All Stories
Follow
Subscribe to OMV Aktiengesellschaft

OMV Aktiengesellschaft

euro adhoc: OMV Aktiengesellschaft
OMV becomes the biggest international gas operator in Pakistan (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
- Sawan gas field begins full production 
- Daily sales output of 9 million m³ 
- OMV’s gas production in Pakistan more than triples
On Wednesday October 22, the Sawan gas field operated by OMV in
southern Pakistan was formally opened.  The total daily sales volume
of the field will be 9 million (mn) m³ or 340 scf/d.  This will
enable OMV (Pakistan) Exploration GmbH, a 100%-owned subsidiary of
OMV Aktiengesellschaft, to more than triple its natural gas
production from 5,000 to 18,000 barrels oil equivalent per day
(boe/d).  Pakistan has thereby clearly established itself as a core
E&P region for OMV.
Wolfgang Ruttenstorfer, CEO of OMV said: "The opening of Sawan is a
milestone in our activities in Pakistan.  With the start of full
production at this field, we have become the biggest international
gas operator in Pakistan.  OMV will now be responsible for meeting
18% of the country’s demand for natural gas."
The Sawan gas field is located in the Sindh Province in the central
Indus Basin and is about 500 km from the port city of Karachi.  As a
partner of an international consortium, OMV is responsible for the
operation of the field.  Sawan was discovered in 1998 and has been
developed in just five years.  A total of approximately USD 265 mn
has been invested in the construction of infrastructure, with OMV’s
share amounting to approximately USD 50 million.  Sawan has
commercially usable reserves of more than 45 billion m³, and OMV’s
share of the daily production is around 13,000 boe (2.1 mn m³) per
day.
OMV’s biggest field development 
Helmut Langanger, OMV Executive Board Member responsible for
Exploration and Production said: "OMV has carried out this field
development within the targeted budget and time frame.  This is by no
means the rule in undertakings of such dimensions and complexity." 
The most modern technology has been employed in the development of
Sawan, which is the biggest field development in the history of the
OMV Group.
Optimal strategic position
The development of the Sawan natural gas field took place in two
steps, for both of which supply contracts exist with the Pakistani
gas companies Sui Southern Gas Company and Sui Northern Gas
Pipelines.  The production start-up, with a daily sales volume of 4.5
mn m³, occurred in June 2003.  With the beginning of full production,
the field now has a daily output of 9 mn m³.  Helmut Langanger
emphasized the advantageous strategic position of the natural gas
field: "Sawan is located directly between the markets of the two
Pakistani gas suppliers, Sui Northern Gas Pipelines and Sui Southern
Gas Company, which enables us to deliver to both companies.  We
intend to make the most of this hub position and strengthen it even
further in the future through additional exploration activities."
Biggest international natural gas operator in Pakistan
With the beginning of full operation at Sawan, OMV has become the
biggest international natural gas operator in Pakistan.  As the
operator of the field, OMV is now responsible for 17 mn m³ per day
(100,000 boe/d) or approximately 18% of the Pakistani demand for
natural gas.  Of this, around 60% comes from the Sawan production,
around 30% from the Miano Field and around 10% from the Kadanwari
Field, which is operated for ENI.  The production start of Sawan
leads to a tripling of the Group’s natural gas production in
Pakistan.  OMV’s share of this production volume increased by 2.1 mn
m³ to approximately 2.9 mn m³ per day or 18,000 boe/d.  OMV has been
active in Pakistan since 1991, and including Sawan, has to date
invested approximately USD 150 mn in exploration activities and field
development.
Notes to editors:
Facts and figures on the development of Sawan:
Duration of construction: 5 years
Total investment: USD 265 mn (OMV share: USD 50 mn)
Employment of up to 2,950 workers on the construction site 
A total of 9,000 metric tons of steel and 465,000 meters of cable
used in construction
9.5 mn accident-free working hours
Consortium partners in the Sawan field:
OMV (PAKISTAN), operator             19.74%
Pakistan Petroleum Limited           26.18%
Eni AEP Limited                      23.68%
Government Holdings Private Limited  22.50%
Moravske Naftove Doly a.s.            7.90%
OMV (PAKISTAN) Exploration GmbH is a 100% subsidiary of OMV
Aktiengesellschaft and has been active in Pakistan since 1991.  OMV
(Pakistan) employs 458 Pakistanis and 15 expatriates, of whom 12 are
Austrians.  The activities of OMV are concentrated in the central
Indus Region, where OMV has established itself in a strong position
as an operator.  In 1998 OMV discovered the large Sawan gas field,
which was declared to be commercially usable in December 1999.  Sawan
has commercial reserves of more than 45 billion m³.  The Miano gas
field was discovered in 1993 in the first drilling and went into
production at the end of December 2001, with a daily sales volume of
2.5 mn m³ of natural gas.  OMV has a 17.7% stake in the Miano field
and its share of the present Miano gas production is around 5,000
boe/d.
OMV Exploration and Production (E&P): In 2002 OMV produced
approximately 20 mn barrels of crude oil and NGL (natural gas
liquids), as well as approximately 66 billion cubic feet (around 1.75
billion m³) of natural gas.  By 2008 the Group plans to increase its
daily production rate from the present level of around 117,000 boe to
160,000 boe/d. OMV began developing its international E&P activities
in 1985 with participations in Libya.  The Group now has a balanced
international E&P portfolio in 16 countries.  Core regions of the E&P
business are the Danube-Adriatic region, the U.K., North Africa, the
Middle East and Australia/New Zealand.
end of announcement        euro adhoc 22.10.2003

Further inquiry note:

OMV
Investor Relations:
Brigitte H. Juen
Tel. +43 1 404 40-21622; e-mail: investor.relations@omv.com
Presse/Press:
Bernhard Hudik
Tel. +43 1 404 40-21660; e-mail: bernhard.hudik@omv.com
Thomas Huemer
Tel. +43 1 404 40-21660; e-mail: thomas.huemer@omv.com

Internet Homepage: http://www.omv.com

Branche: Oil & Gas - Downstream activities
ISIN: AT0000743059
WKN: 074305
Index: ATX, ATX Prime
Börsen: Bayerische Börse / official dealing
Frankfurter Wertpapierbörse / official dealing
Wiener Börse AG / official dealing
London Stock Exchange / official dealing

Original content of: OMV Aktiengesellschaft, transmitted by news aktuell

More stories: OMV Aktiengesellschaft
More stories: OMV Aktiengesellschaft