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ISLAMABAD, March 6: Pakistan on Wednesday signed a gas pricing agreement with an Australian petroleum company for supply of up to 320 mmcfd of gas for 20 years.
Subsequently two separate gas sales and purchase agreements were signed by Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) with BHP-Billiton Petroleum of Australia.
The agreement cover the supply of up to 320 mmcfd of gas over the expected field life of 20 years, starting in 2003. The core areas of the Zamzama field to be developed has estimated proven and probable gross reserves of 1.7 trillion cubic feet (tcf).
The capital expenditure for commercialization of gas resources would cost $100 million. BHP’s share would be around $40 million. The joint venture partners Lasmo and Premier would sign the gas pricing, gas sales and gas purchase agreement later.
First production from extended well test commenced in March 2001 and the field is producing up to 100 mmcfd of gas, which is being supplied to the SSGCL under a provisional 21-month contract.
APP ADDS: Minister for Commerce and Trade, Abdul Razak Dawood said Wednesday, Australian gas excavation companies will be provided with conducive investment and working environment in Pakistan.
He stated this in a meeting with four-member Australian BHP Billiton Petroleum delegation led by Philip Aiken here.
Dawood apprised the delegation about the unprecedented investment opportunities in the oil and gas projects and the priority, which government attaches to the development of this sector.
He said Pakistan is blessed with ample gas reserves, which have been partly explored and about 40 per cent of energy requirements are being fulfilled through gas.
So there was an urgent need for further exploration and excavation of this valuable source.
The Minister lauded the efforts of BHP Billiton for successfully completing Phase-I development Programme of Zamzama gas field.
He said it is the fourth most productive gas field in Pakistan which is producing “320 mmcfd”, thereby adding 15 per cent to the current network gas supplies of Pakistan.
Razak Dawood also expressed his total confidence for providing smooth working conditions to BHP for undertaking the project of an overland transitional gas export pipeline connecting the vast gas resources of Iran to the large and rapidly growing markets of Pakistan and India.
He added that as these projects will serve as lifeline to Pakistan’s economy, therefore, all out efforts will be made to secure the investors confidence and their investment protected.
The leader of the delegation Phillip Aiken said that Zamzama Gas field will play an important role in the energy sector of Pakistan.
