Shell seeks to end Pakistan joint venture with Premier Oil
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.
