OMV Wins Pakistani Exploration License

OMV has been awarded a new exploration license for the South West Miano II Block in southeastern Pakistan. Related agreements were signed today by OMV (Pakistan) Exploration Ges.m.b.H., a 100% subsidiary of OMV, serving as the operator of an international consortium, and the Pakistani Government. A total investment of about US $5.1 million is planned for the three-year exploration phase of an area of approximately 1,240 square kilometers in the Sindh Province. OMV's share of this investment will be US $1.7 million. Helmut Langanger, member of the OMV Executive Board with responsibility for Exploration and Production, commented: "This license will allow OMV to step up its exploration activities in the Middle East. The development of Pakistan as one of our core E & P regions is part of the strategy to double our daily oil and natural gas production until 2008 to 160,000 boe."

"With the acquisition of the new exploration license we have been able to close a strategic gap. The new exploration area represents a further complementary piece of the mosaic in this region, so rich in natural resources, where OMV plays a dominant role", he continued. The South West Miano II Block is located in the immediate vicinity of the OMV-operated natural gas field Miano, which has a daily sales volume of 100 million (mn) scf (2.5 mn m³), and of the big natural gas field Sawan that is currently under development. For Sawan, where OMV is also the operator, a daily sales volume of about 340 mn scf (9 mn m³) from the end of 2003 has been agreed upon with the Pakistani Government. The 1.3 tcf (35 bn m³) commercially usable reserves of Sawan correspond to five times the annual Austrian consumption of natural gas.

OMV will begin its exploration activities in South West Miano II at the beginning of 2003. By mid 2005, geological studies, 2D seismic surveys over 200 kilometers and one exploratory drilling should be completed. The consortium estimates that these activities will involve a total expenditure of USD 5.1 million. It is still too early to provide figures regarding the expected quantities of natural gas, but OMV assumes that significant discoveries will be made, especially as the new exploration area lies between the two big natural gas deposits of Miano and Sawan. Since the beginning of the 1990's OMV has been working very closely with the Pakistani Government and, after successful completion of exploration activities, expects to make rapid preparations for production from possible discoveries.

Consortium partners for exploration of South West Miano II, Block Nr. 2668-5 are OMV (Pakistan), as operator with 33.34%; Lasmo (MP) Limited with 33.33%; and Pakistan Petroleum Limited with 33.33%.