December 6, 2013 - 11:30 am (CET)
- OMV completes development of Latif gas field
- OMV finalizes field development (phase 1) of the Mehar gas condensate field
- Latif and Mehar will contribute over 10,000 boe/d to OMV production in 2014
In October 2013 – after an execution phase of only one year – OMV completed the development of the Latif gas field, located in the Sindh Province of Pakistan. OMV is the operator of the Latif concession and holds an interest of 33.34%. The gas field developments will double OMV’s net production from Latif to 6,200 boe/d in 2014.
In November 2013, OMV started commissioning the Mehar field gas condensate processing facilities located in the very west of the Sindh Province of Pakistan close to the border with Baluchistan. OMV is the operator of the Mehar concession and holds an interest of 59.2%. Mehar (phase 1) full production will come on stream by year-end 2013 and deliver production of 4,300 boe/d net to OMV in 2014.
The Latif gas field was discovered by OMV in 2007 and started production under extended well testing arrangements in late 2008. It is located next to the major OMV operated gas plants in Kadanwari and Sawan. Following the approval of the field development plan in June 2012, the Latif field was fully developed with the drilling and completion of four new wells, construction of a new ~50 km gas pipeline to connect Latif field with Sawan plant, reception and metering facilities at Sawan and installation of wellhead compression facilities currently in progress..
The Latif field development decision, stalled for some time, was declared economically feasible due to the new 2012 Petroleum Policy of Pakistan (effective September 2012). This policy provides higher prices for new discoveries and for investments leading to incremental production over and above the reserves approved and certified. OMV operates Latif joint venture with the partners ENI and PPL having 33.33% stakes each. Gas is being supplied equally to the domestic gas distribution companies SSGCL and SNGPL.
The Mehar Exploration License and Development and Production Lease was acquired by OMV as part of the acquisition of the entire share capital of Petronas Carigali (Pakistan) Ltd (renamed after acquisition to OMV Maurice Energy Limited) in July 2011. The Mehar development included the drilling of one additional production well, completion of three production wells, and the construction of a central gas and condensate processing plant in Mehar.
Gas will be exported via a 60 km pipeline to the SSGCL network; condensate will be sold to the PARCO refinery. Stabilized condensate will be trucked to Karachi until completion of a condensate pipeline which is currently in the final planning phase. OMV’s joint venture partners in Mehar are GHPL (25%), OPL (11.8%) and ZPCL (4%).
Jaap Huijskes, OMV Executive Board member responsible for Exploration and Production: "I am very happy that the Latif and Mehar developments are being concluded and that we are seeing the positive production impact at the end of this year. For me the approval of the pricing incentive in Latif by the Government of Pakistan is an important and encouraging statement that the concerns of investors in the oil & gas sector about profitability of their projects are taken seriously."
With Group sales of EUR 42.65 bn and a workforce of around 29,000 employees in 2012, OMV Aktiengesellschaft is Austria’s largest listed industrial company. In Exploration and Production, OMV is active in two core countries Romania and Austria, and holds a balanced international portfolio with a production of around 303,000 boe/d in 2012. In Gas and Power, OMV sold approximately 437 TWh of gas in 2012. In Austria, OMV operates a 2,000 km long gas pipeline network with a marketed capacity of around 103 bcm in 2012. In Refining and Marketing, OMV has an annual refining capacity of 22 mn t and as of the end of 2012 approximately 4,400 filling stations in 13 countries including Turkey.
OMV (Pakistan) Exploration GmbH and OMV Maurice Energy Limited
OMV (Pakistan) Exploration GmbH, a 100% owned subsidiary of OMV Aktiengesellschaft, started exploration activities in the Province of Sindh in 1991. The first significant gas discovery was made at Miano in the Sukkur District in eastern Sindh province in 1993, followed by the Sawan discovery in 1997. Further discoveries, Latif and Tajjal gas fields, were made in 2007. In 2011, OMV Maurice Energy GmbH acquired Petronas Carigali (Pakistan) Ltd (after acquisition renamed to OMV Maurice Energy Limited), which provided access to the additional fields (Mehar, Rehmat, Saqib) and exploration blocks. At present, the OMV holds an interest in eight exploration blocks in Pakistan. OMV is known in Pakistan as a socially responsible company with the highest safety and ethical standards. The community development programs in its concession areas focus on education, health, and revenue generation, and have received international awards and recognitions.
For further information, please contact: