July 4, 2003	Friday	Jumadi-ul-Awwal 3,1424

PARIS, July 3: Pakistan on Thursday signed first-ever production sharing agreements for petroleum exploration in two blocks located in ultra-deep waters of Indus Delta with consortium of companies led by the largest French multinational Total.

Petronas Cargali of Malaysia, OMV of Austria, OGDCL and Mari Gas Company Limited of Pakistan are the other partners.

The agreements were signed by the secretary, Petroleum and Natural Resources and witnessed by Director General Petroleum Concession G.A. Sabri, President of Total Exploration and Production Christophe de Margerie, head of Petronas Cargali Middle East and Asia Region, Mohamad B. Ismail, general manager of OMV Pakistan, Dr. Werner Ladwein, managing director of OGDCL Najam K. Hyder, managing director of Mari Gas Limited Lt. Gen. (R) M. Afzal Janjua, and CEO of Government Holdings (Pvt) Limited, Khursheed Anwar.

President General Pervez Musharraf graced the occasion with his presence.

The first agreement was for purpose of petroleum exploration in Offshore Indus Block “G” No. 2265-1 covering an area of 7,466 Kilometres while the other was for Offshore Indus Block “H” No. 2165-1 covering an area of 7,130 kilometres, both located in Indus Delta south of Karachi at a distance of around 200 kilometres in the water-depth ranging between 1,700 to 3,400 meters.

Total holds 40 per cent interest in the group with operatorship while Petronas Carigali enjoys 30 per cent equity, OMV 15 per cent, OGDCL 10 per cent and Mari Gas 5 per cent.

These Blocks lie in physically challenging environments where cutting edge technologies would be employed.

As a part of firm work obligation, the consortium will drill at least one exploration well during upcoming fair-weather window starting October 2003 which will involve investment of over $30 million.

This will be the first-ever well drilled in the ultra-deep waters of Pakistan which, in the event of commercial discovery, would not only lead to further investment of $2-3 billion for field development, but would also provide fillip to petroleum exploration in vast highly under explored offshore areas of Pakistan, the true potential of which is yet to assessed and realized.

With the signing of these agreements, Total and its joint venture partners have reaffirmed their desire to play an active part in the economic development of Pakistan.—APP