British Petroleum invests further in Pak oil exploration

[Omar1984]

BP invests further in Pak oil exploration
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LONDON: British Petroleum and Production Inc has won bids for two new exploration blocks at Digri and Sanghar South in Sindh province.

These blocks were awarded in a government licencing round held at the Directorate of General Petroleum concessions last month.

Currently BP produces 15 percent of Pakistan ’s oil and 60 percent of its gas. To secure access to these bocks BP Pakistan has undertaken a work commitment of approximately $30 million over a period of three years.

The Digri and Sanghar South blocks are adjacent to BP Pakistan Mirpurkhas Khipro (MKK) concession areas and add another 5,000km to the company’s existing portfolio.

The bidding of exploration blocks has been materialised as the follow up of Pakistan Petroleum Exploration Conference held in London in July where 54 exploration blocks were offered and investors were apprised of the exploration potential existing in various areas of Pakistan.

A Pakistan High Commission media release said a total of 41 blocks were offered for bidding to international and local exploration companies under the 2009 Petroleum Policy.

In Pakistan, BP focuses primarily on exploration and production through BP Pakistan Exploration and Production, Inc. All of its operations are based in the Sindh province, with the concession boundary starting 100km to the east of Karachi. Existing concession blocks span across eight districts in the Sindh province.

BP has also acquired significant off-shore acreage for petroleum exploration, situated 250km south of Karachi in ultra deep waters. This is the largest off-shore acreage given to any single exploration and production company in Pakistan so far. Results of seismic surveys on this acreage are being interpreted currently to determine exploration feasibility.

In 2007 BP acquired Occidental Petroleum Corporation’s oil and gas interests in Pakistan operated by BP Pakistan.

Following that, in 2008, BP Pakistan further expanded its portfolio by acquiring 51.3 percent working interest and licence to operate the MKK blocks, significantly enhancing BP’s production profile.

Similar to nearby assets in Badin the MKK concessions are a strategic fit, and besides the expansion of BP Pakistan’s business in the region, will also accrue several other advantages to the company in terms of application of technology and economies of scale. app