August 21, 2002	Wednesday	Jamadi-us-Saani 11,1423

ISLAMABAD, Aug 20: The government on Tuesday granted licence to a joint venture for exploration of petroleum in Manchar block of Dadu district.

The licence was given to the joint venture of Eni through its wholly owned subsidiary — Lasmo Oil Pakistan Limited (55%), Pakistan Oilfields Limited (22.5%) and Mari Gas Company Limited (22.5%) — over block No 2667.5 (Manchar), covering an area of 2435.35 square kilometres in district Dadu, Sindh. It is approximately 200 km north of Karachi.

The block falls in prospectivity zone III, having the same sedimentary basin as that of adjacent Zamzama gas field. It is close to Bhit gas field. Lasmo will be the operator in anchor block. Under the agreement the joint venture partners will make a firm investment of at least $6.7 million with an additional contingent investment of $5.55 million based on the outcome of results in the first two years.

Lasmo also has working interests in Kadanwari, Bhit, Zamzama, Miano and Sawan gas fields. The Kadanwari gas field has been supplying gas to the national market since 1995, while the Bhit gas field is expected to commence production shortly. Within the next 18 months, Lasmo’s net production from all its Pakistan assets is projected to rise from the current 8,000 BOEPD (barrels of equivalent per day) to in excess of 35,000 BOEPD.

Mari Gas Company is a local company incorporated in 1984 and is currently operating a gas field at Dharki, district Sukkur, with original recoverable gas reserves of 7.54 TCF (trillion cubic feet).

The field is currently producing 426 MMSCFD (million cubic feet per day) from shallow reservoir only. Pakistan Oilfields Limited is one of the oldest Pakistani exploration and production company established in 1950 with Attock Oil Company as the parent company. POL operates nine oil and gas producing fields, in addition to its shares in five non-operated fields. POL’s current gross production is about 10,000 BOEPD, 45 MMSCF gas per day and around 200 tons per day of LPG.

The licence and the petroleum concession agreement were signed by M. Abdullah Yusuf, Secretary, Petroleum and Natural Resources, on behalf of the President Islamic Republic of Pakistan; G.A Sabri, Director General, Petroleum Concessions; Mike James Buck, Managing Director, Lasmo Oil Pakistan Limited; Lt Gen (retd) Muhammad Afzal Janjua, Managing Director, Mari Gas Company Limited; and Shuaib Anwar Malik, Chairman, Pakistan Oilfields Limited.