OMV group finalizes Sawan field gas sales to Pakistani distributor

April 2, 2002
OMV AG's Pakistan unit has announced the finalization of a gas sales and pricing agreement to supply 170 MMscfd of gas to Sui Northern Gas Pipeline Ltd. (SNGPL) from Sawan field in Pakistan's Sindh Province.



By OGJ editors
HOUSTON, Apr. 2 -- OMV AG's Pakistan unit has announced the finalization of a gas sales and pricing agreement to supply 170 MMscfd of gas to Sui Northern Gas Pipeline Ltd. (SNGPL) from Sawan field in Pakistan's Sindh Province.

The South West Miano joint venture said the government of Pakistan has signed off on the agreement. A heads of agreement signed last year outlined the legal framework for commercial use of the gas field (OGJ Online, July 12, 2001).

For Phase 2, the JV plans to invest $100 million until production starts to deliver another 170 MMscfd to SNGPL by late 2003.

The JV, consisting of OMV 19.74%, Agip SPA 23.68%, Moravske Naftove Doly AS, 7.9%, Pakistan Petroleum Ltd. 26.18%, and the government 22.5%, will share investment and sales revenue.

OMV discovered Sawan field in January 1998. The JV declared the field commercial in December 1999 following 3D seismis studies and drilling of a successful appraisal well. OMV said gas reserves are 1.3 tcf (OGJ Online, Feb. 13, 2001).

Under the Sawan Phase 1 development, the JV already is investing $170 million to bring on stream 170 MMscfd for delivery to Sui Southern Gas Co. Lt. (SSGCL) via the existing Kadanwari-Nawabshah transmission line by the second quarter of 2003.

Earlier this year, OMV AG's Pakistan unit started up Miano gas field in the Thar Desert, aiming for production of close to 100 MMcfd by the end of January 2002. Gas is delivered to SSGCL at the Kadanwari treatment plant. (OGJ, Jan. 28, 2002, p. 54).