The government on Monday signed condensate oil sale-purchase agreement with BHP Petroleum, partner for Zamzama gas field. Its other partners are The Government Holdings (Pvt) Limited, PKP Exploration Limited and ENI Pakistan. The Minister of State for Petroleum & Natural Resources, Mir Muhammad Naseer Mengal witnessed the signing ceremony.
Under the agreement the government will buy 1,700 barrels per day condensate oil produced from Zamzama gas field and sell to the ENAR Petroleum Services (Pvt) Ltd, Pak-Arab Refinery (Parco), National Refinery Limited, Pakistan Refinery Limited. This field has the capacity to produce up to 2,250-bpd condensate oil.
BHP joint venture will invest about 5 million dollars for lying of 40-km pipeline from Zamzama gas field to Babuk pumping station of Parco for supplying of condensate oil.
Zamzama gas field was discovered in April 1998, which came on stream in 2001. It started commercial production in July 2003 to deliver up to 320 million cubic feet of gas per day to the Sui Southern and Sui Northern gas companies.
An official handout issued here said that the ministry of petroleum & natural resources is taking every effort to maximise oil and gas production in Pakistan.
As a result of continuity of policies and far reaching initiatives taken in this regard the petroleum sector made an unprecedented development during the last five years.
With the recently commissioning of three new gas fields namely Zamzama, Bhit and Sawan, the oil import bill has reduced by about five billion dollars per annum and the Zamzama gas field is one of the main contributors.
The agreement was signed by Ahmed Waqar, Secretary Ministry of Petroleum & Natural Resources on behalf of President of Pakistan, Sabir Hussain Director General (Oil), Khurshid Anwar, Chief Executive Officer Government Holding (Private) Limited, Phil Byrne, General Manager BHP and Wajahatullah Principal Commercial Advisor.