Pakistan Says Premier Oil To Spend $40M On Offshore Well

ISLAMABAD, Aug 11, 2005 (Dow Jones Commodities News via Comtex)

The U.K.'s Premier Oil PLC (PMO.LN) plans to invest $40 million in drilling an exploration well off the shore of Pakistan, a government statement said Wednesday.

Simon Lockett, chief executive of Premier, said this at a meeting with Pakistan's Petroleum Minister Amanullah Jadoon Wednesday, the statement said.

No one at Premier in the U.K. could be immediately reached to comment.

According to the statement, Lockett said Premier and its partner, Royal Dutch Shell PLC's (RDSB.LN) Pakistan unit, would drill an exploratory well on the Indus E Block.

The drilling is expected to be carried out later this year, the statement added.

Lockett also told Jadoon that Premier has planned to drill an exploration well this month on the Jhangara Block in southern Sindh province, for which they had been granted a license recently.

Premier has working interests along with Kuwait Foreign Petroleum Exploration Co. in several blocks in Pakistan including Qadirpur, Kandarwari, Bhit, Zamzama, Zarghun South and Bhadra.

Pakistan has estimated it has 27 billion barrels of oil reserves of which only 3% have been explored. The country also has an estimated 280 trillion cubic feet of natural gas of which only 42% has been explored so far.

Currently, Pakistan produces around 3 million tons a year of crude, or around 60,000 barrels a day.

Copyright (c) 2005 Dow Jones & Company, Inc.

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