Sui Southern Gas Company (SSGC) has inked two gas sale and purchase agreement (GSAs), with the Orient Petroleum International Inc (OPII), for the Mirpurkhas and Khipro block Gas fields in Sindh. The GSAs, have preceded the Head of Terms (HOT) agreed earlier, envisages the supply of about 90 to 100 MMCFD (million cubic feet per day) of natural gas from the two blocks for a period of 15 years.
The Mirpurkhas block provides 30-MMCFD natural gas while the Khipro block Gas fields provide 60-MMCFD to SSGC. The supply of gas to SSGC would be received at two separate delivery points located at the Masu Valve Assembly and Tando Adam on the left bank of the River Indus.
Speaking on the occasion, the SSGC's Managing Director appreciated to conclude this long-term agreement with OPII, which would significantly improve the supply of natural gas in the SSGC system.
"As demand for natural gas continues to grow particularly in the industrial sector, we are glad that this additional volume is becoming available." He further said, "The GSA was the largest signed with any Pakistan company, which was a matter of great achievement and pride for Pakistan's oil and gas sector." "We are looking forward for further discoveries by OPII which will add more gas supply to SSGC's network", he added.
The Chairman of OPII, Sadruddin Hashwani said, "OPII is the first private sector company that has entered into the exploration and production (E&P) sector on a very strong footing. He showed dissatisfaction over "the privatisation of utilities, especially gas utility, which would create problems for future gas agreements with private sector gas exploration companies. This would also affect the future E&P and might hamper future gas purchase agreements", he added.
Presently, it is operating five producing assets and a number of exploration licenses. It has joint ventures with OGDCL, POL, AOC, Petronas, Bow Energy, ZPCL and GHPL.
The OPII has been successful in drilling of 22 exploratory wells in the two blocks as against the commitment of 19 wells which is unprecedented." He further stated: "It is also a feather in OPII's cap that it has succeeded in bringing these fields on production in a record time of six months".
The Chairman OPII, Sadruddin Hashwani, signed the formal agreement of 'Working Interest Owners' of the gas fields and MD-SSGC Munawar Baseer Ahmad, at the SSGC Head Office.