Union Texas Blocks (6173 bytes)
Pakistan has granted an exploration license on the 2,700 sq mile Eastern Sindh block in Sindh province to a group led by a unit of Union Texas Petroleum Holdings Inc. (UTP), Houston.
The group at yearend 1994 was negotiating a concession agreement for the license area with the intent of concluding the agreement before starting exploration on the tract. Geological studies under the exploration license are expected to begin in first quarter 1995.
Union Texas Pakistan Inc. (UT Pakistan), with a 70% interest in the exploration license, is to operate the Eastern Sindh tract. The block is in Southeast Pakistan, east of the company's Badin I and Badin 11 blocks, also in Sindh province.
Other Eastern Sindh group members and their shares of interest in the exploration license are Edison Gas SpA, Milan, Italy, with 25% and the government of Pakistan with 5%.
Terms of the exploration license require a minimum work commitment of $1.03 million during 2 years, with an extension into the third year based on a commitment to drill a wildcat on the tract. Participation interest of the Pakistan government is to increase in the event of a commercial discovery.
UTP Vice Pres. William M. Krips said the Eastern Sindh block is an excellent exploration opportunity in a very productive part of Pakistan.
"Successful exploration in the Eastern Sindh block will complement the oil and gas production infrastructure in our Badin concessions, which currently supply about 33% of Pakistan's total domestic oil output and about 10% of its gas production," Krips said.
UT Pakistan is operator of concessions in the Badin area where 106 exploration and appraisal wells have been drilled since 1977, including 59 successful wells. More exploratory drilling is planned this year.
UT Pakistan at yearend 1994 was producing a gross average of more than 18,700 b/d of oil and about 165 MMcfd of gas on the Badin I concession. The company and the Occidental Petroleum (Pakistan) Inc. unit of Occidental Petroleum Corp. each holds a 30% interest in the Badin I concession and Pakistani state oil company Oil & Gas Development Corp. (OGDC) the remaining 40%.
UT Pakistan in September 1994 announced a 3 year extension of the Badin II exploration concession, which surrounds the Badin I area. Operator UT Pakistan and Oxy Pakistan each holds a 25.5% interest in the Badin II concession and OGDC 24%.
Copyright 1995 Oil & Gas Journal. All Rights Reserved.