A new era of private-to-private business in Pakistan’s gas sector has begun with the first Business-to-Business (BtB) deal under the Third Party Access rules. Universal Gas Distribution Company (UDGCL), a private company, will purchase gas from MOL Pakistan Oil & Gas Co. B.V., Pakistan Petroleum Limited, Government Holdings Private Limited and Oil & Gas Development Company Ltd. Pakistan for the initial supply of 14MMFCD gas from Mamikhel gas field, TAL Block, and distribute it to private consumers through the SNGPL distribution network, including world-leading energy players like Qatargas, ExxonMobil, Trafigura, Mitsubishi and ConocoPhillips.
The above development in the oil & gas sector is expected to alleviate gas shortages faced by the industry, help meet the country’s increasing gas needs, revive sick industries, and reduce the annual oil import bill by approximately $120 million.
We are excited to share that we have been engaged as legal counsel in this landmark deal for a consortium of banks and financial institutions in the extension of syndicated finance facilities to UDGCL. Our scope of work includes full financiers-side advisory including a comprehensive due diligence of UDGCL and all the project documents, preparation of all facility documents, creation of a security structure comprising more than a dozen charges and security interests including assignments, guarantees, liens, hypothecations and mortgages and a detailed due diligence of all immovable properties to be mortgaged.
Our team on this deal is being led by Nazif Ahmed (Head — Corporate) and Saim Hashmi (Senior Counsel), with assistance from Altan Ahmed (Senior Associate), Faiza Khan (Senior Associate) and other associates at the firm