BHP Billiton to develop Pakistan's Zamzama gas field

Mar 06, 2002 01:00 AM

Australian resources giant BHP Billiton said it would proceed with the phase one development of the Zamzama gas field in southern Pakistan, which has been producing under an extended well test since March 2001. The development decision follows the signing of separate gas sales contracts and a gas pricing agreement with the Pakistan government, the Sui Southern Gas Co and Sui Northern Gas Pipelines.

The agreements cover the supply of up to 320 mm cfpd of gas over the expected field life of 20 years from 2003. The field, in Sindh province, is currently producing up to 100 mm cfpd, which is being supplied to Sui Southern Gas under a 21-month contract. The core area of the field to be developed contains gross reserves of 1.7 tcf, of which BHP Billiton's share is around 650 bn cf.
BHP Billiton's share of the $ 100 mm capital cost of the project will be around $ 40 mm Zamzama is 47.5 % held by BHP Billiton, with ENI subsidiary Lasmo holding 23.75 %, PKP Exploration holding 23.5 % and the Pakistan government holding 5 %. The government has the right to acquire an additional 20 % equity, after which the partnership would comprise BHP Billiton (38.5 %), PKP (18.75 %) and Lasmo (17.75 %).

BHP Billiton Petroleum president Philip Aiken said the success of the Zamzama EWT had provided the impetus to develop the field. The project will require two additional processing trains and the drilling of at least three development wells. A condensate flow of about 2,000 bpd will be exported through a small pipeline to nearby pipeline infrastructure. Zamzama is Pakistan's fourth largest gas field.

Source: Platts
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