Tullow Oil expects its first two Pakistani gas fields to be in production by the year's end and says the resulting cash-flow should "transform the company".
The company has a 38.18 per cent interest in the two gas fields, Sara and Suri, which between them have estimated reserves of 230 billion cubic feet.
The managing director, Mr Adrian Heavey, said selling the gas will "not be a problem" and said Pakistan is actively seeking to buy cheap local gas. "We want to link up with power plants that can take the maximum amount," he said.
The company has also announced that it has lodged an application this week to have a force majeure ended on its block 28 licence area, Pakistan, in which it has a 95 per cent interest. The force majeure, which has halted work on the block, was imposed after a dispute arose about the territory surrounding the block. If the application is successful field work will begin before the end of the year.
Block 28 is thought to contain potentially sizeable gas reserves, but because they are at deeper levels than normal, a drilling programme could take longer than usual.
The company has a 24 per cent stake in the block CI-26 offshore, Ivory Coast, and in conjunction with its partners Addax, Svenska and Petroci, is seeking re-development finance of $255 million for the block.
The development will include a gas pipeline to the shore, floating production, storage and an offloading system. The first oil from the block is expected in 2000, said Mr Heavey yesterday.
He added that Tullow is interested in looking at Romania as a new core area for exploration. The company will formally acquire exploration licences over two blocks there next week.
