The discovery has opened up new exploration opportunities in the area, company says
VIENNA: Austrian oil and gas company, OMV, claimed to have discovered new gas reserves at the Latif exploration block in Sindh, a press release issued by the company stated.
The Latif South-1 well had a gas throughput of 2,500 barrels of oil equivalent (boe) a day during testing, the company said in a statement.
“We are very pleased with this exploration success. The appraisal and development of this discovery will potentially enable us to enhance the production in Pakistan,” OMV Executive Board Member responsible for Upstream, Johann Pleininger, said.
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The company also said that the Latif South-1 well had a gas throughput of 2,500 barrels of oil equivalent a day during testing.
“This discovery has opened up new exploration opportunities in the area,” the company said, adding that “further appraisal work is needed to confirm the size of the discovery.”
OMV’s global production was 309,000 boe a day last year, the company, which has a 33.4 per cent stake in the Latif exploration licence, said. Its partners are Pakistan Petroleum Ltd (PPL) and Italian energy group Eni, which hold 33.3 per cent each.
OMV Pakistan, a wholly-owned subsidiary of OMV Exploration & Production GmbH, started exploration activities in the desert area of Sindh in 1991 and is amongst the largest international natural gas producers in Pakistan in terms of operated volumes.
As a key investor in the oil and gas sector in the region, OMV also holds a 10% stake in Pak-Arab Refinery Limited (PARCO), a joint venture between Pakistan and Abu Dhabi.
Pakistan is currently pursuing two major projects of gas import, including the Iran-Pakistan (IP) pipeline project, which will supply 750 million cubic feet of gas per day (mmcfd) to Pakistan and the volume will be enough to generate 5,000MW of electricity.
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Pakistan faces over 7,000-megawatt power shortfall in the peak summer season that causes blackouts in many areas and cripples life and business. Estimates suggest that the energy shortage strikes 3% off economic growth every year.
In addition to electricity shortages, the country endures gas scarcity that reaches its peak in winter when even domestic consumers are left scrambling for the vital heating and cooking fuel.