Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that the government is negotiating with Italian oil/gas giant Eni to import 0.75 million tons of Liquefied Natural Gas (LNG). Talking to a group of media persons here on Thursday while participating in the 25th ceremony of Austrian Oil and Gas Exploration and Production (E&P) company OMV Pakistan, he said that the ENI will supply 6 LNG ships per annum to Pakistan.
Responding to a question he said that the Italian company will supply LNG below 13.37 percent of the crude oil price. The minister while congratulating OMV over completing 25 years in Pakistan assured all the foreign companies of full government support and hoped that OMV will complete another 25 years in Pakistan. He said that there was a huge gas supply/demand gap in Pakistan and the country was striving hard to bridge the gap through imported LNG and further exploring local oil and gas reservoirs. He said that Pakistan has huge potential of tight, shale and conventional gas. He said that the government of Pakistan was offering most attractive wellhead oil/gas prices and international as well as local firms need to take the advantage of the situation.
Earlier speaking on the occasion OMV Chairman of the Executive Board and CEO Aktiengesellschaft informed the participants that the company started working in Pakistan in 1991 and within two years it made first discovery Miano field. From 1991 to date the company has expanded operations from Sindh to Balochistan and Punjab. OMV at present was producing 8% of Pakistan total natural gas and has invested $2.5 billion in the exploration activities, during this year the company is investing $45 million and will increase the investment.
In the years to date OMV (Pakistan) has established itself as the largest international gas producer in Pakistan with an operated volume of more than 110,000 barrels of oil equivalent per day from Kadanwari-Miano and Sawan fields. This represents about 16% of the total gas produced in Pakistan.
General Manager OMV Pakistan speaking on the occasion said that the company made first significant achievement at Miano gas reservoir in the Thar Desert of Sindh province discovered in 1993, in 1998 gas discovery was made at Sawan gas field also located in Sindh. He added that parallel to the Sawan development OMV also took over the operator-ship of the Kadanwari Gas Processing Plant on 1stJanuary 2003 from Lasmo, currently ENI. OMV remained quite aggressive on new developments and Kadanwari plant gas processing capacity was enhanced to 232 MMscfd while Sawan plant capacity has been enhanced to 400 MMscfd. To further meet raw gas requirements development drilling was continued successfully for both fields.
OMV is conscious of its adherence to its outlined policies, standards and most importantly, the local laws. Company's Health, Safety and Environmental (HSE) standards are parallel to the highest international level and second to none in the local perspective. OMV has strong commitment to reduce emissions to the environment. To achieve the same an "Emission Reduction" project has been initiated for Kadanwari Plant. For Sawan plant, preliminary study is being initiated.