OMV, Eni, PPL ink deed to develop Latif gas field

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  1. farhan_9909

    farhan_9909 Tihar Jail Banned

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    KARACHI:
    OMV Pakistan – subisidary of Austria largest company OMV Aktiengesellschaft – and its partners Eni (33.33% interest) and Pakistan Petroleum (33.33% interest) on Thursday signed a lease deed for the development of Latif gas field in Sindh.

    Latif field production will contribute around 6,000 barrels of oil equivalent per day to OMV in 2014 and therefore be a key contributor to reaching core country status in Pakistan.

    OMV Executive Board Member responsible for exploration and production Jaap Huijskes said, “This is a clear win-win situation. Pakistan receives the confirmed Latif gas reserves at a very low price, even the incremental production will be delivered at prices well below competitive fuels.”

    “Nevertheless the new pricing guidelines as per Petroleum Policy 2012 for incremental production provides OMV and joint venture partners with sufficient incentive to make new investments to prove and develop new reserves,” he said on Thursday, adding that on the basis of this new commercial agreement OMV will initiate drilling four development wells immediately instead of two that were committed in the field development plan.

    The total cost for development is $142 million. It was planned to commence production from Latif field through Sawan plant in late 2013 with the aim to achieve a plateau production of around 100 million of standard cubic feet per day.

    The development will comprise drilling of new wells, and construction of a 50 kilometre pipeline to transport Latif gas to OMV operated Sawan gas plant where Latif gas will be processed and thereafter delivered to customers.

    Sawan plant is a state-of-the-art sour gas processing plant which was constructed, and has been operated by OMV since start-up in 2003. Sawan field’s own production is under natural decline which will provide processing capacity for Latif gas production in Sawan plant.

    Earlier, Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain said that companies operating in the up-stream oil and gas sector should take full advantage of the incentives offered in the Petroleum Policy 2012 .

    Published in The Express Tribune, October 5th, 2012.

    OMV, Eni, PPL ink deed to develop Latif gas field – The Express Tribune
     
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