PPL signs agreement with UK’s Orion Energy

[Devil Soul]

ISLAMABAD - 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, took place at the Serena Hotel, Islamabad. PPL MD and CEO Asim Murtaza Khan and Orion Energy Director David M Thomas signed the documents on behalf of their respective companies. The British High Commissioner to Pakistan Adam Thomson and Pakistan-Britain Trade and Investment Forum Executive Director 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 $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 professionally with equity participation by both companies. Subject to approval by relevant authorities, initially 5-10 MMscfd gas from PPL’s Kandhkot Gas Field 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 the Kandhkot field with an initial size 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 could be enhanced up to 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 a fast-track basis with an investment of around $50 million. - See more at: PPL signs agreement with UK

 

[M.harris]