By an OGJ correspondent
KARACHI, Oct. 28 -- Pakistan has issued an oil exploration license for Block 2568-11 (Nawabshah) to a joint venture of Tullow Oil PLC subsidiaries Tullow Pakistan (Developments) Ltd. (operator with 45% ownership interest) and Tullow Pakistan (Operations) Private Ltd., 25%, and Austria-based OMV AG unit OMV (Pakistan) Exploration GMBH 30%. The block, which lies in Prospectivity Zone III, covers an area of 2,335 sq km in Sindh province.
The parties simultaneously signed petroleum concession and joint-operating agreements. The JV is obligated to carry out geological and geophysical studies, a 300 line km seismic acquisition, and the drilling of one exploration well during Phase I of the initial 3-year term, with a minimum expenditure obligation of more than $6.2 million.
Tullow has been involved in oil and gas exploration and production activities of Pakistan since 1990 and has acquired over 2000 km of seismic area and drilled 14 exploratory and developments wells. Two of the gas fields are already supplying 40 MMcfd of gas to Pakistan Water & Power Development Authority.
OMV has been operating in Pakistan since 1990, and has made two significant gas discoveries: Miano and Sawan in Sukkur and Hairpur districts, resectively.
Miano gas field currentlysupplies 110 MMcfd gas to Sui Southern Gas Co.'s pipeline system. Sawan was discovered in 1998, and OMV is building a gas plant necessary for supplying gas from this field to Sui Southern Gas Co. and Sui Northern Gas Co. Ltd. systems.
OMV also is active in the downstream oil sector and has a 10% shareholding in Pak Arab Refinery Ltd., which presently owns the refinery at Mehmood Kot near Multan.
