ISLAMABAD (September 19 2006): The government and Sui Northern Gas Pipelines Limited (SNGPL) on Monday signed a gas sale and purchase agreement with a joint venture of Tullow Pakistan (Developments) Limited and Government Holdings (Private) Limited (GHPL).

Under the agreement, the joint venture will supply 30 million cubic feet per day (MMCFD) gas from Chachar field located in Jacobabad district to SNGPL by December 2006. The utility will supply gas to Wapda's Gaddu thermal power station, easing pressure on oil import.

Tullow is the operator of the gas field and holds 75 percent working interest in Chachar gas field while the remaining 25 percent is held by GHPL. The joint venture has invested over $6.5 million in exploratory efforts and is implementing a development plan with an estimated cost of $25 million.

Tullow Oil Plc is one of the leading independent international oil and gas exploration and production companies in Europe. It is quoted on the London and Irish stock exchanges and is a member of the FTSE 250 index. It has interests in over 90 exploration and production licences spread over 16 countries located in three core areas--NW Europe, Africa and South Asia.

In Pakistan, Tullow has been operating since 1990 and currently holds working interests in five exploration licences--two located in NWFP and three in Balochistan. Tullow has acquired over 2500 km of seismic data and has drilled 11 exploratory and 6 development wells.

It has been successful in making five discoveries as an operator. To date, Tullow has invested $180 million (gross) in oil and gas exploration and production activities in Pakistan and has plans to invest further $100 million (gross) over the next three years.

The gas sale and purchase agreement was signed by Ahmed Waqar, Secretary Petroleum and Natural Resources on behalf of the government of Pakistan, Richard A Lee, Country Director Tullow Pakistan (Development) Limited, Khurshid Anwer, Managing Director GHPL and Rashid Lone Managing Director SNGPL, Paul McDade Chief Operating officer of Tullow Oil Plc, who is currently visiting Pakistan was also present at the ceremony.

Amanullah Khan Jadoon, Minister for Petroleum and Natural Resources and Muhammad Naseer Mengal, Minister of State for Petroleum and Natural Resources were also present on the occasion. Later, the Tullow delegation called on the minister and exchanged views on future investment prospects by the company.

The minister briefed the delegation about the investment potential in the onshore and offshore exploration and asked the company to expand its exploration activities for the mutual advantage.

Copyright Business Recorder, 2006