Two significant gas discoveries have been made in separate concessions by British Gas and Austria’s OMV. Further tests are necessary before either find can be declared commercial, but British Gas is optimistic and OMV is negotiating government participation details.

The first well drilled by British Gas at block 34 in central Pakistan, Savi Rahga, showed a maximum flow rate of 16 million cubic feet a day of gas and 700 barrels of condensate a day from an interval of 82 metres. ‘The analysis indicates high BTU gas of pipeline quality with approximately 1 per cent carbon dioxide,’ British Gas says. It will deepen the well after tests are complete. The well is 35 kilometres from Dodhak gas condensate field, which has gas reserves in commercial quantities and is to come onstream in mid-1995.

British Gas is the operator and holds 50 per cent of the concession. The remainder is divided between Pakistan Petroleum (PPL), with 30 per cent, Ireland’s Tullow Oil, with 15 per cent, and the local Oil & Gas Development Corporation (OGDC), with 5 per cent.

OMV’s gas find is located in block 20 in the middle Indus gas province. Its first well there, Miano 1, tested at 35.3 million cubic feet a day, but reserves have not been determined yet. ‘The commerciality of the discovery pretty much depends on the gas price and government share which are still under negotiation,’ an OMV official says. The government is entitled to a maximum equity share of 52 per cent in the production phase, but OMV would like to reduce this substantially. A new energy policy, which gives more favourable terms to private companies, does not apply to licence agreements concluded before January this year (MEED 8:4:94).

Two appraisal wells are to be drilled in block 20 from mid-August. OMV, the block operator, holds 35 per cent and its partners are the UK’s Hardy Oil & Gas and PPL with 30 per cent each, and OGDC with 5 per cent.