OMV Achieves Record Production Rate with Pakistani Well

OMV has tested a production well in the Sawan gas field, located in the middle Indus basin at a record rate of 101 million (mn) scf/d (2.7 mn m3/d), the highest rate ever achieved in a Pakistani gas field and also the highest rate OMV has ever tested from a single well. This tested production rate would cover a daily consumption of a town like Vienna or, on an annualized basis, about 14% of the Austrian gas consumption. The latest available 3D seismic technology linked with state-of-the-art computerized geological models of the reservoir were used to deliver these excellent results.

Helmut Langanger, member of the OMV Executive Board with responsibility for Exploration and Production (E&P) commented: "This success strengthens our market position in Pakistan significantly, one of the pillars of OMV's E&P production strategy, and is another milestone towards our target of doubling OMV's daily oil and gas production to 160,000 boe by 2008."

By year end 2003, Sawan, which is operated by OMV (Pakistan), a 100% owned subsidiary of OMV Aktiengesellschaft, will produce 340 mn scf/d sales gas (9 mn m3/d). When combined with OMV's existing operated production, this will make OMV the largest foreign operator of gas production in Pakistan.

The Sawan gas field is located in the middle Indus area, Sindh Province, some 500 km north of the port city of Karachi. OMV (Pakistan) plans to develop the Sawan gas field in two stages. Phase 1 of production is due to start in Q3/2003 with a rate of 170 mn scf/d sales gas. Phase 2 Phase 2 of production, which will double the sales gas rate to 340 mn scf/d, is expected to start by the end of 2003. Gas sales agreements for Phase 1 have been signed with Sui Southern Gas Company (SSGCL) and for Phase 2 with Sui Northern Gas Pipelines Limited (SNGPL), respectively.

Sawan 7, where the record rate was tested, is one of the production wells required for the start up of the gas production during Phase 1. The well location was chosen by applying the latest available 3D seismic technology linked with OMV's geological model of the reservoir. The synthesis of seismic attributes and geological reservoir modelling allows for very accurate predictions of expected reservoir properties prior to drilling and has delivered excellent results throughout the development of the field. The well is planned to produce at a sustainable rate of 85 mn scf/d (2.3 mn m3/d). 255 mn scf/d (6.7 mn m3/d) will be produced from six other wells.

After reaching full capacity at the end of 2003, OMV (Pakistan) will then supply about 18% of Pakistan's total gas needs and operate 510 mn scf/d (14 mn m3/d or 85,000 boe/d) sales gas. 60% of that production will stem from Sawan, 30% from Miano and 10% from Kadanwari, which is operated on behalf of Eni. OMV's net share will be around around 90 mn scf/d (2.4 mn m3/d or 15,000 boe/d). It is planned to further develop and strengthen OMV (Pakistan)'s position in the Middle Indus region through further exploration activities in accordance with the existing portfolio strategy.

Partners in the Sawan Field are OMV as operator with 19/74%; Agip with 23.68%; Moravske Naftove Doly with 7.90%; Pakistan Petroleum Limited with 26.18%; Government Holdings Private Limited with the remaining 22.50%.