Islamabad, June 28, 2013 (PPI-OT): A signing event for Joint Study Agreement for Pakistan Offshore Exploration and a Memorandum of Understanding (MoU) for Kandhkot Gas-to-Power Project between Pakistan Petroleum Limited (PPL) and Orion Energy Plc., an oil and gas exploration company based in UK with offices in Milan, Italy, took place at the Serena Hotel, Islamabad.
MD and CEO PPL Asim Murtaza Khan and Director Orion Energy David M. Thomas signed the documents on behalf of their respective companies. The British High Commissioner to Pakistan Adam Thomson and Executive Director Pakistan-Britain Trade and Investment Forum and Partner at Lewis Silkin Nadim Khan representing Orion Energy were also present on the occasion.
PPL and Orion Energy plan to jointly study Indus and Makran offshore areas in Pakistan for hydrocarbon potential. Both companies will dedicate teams and resources for the study, which is expected to take around four months.
On identification of prospective areas, further exploration may be conducted. At a later stage, technological partners may also be brought in for state-of-the-art data acquisition, processing and identification of potential structures and reservoirs. Subsequent to the study, further exploration and production may require investments of more than USD 100 million.
Orion Energy is also interested in bringing foreign investment into Pakistan for setting up a fast-track gas-based power project with PPL as a joint venture partner to add much needed power to the national grid.
A special purpose company will be incorporated to develop, operate and manage the power project on professional basis with equity participation by both companies. Subject to approval by relevant authorities, initially 5-10 MMscfd gas from PPL’s Kandhkot Gas Field (KGF) will be made available for the project. PPL will sign a Gas Sales Agreement with the power company.
The power project will be installed near KGF with an initial size of between 25 to 50 MW. Additional 40-45 MMscfd gas may be allocated to the project by the government in which case the power plant’s capacity can be enhanced upto 250 MW.
A joint Feasibility Study will be undertaken to work out the economics and other technical aspects of the project, following which a formal shareholders’ agreement will be signed between PPL and Orion Energy. The project is expected to be commissioned on fast-track basis with an investment of around USD 50 million.
For more information, contact:
Pakistan Petroleum Limited (PPL)
PIDC House, Dr. Ziauddin Ahmed Road
P. O. Box No. 3942, Karachi, Pakistan
UAN: +92 21 111-568-568
Tel: +92 21 5651480-89
Fax: +92 21 5680005, +92 21 5652125