Major development : OMV boosts gas supply in Pakistan by 100 MMSCFD
By Ijaz Kakakkhel
SAWAN/ISLAMABAD: In a major energy sector development, Pakistan witnessed headway in integrated gas supply chain.
This happened as Prime Minister Nawaz Sharif inaugurated the first gas delivery into the 47-kilometre long gas pipeline connecting four development wells of Latif Field with the Sawan Processing Plant. This iconic project led by OMV will result in 100 million standard cubic feet per day (MMSCFD) targeted supply of gas to Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Ltd (SNGPL).
As winter inches closer the new development has been received as good news by industrial as well as domestic stakeholders and consumers across Pakistan. OMV along with its joint venture partners Eni and PPL has been working on the project commissioned by Directorate General of Petroleum Concession (DGPC) under the provisions of the Petroleum Policy 2012.
The field has been contributing to the country’s gas production since December 2008. DGPC approved the Latif Field Development Plan (FDP) on June 8, 2012 with an addendum reflecting joint venture commitment for development activities and respective funding. In return the govenrment allowed 2012 policy gas price for the incremental volumes beyond the FDP base production once a minimum 10 percent increase is achieved in gas production upon its execution and formal notification.
As a pragmatic result, Latif JV received regulator’s (DGPC) approval on June 8, 2012 for Latif discovery; Declaration of Commerciality, FDP and the grant of Development and Production Lease over 178 square kms based upon the agreed dual-pricing mechanism. The government also nominated the buyers for Latif gas allocating 50 percent sales volumes each to SNGPL and SSGC.
The revised scope of work in this retrospect includes drilling, completion and tie-in of four development wells; well compression facilities; 47 kms 16 inches CS pipeline to connect Latif Field to Sawan Plant; reception and metering facilities at Sawan.
One of the major project activities; 47 kms of 16 inches pipeline was awarded to two leading contractors SNGPL and Pipe Link Construction that led to simultaneously commence activities thus reducing the pipeline construction time by 50 percent with a further improvement in time due to competitive environment.
Known for the high-held HSE records, OMV ensured completion of Latif Field Development Project while achieving 3.0 million LTI free man-hours with average manpower deployment of around 1,400 at multiple work sites.
The prime minister hailed OMV, its joint venture partners and all contractors engaged in this landmark project on setting examples of excellence while serving the communities and caring for the environment.
During the graceful ceremony, its was also highlighted that several community development schemes will benefit Latif in addition to Miano, Sawan and Gambat concessions population. OMV is already supporting six schools in the region with local cooperation. On the sidelines, a Training Resource Centre was also established to ensure the quality in education. In addition opportunities have been provided to local youth to obtain technical education and widen their career prospects.
On account of healthcare for communities in proximity with this phenomenal project of national energy security - Family Medical Centre at Chundko, District Khairpur was established. The project also enabled Hepatitis B Prophylaxis vaccination with the financial support of Austrian Development Agency (ADA) benefiting almost 33,000 people from the local communities while support for polio eradication has also been a priority area of focus for the project’s social responsibility initiatives.
It is a encouraging to see that foreign direct investment continues to focus on Pakistan as democracy gains stronghold. Besides an exponential boost to the energy-critical gas supply system of Pakistan undoubtedly the Latif Field Development Project provided job opportunity to thousands of unskilled locals throughout the project life besides engaging local contractors in transportation and logistics. It has also been reported that the local landowners received handsome compensation for their land for the right of way for gas transporting pipeline while roads infrastructure was also built in interior Sindh regions to the well sites and facilities.
With more exploration and production players following the success stories of OMV, the future of Pakistan’s energy sector looks promising.
Daily Times - Leading News Resource of Pakistan