Dewan Petroleum

completed

Dewan Petroleum (Pvt) Limited (DPL) and Rally Energy Pakistan Limited are oil and gas exploration companies with a combined 60% working interest in the Safed Koh block in the central Punjab province of Pakistan. DPL is the operator of the block.The Safed Koh concession area covers a discovered field; Salsabil (previously called Rodho); and two other prospects Afiband and Zindapir. In 2005, DPL re-entered two shallow wells that were drilled in the Salsabil field in 1974 and 1986 and deepened them to evaluate additional possible hydrocarbon targets. They made a significant gas discovery and have subsequently submitted field development plans to the government which have been approved. The project involves:- The development of the gas/condensate field at Salsabil including: workover of the two existing wells; the drilling and completion of two additional producing wells; construction and operation of a gas/condensate processing plant including facilities for the extraction of LPG; and, construction of an accommodation camp for the workforce. In addition, a 10” diameter pipeline will be constructed to export the gas from the field through a tie in to the existing Dhodak–Kot Addu pipeline of the state owned company, Sui Northern Gas Pipelines Ltd (SNGPL). This pipeline will be approximately 20 km long and constructed and operated by SNGPL.The construction program will last for approximately 3–4 months with early production scheduled for the fourth quarter of 2006.- Further exploration drilling in the Safed Koh concession at the Afiband and Zindapir prospects located south of the Salsabil field.DPL has also acquired the concession rights to five additional exploration blocks in Pakistan including Yazman, Khangarh, Rukanpur and Noor South in the Punjab, and Kalchas South which overlaps Baluchistan and the Punjab. Project activities in these blocks will be initially limited to exploration. Future investments will be dependent on the outcome of such exploration. IFC proposes to provide loan and equity financing of about $25 million for its own account, and syndicated loans of about $25 million for the account of participant(s).