ISLAMABAD, Sept 18: The government of Pakistan and Sui Northern Gas Pipeline Limited signed a gas sales and purchase agreement with a joint venture comprising Tullow Pakistan (Developments) Limited and Government Holdings (Private) Limited (GHPL) in a ceremony held here on Monday.

According to a press release, under the agreement the joint venture would supply 30 million cubic feet per day (mmcfd) from Chachar gas field located in Jacobabad district of Sindh to SNGPL by December 2006. SNGPL will supply this gas to Wapda’s Guddu Thermal Power Station, easing off pressure on imported oil.

Tullow is the operator of this gas field and holds 75 per cent working interest in Chachar gas field, while the remaining 25 per cent is held by GHPL. The joint venture has invested over $6.5 million in exploratory efforts and is implementing a development plan of an estimated cost of $25 million.

Tullow Oil Plc is one of the leading independent international oil and gas exploration and production companies in Europe. It is quoted on the London and Irish stock exchanges and is a member of the FTSE 250 Index. Tullow has interests in over 90 explorations and production licences spread over 16 countries located in three core areas -- NW Europe, Africa and South Asia.

In Pakistan, Tullow has been operating since 1990 and presently holds working interests in five exploration licences -- two located in NWFP and three in Balochistan. Tullow has acquired over 2500km of seismic date and drilled 11 exploratory and six development wells. It has been successful in making five discoveries as an operator.

To date Tullow has invested $180 million (gross) in oil and gas exploration and production activities in Pakistan and has plans to invest a further $100 million (gross) over the next three years.

The gas sales and purchase agreement was singed by Ahmad Waqar, Secretary, Petroleum and Natural Resources, on behalf of the government of Pakistan, Richard A Lee, country manager, Tullow Pakistan (Development) Limited, Khurshid Anwar, managing director, GHPL, and Rashid Lone, managing director, SNGPL.