BHP Billiton has announced approval for the development of the Zamzama gas field in southern Pakistan. The announcement follows the signing of separate gas sales and purchase agreements and a gas pricing agreement with the government of Pakistan, the Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited. The agreements cover the supply of up to 320 million standard cubic feet per day of gas over the expected field life of 20 years, commencing in 2003. The core area of the Zamzama field to be developed has estimated proven and probable gross reserves of 1.7 trillion cubic feet, of which BHP Billiton’s equity share is around 650 billion cubic feet. The Zamzama development will commercialise gas resources from the field that were initially produced via an extended well test production facility. Capital expenditure for this phase of the project will be in the order of USD 100 million (BHP Billiton share USD 40 million).
The Zamzama field development will require two additional processing trains which will be located on the existing EWT plant site, and the drilling of a minimum of three development wells. A stabilised condensate flow of 2000 barrels per day will be exported by a small diameter pipeline to nearby pipeline infrastructure. The Zamzama field lies within the original Dadu Exploration Concession awarded to BHP Billiton Petroleum in February 1995, located in the Sindh Province of southern Pakistan (approximately 200 kilometres north east of Karachi). The field is a major resource, covering an area of about 120 square kilometres, and ranks fourth in terms of Pakistan’s discovered gas reserves.
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