OMV of Austria

The company first discovered gas in 1993 at the Miano gas field in Block 20 in the Sukkur district in the Middle Indus basin. Last year, it signed an agreement to supply the gas to Sui Southern Gas Company (SSGC). The gas will be transported through a 25-kilometre pipeline to the Kadanwari gas purification plant, operated by Lasmo. It will then be injected into SSGC's existing network in the area. Production from this field is expected to start this year. Initially, about 80 million cubic feet a day (cf/d) will be made available to the utility.

OMV has also discovered gas at Sawan-1, in the Southwest Miano concession in the Khaipur district. Long-term production tests indicate the field has resources of at least 1 trillion cubic feet (tcf). The company says the field's sandy terrain and location near industry pipelines with ample capacity will make it easy to develop once a gas sales agreement with SSGC is concluded.

OMV has also recently moved into downstream activities by acquiring 10 per cent of the shares of the Pak-Arab Refinery Company, which is building a refinery at Mahmood Kot, in Punjab.

BHP Petroleum of Australia

The company first discovered gas in 1998 at the Zamzama-1 well, located in the Dadu concession in Sind. The exploration licence was acquired in 1995 with the local Monument Resources (23.75 per cent), Premier Exploration (23.75 per cent) and Government Holdings(5 per cent). A second well, Zamzama-2, was drilled to assess the size of the find. It is understood there could be up to 2 tcf of natural gas at the field. The company was also involved with plans for an estimated $2,700 million gas pipeline from Iran to Pakistan, but pulled out after discovering gas at Zamzama to concentrate on developing local production. BHP Petroleum says it is close to signing a gas pricing agreement with SSGC that will allow the field to be developed.

Lasmo of the UK

Since winning the Tajjal exploration licence in 1987, the company has grown to be the largest independent holder of local acreage and the most active explorer in Pakistan. It operates the Kadanwari gas field, located 330 kilometres northeast of Karachi, and has established a gas processing facility.

It also operates the Bhit gas field in the Kirthar concession, in western Sind. Last March, the company discovered a second field at the concession and subsequently obtained an interest in the Zamzama field through the acquisition of the UK's Monument Oil & Gas. The company says both fields are less than50 kilometres away from the Bhit field and this should make their development straightforward. Discussions on a gas sales agreement with SSGC are expected to be completed shortly. The capital cost of developing the field is estimated at $280 million. Delivery of the first gas is targeted for mid-2002. A peak production rate in excess of 250 million cf/d is expected.