British Petroleum (BP) has forwarded to its partners, including OGDC, United Energy Group Limited''s offer of $775 million for its stakes in Pakistan''s oil and gas sector. In December 2010, BP announced the sale of almost all its exploration and production assets in Pakistan to United Energy Group Limited (UEG). This sale is currently going through the regulatory process.
BP, in its written offer to the partners, said as per provision of the agreement it is sending UEG''s offer to them to either match it or leave the first right to buy stakes as partners. BP had got an offer of $775 million from UEG for its stakes in Pakistan''s oil and gas sector in December last and announced that it has accepted the offer and two parties will complete the process of the deal in due course.
As per contractual obligations, BP had to forward the accepted offer to its partners to either match or lose the first right to claim the stakes. Oil and Gas Development Company (OGDC), the Government Holding (Pvt) Limited (GHPL), Orient Petroleum of Sadaruddin Hashwani are BP''s major partners in the fields that it offered to UEG some two months back.
As per the exploration agreement, OGDC and other partners will be required to come back to BP within 15 days to match UEG offer or they will lose their first right to claim BP''s stakes in Pakistan''s oil and gas sector. BP''s decision to sell most of its assets in Pakistan has been seen as an unhealthy development.
Experts in oil and gas sector say that BP''s exit will make it difficult for Pakistan to go for offshore drilling in a big way. BP is known for its expertise in offshore drilling which has been a top priority of the government to find some big discovery to enhance its oil and gas production. BP decided to sell its assets in Pakistan as part of its global campaign to raise money to clean up the Gulf of Mexico oil spill and pay for damages.
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