Petronas acquires Pakistani block holdings

Pakistan has awarded an exploration and development license to units of Malaysian state firm Petronas and UK independent Lasmo PLC, while Petronas also acquired interests in and operatorship of another Pakistani block.


KARACHI�Pakistan has awarded an exploration and development license to units of Malaysian state firm Petronas and UK independent Lasmo PLC, while Petronas also acquired interests in and operatorship of another Pakistani block.

Pakistan signed an agreement awarding East Kadanwari Block No. 2669-2�covering 1,022 sq km in Sukkur and Khairpur districts�to Petronas Carigali (Pakistan) Sdn. Bhd. and Lasmo Oil Pakistan Ltd. The block was awarded through competitive bidding.

The companies also signed partnership agreements for the block. Petronas will be operator block with a 57% working interest, while Lasmo will hold 38%, and state entity Government Holdings will have a 5% carried interest.

Under the accord, Petronas and Lasmo must spend $3.5 million on the block within 3 years. Plans include the acquisition of 150 line-km of 2D seismic and the drilling of a well.

Through a separate accord, Petronas acquired from Orient Petroleum Inc. a 75% working interest in Mehar Block in Dadu and Khuzdar districts. Under the Mehar accord, Petronas will be operator of the block with a 75% working interest, while Orient Petroleum will retain 20% and Government Holdings a 5% carried working interest.

The joint venture will spend $4.3 million on the Mehar block over 3 years. It will acquire 250 line-km of 2D seismic data and will drill two wells.

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