Czech integrated energy player MND Group has sold its upstream assets in Pakistan and Yemen to Pakistan Petroleum. The Prague-based energy company, which is owned by the KKCG investment group, put the assets in the shop window this time last year. As part of the deal, Pakistan Petroleum is picking up a stake in OMV’s Sawan gas field, where output runs to about 200 million cubic feet per day of gas. The Karachi-based explorer is also gaining a boosted share in its own Barkhan gas block as well as stakes in Mari Gas Company’s Harnai and Ziarat blocks. In Yemen, MND E&P held a stake in Total’s Block 3 also part of the sale. The value of the deal was not disclosed, but MND Group said that Pakistan Petroleum had been the highest bidder. The Czech company added that both sides were “confident that the consideration paid fairly reflected the high value of the producing assets as well as the superior prospectiveness of the exploration licences”. The deal is being made as a corporate sale of London-registered MND Exploration & Production, which Pakistan Petroleum has renamed PPL E&P Europe. Although it has sold off the E&P arm, the Czech company is not exiting upstream activities. MND Group oil and gas director Miroslav Jestrabik said that the explorer planned to “use the substantial funds from the transaction” to help raise financing for its projects in central and eastern Europe. The company holds exploration and production assets in the Czech Republic, including shale acreage, as well as stakes in Georgian blocks and business in drilling and field services, terminals, gas storage and gas trading.
