Project Profile
Value: Phase-1 US$106 million and Phase-2 US$120 million
Location: Sindh desert of Pakistan
Production: 450 million standard cubic feet of gas (MMcf/d) per day
Start-up Year: March 2001
The Zamzama gas field was discovered in 1998. On behalf of its joint venture partners, BHP Billiton Petroleum is the operator of the Zamzama production facility. The Zamzama field represents BHP Billiton’s first commercial production in Pakistan. Once discovered, the Zamzama field development was pursued on a fast track basis with early production commencing in March 2001 through an Extended Well Test (EWT) as a precursor to full field development. Gas Sales and Purchase Agreements (GSPA) were signed with the Government of Pakistan and its nominated buyers, Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL), were allocated a total of up to 320 million standard cubic feet of gas per day (MMcf/d) over the expected field life of 20 years.
In March 2002, the Joint Venture approved Phase-1 of the Zamzama field development. The full field development came on line in mid 2003. The project was completed about four months ahead of schedule, and under the original US$106 million budget, of which BHP Billiton’s contribution was approximately US$40 million. This represents a highly efficient, low cost development of a major gas resource. By 2004, a steady average production of 270 MMcf/d was being delivered from the field to our customers. The Zamzama field is now moving to Phase-2 development, which will accelerate the commercialisation of reserves. The Phase-2 Development was formally announced in November 2005, following the signing of separate agreements between the Zamzama Joint Venture, the Government of Pakistan and SSGCL. The Phase-2 Development project, scheduled for completion in the third quarter of 2007, represents an increase in plant production capacity of 50%, to a total of 450 million standard cubic feet of gas (MMcf/d) per day. This new facility will be located at the existing Zamzama plant site. The additional gas produced will be sold to SSGCL, under a new Gas Sales and Purchase Agreement. The total amount produced by the Phase-2 Development will have the potential to supply around 13% of Pakistan’s daily gas demand, so reducing the dependence on imported fuel and helping to rejuvenate the local economy. The total cost of Phase-2 is US$120 million, of which BHP Billiton’s share is US$46.2 million. Production of condensate associated with gas from the Zamzama field will average approximately 3,000 barrels per day. Under an agreement signed with the Government of Pakistan, the Joint Venture will also proceed with the construction of a new, 40 kilometre condensate pipeline linking the Zamzama plant to the Karachi-Multan crude oil pipeline at Bubak.
A drilling campaign was conducted in 2002 to 2003. During this period, five further appraisal and development wells were drilled which all proved successful with commercial gas flow at surface. In April 2000, the consortium of partners signed a GSA with SSGCL for the supply of 70 mmcfd of gas from the Zamzama field. In April 2001, gas production started from extended well tests of the Zamzama-1 discovery well and Zamzama-2 appraisal well under a 21-month contract signed with SSGCL for 60 mmcfd. As per the Phase-1development plan, two trains of dehydration plants with a capacity of 140 mmcfd were installed and commissioned in July 2003. Gas contracts were signed in the fourth quarter of 2001 with SSGCL and SNGPL covering the supply of up to 320 mmcfd. Another gas supply contract was signed with SSGCL for an additional supply of 150 mmcfd in 2007. A front end compression project is currently in progress: one out of two compressors has been commissioned, with the second planned to be commissioned in August 2012. The partners in the Zamzama field include BHP Billiton (operator), KUFPEC, ENI, Premier Oil and Government Holdings (Private) Ltd.
Operators:
Tri Resources Investments Inc (a Subsidiary of Hashoo Group): Operator
KUFPEC
ENI
Premier Oil
Government Holdings (Private) Ltd