British oil firm to invest in Pakistan exploration

ISLAMABAD (updated on: August 10, 2005, 19:19 PST): British oil exploration and production firm Premier Oil plans to invest about $40 million in a Pakistani offshore exploration joint venture, the Pakistani Petroleum Ministry said on Wednesday.

The Chief Executive of Premier Oil, Simon Lockett, said the firm planned to drill a well with its partner, Shell Pakistan, in an area called the Indus Basin, off southern Pakistan, the ministry said.

The drilling will be carried out when the weather improves after the rainy season later this year, the ministry said in a statement after Lockett met Pakistani Petroleum Minister Amanullah Khan Jadoon.

Pakistan hopes Premier Oil would invest more in both onshore and offshore exploration, the ministry said.

Pakistan's liberal exploration policy has attracted interest from foreign firms in recent years, making oil and gas the largest foreign investment area, though a well drilled by Premier last year turned out dry.

A consortium led by French oil major Total also made an unsuccessful attempt last year to find hydrocarbons in deep water off the southern city of Karachi.

Premier Oil holds working interests along with Kuwait Foreign Petroleum Exploration Company in a number of blocks in Pakistan.

Premier Oil Pakistan also plans to drill an exploration well in Jhangara Block off Sindh province next month, the ministry said.