Pakistan’s petroleum conference in the UK in July 2009 yields fruit  

 

Two new blocks awarded to BP nearly double BP Pakistan’s onshore acreage

 

Following the Pakistan oil and gas exploration promotion conference organised by Ministry of Petroleum with the assistance of High Commission for Pakistan, London during July 2009 in which the government of Pakistan identified 53 blocks of oil and gas rich areas  great interest was evinced among the British investors.

 

BP Pakistan Exploration & Production Inc. won bids for two new exploration blocks, Digri and Sanghar South on the 30th of September, 2009.

 

These blocks were awarded in a government licensing round held at the Directorate General Petroleum Concessions on September 30th.

 

To secure access to these blocks BP Pakistan has undertaken a work commitment of approximately US$ 30 million over a period of 3 years.

 

The Digri and Sanghar South blocks are adjacent to BP Pakistan Mirpur Khas Khipro concession areas and add another 5000 km2 to the company’s existing portfolio. 

 

A total of 41 blocks were granted 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 operations are based in province Sindh, with the concession boundary starting 100 km to the east of Karachi. Existing concession blocks span across eight districts in Sindh province. BP produces 15% of Pakistan's oil and 6% of its gas.

 

BP has also acquired significant off-shore acreage for petroleum exploration, situated 250 km 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 % working interest and license to operate the Mirpurkhas Khipro (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. 

 

Outside exploration and production, BP has also grown a vibrant automotive and industrial lubricants business. Its lubricants are sold under the Castrol brand.

 

 

London

October 5, 2009