Austria's OMV and the UK's Hardy Oil & Gas are considering proposals to invest $350 million in developing its exploration concession in Sind province. The proposal follows a substantial gas discovery in the Southwest Miano concession in Khaipur district, Sind.

OMV, the operator of the field, has announced that it struck gas at the Sawan 1 well, the first exploration well drilled in the concession. The well had a flow rate of about 58 million cubic feet a day (cf/d) through a 62/64-inch choke at a wellhead flowing pressure of 3,600 psi.

The discovery will be appraised with additional drilling and 3D seismic studies. OMV says that the field could have reserves of 1 million million- 2 million million cubic feet (tcf). It could produce 400 million-450 million cf/d. Initial production is scheduled for 1999 with full production to begin in 2001-2. The field's sandy terrain and location near to industry pipelines with available capacity make the area easy to develop, Hardy says.

The licence was awarded in 1995 and is held by a consortium comprising OMV, with 25 per cent, Hardy, which holds 30 per cent, Pakistan Petroleum has a 30 per cent stake, Moravske Naftove Doly of the Czech Republic holds 10 per cent and the Pakistani government the remaining 5 per cent. The government may exercise an option to increase its shareholding to 25 per cent.