British company Lasmo PLC has signed a revised agreement with Pakistan's Petroleum Ministry for the development of Bhit gas field in Sindh province.
Lasmo and its partners Kirthar Pakistan BV and Oil & Gas Development Co. will invest $260 million to develop the field, which will produce at a plateau of 235 MMcfd.
Previous announcements indicated the Bhit partners would invest $268 million in the field, which would produce 270 MMcfd of gas. The gas will be sold to state company Sui Southern Gas Co. Ltd. (OGJ Online, Oct. 11, 2000).
With this most recent agreement with Lasmo, the government concluded a contract revision exercise begun early this year.
Production from Bhit will begin in December 2002, and the field should reach its production plateau in 2003.
Originally discovered in 1997, Bhit field is estimated to contain more than 1 tcf of gas.
Karachi Electric Supply Corp. will consume most of Bhit's gas in its power plants in Karachi. The company estimates the net contribution to Pakistan in terms of taxes, royalty, and savings on fuel oil is $2 billion.
Lasmo holds 20% of the field, Kirthar Pakistan holds 40%, and OGDC holds 20%.
