08-05-01 Shell said that it is seeking to end its Pakistan joint venture with Premier Oil by proposing to swap a 49.9 % stake in the joint venture for an increased holding of up to 28 % of Premier Oil's Bhit gas field. The deal is subject to approval by the Pakistani government and a final agreement between the two companies, Shell said.
"Shell... has proposed an arrangement with Premier Oil to exchange its 49.9 % holding in Premier and Shell Pakistan for an increased holding from 20 % to 28 % in the Bhit development project in the Kirthar concession," it said. The two companies struck a deal three years ago to boost exploration in Pakistan by forming the joint venture.

The Bhit field's reserves of 1 tcf makes it one of the largest discoveries in the last five years. Lasmo of the UK holds a major 50 % stake in the field. Industry sources said Shell, which has forayed into the downstream business in Pakistan, was looking to lessen its exposure in exploration activities and the move could be part of the strategic decision.
Shell statement also quoted company Vice Chairman Jeroen van der Veer, who said that the company is eying the privatisation of oil and gas companies by the Pakistan government. Pakistan plans to privatise most of its telecom, oil and gas concerns by June 2002.