OMV Begins Production at Sawan Gas Field in Pakistan

On Wednesday October 22, the Sawan gas field operated by OMV in southern Pakistan was formally opened. The total daily sales volume of the field will be 9 million cubic meters or 340 scf/d. This will enable OMV (Pakistan) Exploration GmbH, a 100%-owned subsidiary of OMV Aktiengesellschaft, to more than triple its natural gas production from 5,000 to 18,000 barrels oil equivalent per day (boe/d). Pakistan has thereby clearly established itself as a core E&P region for OMV.

Wolfgang Ruttenstorfer, CEO of OMV said: "The opening of Sawan is a milestone in our activities in Pakistan. With the start of full production at this field, we have become the biggest international gas operator in Pakistan. OMV will now be responsible for meeting 18% of the country's demand for natural gas."

The Sawan gas field is located in the Sindh Province in the central Indus Basin and is about 500 km from the port city of Karachi. As a partner of an international consortium, OMV is responsible for the operation of the field. Sawan was discovered in 1998 and has been developed in just five years. A total of approximately US $265 million has been invested in the construction of infrastructure, with OMV's share amounting to approximately US $50 million. Sawan has commercially usable reserves of more than 45 billion cubic meters, and OMV's share of the daily production is around 13,000 boe (2.1 million cubic meters per day).

Helmut Langanger, OMV Executive Board Member responsible for Exploration and Production said: "OMV has carried out this field development within the targeted budget and time frame. This is by no means the rule in undertakings of such dimensions and complexity." The most modern technology has been employed in the development of Sawan, which is the biggest field development in the history of the OMV Group.

The development of the Sawan natural gas field took place in two steps, for both of which supply contracts exist with the Pakistani gas companies Sui Southern Gas Company and Sui Northern Gas Pipelines. The production start-up, with a daily sales volume of 4.5 million cubic meters, occurred in June 2003. With the beginning of full production, the field now has a daily output of 9 million m³. Helmut Langanger emphasized the advantageous strategic position of the natural gas field: "Sawan is located directly between the markets of the two Pakistani gas suppliers, Sui Northern Gas Pipelines and Sui Southern Gas Company, which enables us to deliver to both companies. We intend to make the most of this hub position and strengthen it even further in the future through additional exploration activities."

With the beginning of full operation at Sawan, OMV has become the biggest international natural gas operator in Pakistan. As the operator of the field, OMV is now responsible for 17 million cubic meters per day (100,000 boe/d) or approximately 18% of the Pakistani demand for natural gas. Of this, around 60% comes from the Sawan production, around 30% from the Miano Field and around 10% from the Kadanwari Field, which is operated for ENI. The production start of Sawan leads to a tripling of the Group's natural gas production in Pakistan. OMV share of this production volume increased by 2.1 million cubic meters to approximately 2.9 million cubic meters per day or 18,000 boe/d. OMV has been active in Pakistan since 1991 and including Sawan has to date invested approximately US $150 million in exploration activities and field development.

Consortium partners in the Sawan field are OMV as operator with 19.74%; Pakistan Petroleum with 26.18%; ENI with 23.68%; government Holdings Private Limited 22.50%; Moravske Naftove Doly with the remaining 7.90%.