ISLAMABAD, Oct 25: The government of Pakistan on Monday signed the Condensate Oil Sale Purchase Agreement with joint venture partners of the Zamzama Gas Field, namely BHP Petroleum , Government Holdings (Pvt) Limited, PKP Exploration Limited and Eni Pakistan (formerly Lasmo).

The agreement was signed by Ahmed Waqar, Secretary, ministry of petroleum and natural resources, on behalf of the president of Pakistan, Sabir Hussain, Director General (Oil), Khurshid Anwar, Chief Executive Officer, Government Holding (Pvt) Limited, Phil Byrne, General Manager of BHP, and Wajahatullah, Principal Commercial Adviser. The ceremony was also attended by Minister of State for Petroleum and Natural Resources Mir Muhammad Naseer Mengal.

Under the agreement, the government will buy 1,700 barrels per day condensate oil produced from the Zamzama Gas Field and sell to ENAR Petroleum Services (Pvt) Ltd, Pak-Arab Refinery (Parco), National Refinery Ltd and Pakistan Refinery Limited.

The field has a capacity to produce up to 2,250 bpd condensate.

BHP joint venture will invest about $5 million for laying of a 40-km pipeline from the Zamzama Gas Field to Babuk Pumping Station of Parco for supplying the condensate.

The Zamzama Gas Field was discovered in April 1998, came on stream in 2001 and started commercial production in July 2003 to deliver up to 320 million cubic feet of gas per day to Sui Southern and Sui Northern Gas companies.

The ministry of petroleum and natural resources is trying to maximize oil and gas production in Pakistan. As a result of continuity of policies and initiatives taken in this regard, the petroleum sector made an unprecedented development during the last five years, according to an official announcement.

With the recent commissioning of three new gas fields - Zamzama, Bhit and Sawan - the oil import bill has reduced by about $500 million per annum and the Zamzama field is one of the main contributors.