The sale of gas from the Sara and Suri fields in Pakistan is "having a major impact on profitability", Mr Pat Plunkett, chairman of Tullow Oil, said at yesterday's annual general meeting. "We expect to announce a very significant increase in turnover and operating profits at the interim stage this year."

Production from the two fields is expected to be enhanced by two further wells proposed for later this year. Mr Plunkett said Tullow had concluded an important joint venture in India with Larsen and Toubro for two onshore exploration blocks. The joint venture, he added, "enhances Tullow's position as a major player in the Indian gas-to-power market". Work on these programmes was at an advanced stage. Negotiations on the operation and equity split of the licence for block 9 in Bangladesh were near completion, he added.