ISLAMABAD, July 17: The government on Wednesday granted a petroleum exploration licence to a joint venture of local and foreign companies to undertake exploration activities in Sukkur and Khairpur districts of Sindh.

The joint venture comprising OMV of Austria, Lasmo (MP) of Italy and Pakistan Petroleum Limited (PPL), a local public sector company, would hold 33.33 per cent shareholding each. It would carry out exploration activities in South-West Miano-II block No 2668-5, spread over an areas of 1240.77 square kilometres.

The three companies also separately signed petroleum concession and joint operating agreements. OMV would be the operator of the joint venture.

The joint venture is required to carry out 200 line kilometres of seismic survey and drilling of one exploration well during the first phase of initial term of three years with a minimum expenditure of $5.1 million.

OMV has been operating in Pakistan since 1990, and made two significant gas discoveries — Miano and Sawan in Sukkur and Khairpur districts. Miano is currently supplying 110 mmcfd of gas to Sui Southern Gas Company.

Sawan was discovered in 1998 and OMV is presently building a gas plant necessary for supplying gas from this field to the SSGC and SNGPL systems. OMV also has 10 per cent shareholding in Pak- Arab Refinery Limited (Parco). Lasmo is part of the ENI group of companies.

PPL is the oldest oil and gas exploration and production company with 93 per cent government-owned shareholding. It has been active in exploration and production in the country since early 1950s and is the largest gas producer in Pakistan.

Dr Werner Ladwein, general manager, OMV; Mike Buck, managing director, Lasmo; and Saeed Akhtar, deputy managing director of PPL, signed the agreements on behalf of their respective companies.