Hashoo Group to invest billions in oil, gas exploration

The group has also committed to making investment in offshore and shale gas exploration to overcome the energy crisis in the country.. PHOTO: FILE

ISLAMABAD: The Hashoo Group has made a comeback after a gap of five years as it is expected to pump billions of rupees into the upstream petroleum sector that will give a significant boost to the country’s economy.

Zaver Petroleum Corporation, an oil and gas exploration firm and a part of the Hashoo Group, signed a long-term Musharika facility worth Rs3.2 billion with Al Baraka Bank (Pakistan) on Friday.

Musharika is a partnership structure with profit and loss sharing implications that is used in Islamic finance instead of interest-bearing loans.

The group has also committed to making investment in offshore and shale gas exploration to overcome the energy crisis in the country.

During the previous government of Pakistan Peoples Party, Orient Petroleum Limited of the Hashoo Group had backed out of investment in the oil and gas sector by selling some exploration blocks to a foreign firm. However, Group Chairman Sadruddin Hashwani called it a joint venture with the foreign company.

After the Musharika agreement, Hashwani said they were the largest investor in the sector after Oil and Gas Development Company (OGDC). The group has drilled 65 wells with a massive investment so far.

He said Al Baraka Bank and Zaver Petroleum had a history of relations, which they renewed by agreeing on the Islamic mode of financing for the oil and gas sector.

He insisted that the group was making collective efforts to contribute to the economy and invest hundreds of millions of dollars.

“We are all partners who will bring prosperity and growth to Pakistan,” he said, adding they would drill two wells this year.

Zaver Petroleum Chief Executive Officer Anwar Moeen told media that the group would invest in shale gas exploration if the government offered them a good price.

There was potential in some of the fields and the group would explore if the government promised good incentives, he said.

At present, Zaver Petroleum is producing 18 million cubic feet of gas per day (mmcfd), 9,000 barrels of crude oil per day and 49 tons of liquefied petroleum gas.