By the OGJ Online Staff
LONDON, July 12 -- OMV Pakistan Exploration GMBH will lead development of the second phase of Sawan gas field in Sindh under a deal signed Wednesday between Austrian parent company OMV AG, Sui Northern Gas Pipeline Ltd., and the government of Pakistan.
The agreement for Sawan, inked with the OMV-led South West Miano Joint Venture, covers "all commercially important aspects" of the second phase development at the gas field.
According to Reinhart Samhaber, general manager of OMV Pakistan, the deal "will be followed shortly by fully termed gas sales and gas pricing agreements."
The SW Miano JV plans to invest $170 million during the next 2 years into the Sawan Phase 1 development to bring on stream 170 MMscfd of gas for delivery to Sui Southern Gas Co. Ltd. via the Kadanwari transmission line by the first half of 2003.
OMV expects to award the engineering, procurement, and construction contract for the gas processing facilities this autumn.
For Phase 2, the JV plans to spend $130 million to supply 170 MMscfd more gas to SNGPL by late 2003.
Investment and sales revenues would be shared by the SW Miano JV, consisting of OMV with 19.74%, Agip Exploration & Production Ltd. 23.68%, Moravske Naftove Doly AS 7.90%, Pakistan Petroleum Ltd. 26.18%, and Government Holdings Private Ltd. 22.50%.
Contract awards for Sawan Phase 2 are expected by mid-2002, allowing first gas to SNGPL to flow by the end of 2004.
OMV opened Sawan in January 1998. The field has proved and probable reserves of 1.3 tcf.