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Partners in oil and gas.

In June 1981, Union Texas Pakistan, Inc. and its partners, Oil and Gas Development Corporation (OGDC) and Occidental Petroleum Corporation, announced the first successful crude oil discovery in southern Pakistan in the Province of Sindh. For the nation and the petroleum industry, this discovery marked a major step in finding oil reserves outside the traditional Potwar Basin in the nation's northern section.

Eight years later, the Union Texas Pakistan group's string of successful oil and gas discoveries in the Badin area of Sindh has grown to 27 new crude oil and natural gas fields. This partnership has created multiple benefits for the nation, the Province of Sindh and the Union Texas Pakistan joint venture.

Union Texas Pakistan and its partners began their search for oil and gas in the Indus Basin of Pakistan's Badin area in April 1977. The Khaskeli No. 1 well -- the fifth drilled by the Union Texas Pakistan group -- found economic quantities of high-quality crude oil. In February 1982, just eight months after its initial discovery, the Union Texas Pakistan group began producing oil from the Khaskeli field, representing the first oil production from the Province of Sindh. Today, Khaskeli produces approximately 388 barrels of oil equivalent daily.

The Khaskeli field discovery was followed by the Laghari oil find in late 1983. In 1984, the pace of successful finds quickened with the announcement of the area's first natural gas discovery, the Golarchi field.

Since 1982, oil production from the Union Texas Pakistan group's operations has more than quadrupled, from 4,200 barrels daily to 18,000 barrels daily from five fields. Crude oil from the fields is transported via trucks to the National Refinery in Karachi for domestic use. Production from the joint venture accounts for over one-third of Pakistan's total domestic crude oil output.

The Union Taxas Pakistan group began producing natural gas in early 1989 and now is producing approximately 50 million cubic feet daily from two fields. The gas in transported via a government-owned, 68-mile-long pipeline with capacity of 100 million cubic feet daily to the city of Hyderabad, where the main gathering pipeline connects to the existing Trans-Pakistan gas system. Union Texas Pakistan's gas is sold primarily to commercial and industrial users.

Union Texas Pakistan and its partners explore for oil and gas on 2.2 million acres in the Badin area. The current exploration concession agreement with the Pakistani government extends through April 1990. Union Texas Pakistan serves as operator for the joint venture and has a 30 per cent interest in the operations. OGDC has a 40 per cent interest in the joint venture and Occidental Petroleum holds the remaining 30 per cent interest.

Union Texas Pakistan employees more than 300 people, of whom nearly 95 per cent are local citizens. The company has a policy of employing local citizens. Union Texas Pakistan provides its employees with on-the-job training and development programs to keep them abreast of advances in business and in petroleum-related technology. In addition to its staff, Union Texas Pakistan provides additional employment for over 300 citizens of the Province of Sindh by contracting work to other local companies.
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Title Annotation:Pakistan
Publication:Economic Review
Date:Feb 1, 1990
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