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Mari Petroleum launches commercial production at Pakistan onshore gas field

13th August 2014

Joint venture partner Jura Energy has announced the commencement of commercial production from the Zarghun South gas field in the Zarghun South Block in Pakistan

Mari Petroleum launches commercial production at Pakistan onshore gas field
The Zarghun South lease covers an area of approximately 124 square kilometres in the western part of the Sulaiman Fold and Thrust Belt of the Middle Indus Basin

Commercial production has started at the Zarghun South gas field, where approximately four million cubic feet a day (MMcfd) of gas from the field is being sold to Sui Southern Gas Company Limited (SSGCL) under an interim gas sale arrangement.

The Zarghun South lease covers an area of approximately 124 square kilometres in the western part of the Sulaiman Fold and Thrust Belt of the Middle Indus Basin.

It is strategically located near the gas demand centre of the city of Quetta.

Jura holds a 40 per cent working interest in the Zarghun South lease, which is operated by Mari Petroleum Company Limited.

This interim arrangement was approved by the joint venture partners pending the installation and commissioning of an Amine Sweetening Unit (ASU), used to remove carbon dioxide and hydrogen sulphide from the inlet gas stream. During this interim arrangement, a chemical scavenger is being used in place of the ASU. The gas sold during this interim period will be "off specification", as this gas will not fully meet the specified composition standard agreed under the original gas sale agreement with SSGCL. This interim arrangement will continue until the ASU becomes fully operational, which is expected to occur in October 2014.

Approximately 80 per cent of Zarghun South's reserves are certified as "tight gas" under Pakistan's Tight Gas (Exploration and Production) Policy, 2011.

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