KARACHI: Oil and Gas Development Company (OGDC) has discovered oil and gas at Nashpa-2 field in Karak district of Khyber-Pakhtunkhwa, according to a statement issued by the company on Monday.
Initial flow indicates incremental production of 3,370 barrels of oil per day and 11 million cubic feet per day (mmcfd) of gas.
OGDC, the country’s largest oil and gas explorer, operates the field in partnership with Pakistan Petroleum Limited (PPL) and Government Holding Private Limited.
Full flow potential of this well and the extent of the discovery will be determined after completing the testing programme, the statement said.
OGDC holds a major stake of 56.5% in the block followed by PPL with 26.1%. As a result of the new find, earnings of OGDC and PPL are expected to rise by Rs0.6 and Rs0.91 per share, respectively, according to Global Securities.
“Discovery was struck in Nashpa-I in September 2009 which is currently producing 5,900 barrels per day of oil and 19 mmcfd of gas. Meanwhile, drilling is currently in progress at Nashpa-3, which is expected to further enhance flows.
More findings to follow
Expectations are ripe from another field called Zin-I, located in Dera Bugti, Balochistan in the vicinity of major fields like Sui and Uch, according to InvestCap.
OGDC acquired the block in 1996 and holds an 82.5% stake. Due to worsening law and order situation in the area, drilling was delayed by 14 years. Although it is premature to assess the actual flow to be generated by the field, gas flow of 500 mmcfd is expected, which would add Rs3 to Rs3.5 per share to OGDC’s net profit, adds the note.
Published in The Express Tribune, November 15th, 2011.
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