the cycle
01 Mar, 2026

Breaking the cycle

THE confrontation between Pakistan and Afghanistan has taken a dangerous turn. Attacks, retaliatory strikes and the...
Anonymous collections
01 Mar, 2026

Anonymous collections

THE widespread emergence of ‘nameless donation boxes’ soliciting charity in cities and towns across Punjab...
Afghan hostilities
Updated 28 Feb, 2026

Afghan hostilities

The need is for an immediate ceasefire and substantive negotiations, with the onus on the Taliban to rein in cross-border attacks.
Cutting taxes
28 Feb, 2026

Cutting taxes

PRIME Minister Shehbaz Sharif’s plan to cut direct taxes for businesses in the next budget acknowledges the strain...
KCR challenge
28 Feb, 2026

KCR challenge

THE Karachi Circular Railway is being discussed again. It seems that the project, or, rather, the hopes of it, are...