U.K. oil firm Lasmo plc is due to sign several key accords with the Pakistani government this week, according to official sources on November 21st.
The agreements, which would allow Lasmo to produce natural gas from a recent discovery in the Bhit field, could be signed on November 25th. The deals include gas pricing, gas sales and pipeline development for the Bhit field, located in the Kirthar block in the southern Sindh province.
The field is estimated to contain up to one trillion cubic feet (tcf) of gas and is set to come on stream by 2002. Lasmo owns a 40 percent stake in the field, with Premier Shell Pakistan (PSP) also having a 40 percent stake and state-run Oil and Gas Development Co. Ltd. (OGDCL) holding the remaining 20 percent.
Lasmo, PSP and OGDCL plan to invest $250 million in the field over the next two years, with the majority of the capital supplied by Lasmo.
Since 1996, there have been seven major gas discoveries in Pakistan, including Bhit, estimated to contain total reserves of nine tcf of gas.
The fields have been largely undeveloped to date, due to disagreements between oil companies and the government over pricing.
The new agreements will remove any obstacles preventing the development of the Bhit field and should pave the way for similar deals concerning the other fields. Pakistan has been trying to boost its energy production by increasing foreign investment in all areas of development and infrastructure.
