A Joint Venture Between Esso And Mobil

2418 Words Mar 16th, 2015 10 Pages
Pak Stanvac a joint venture between Esso/Mobil in 1957 decided to explore the Mari Gas field near the district of Daharki (a remote area located in Upper Sindh province of Pakistan). Due to the rich elements found, in 1964 Esso decided to construct a Urea plant, which subsequently led to the emergence of Esso Pakistan Fertilizer Company Limited. The company had a 75%-25% ownership, split between Esso & the general public respectively. In 1968 the now known as the world largest Urea plant began its production. With an annual production capacity of 173,000 tons valued at US $43 million it was the single largest foreign investment by a multinational corporation in Pakistan at the time. In 1978 as part of its international name changing scheme Esso became Exxon Chemicals Pakistan Limited. However after successfully running a multi-million dollar venture for over 20 years, in 1991 Exxon decided to globally divest its fertilizer business. Hence in 1991 what is now known as the most successful employee buyout in Pakistan (then Exxon employees along with various top financial institutions bought 75% of Exxon’s equity) led to the emergence of “Engro Chemicals Pakistan Limited”. The name “Engro” means energy for growth and was also the name of the top fertilizer brand of Exxon. “As the nation’s first branded fertilizer manufacturer, it helped modernize the country’s traditional farming practices and improve farm yields, directly impacting the quality of life for farmers and…

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