OGDC to add significant crude oil, gas into system

Increased production to help reduce import bill, save foreign exchange reserves

KARACHI: The Oil and Gas Development Company Limited (OGDCL) plans to add significant volumes of crude oil and gas into the system in one month as it has completed development work on wells located in Khyber-Pakhtunkhwa (K-P), according to a bourse filing Wednesday.

“The company would add 5,250 barrel per day of crude oil and 23.7 million standard cubic feet per day (mmscfd) into the system by mid-September,” said OGDC Company Secretary Ahmed Hayat Lak in a statement to the Pakistan Stock Exchange (PSX).

OGDC is the operator of wells while Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited (GHPL) are joint venture partners.

OGDC’s share price increased Rs1.66 and closed at Rs141.82 with a turnover of 881,000 shares while that of PPL fell Rs2.16 and closed at Rs163.76 with a turnover of 281,200 shares.



OGDC also announced its financial results Wednesday, where the company announced a surprise dividend pay-out, a reason behind the surge in its share price.

Meanwhile, the reserves were tested at Nashpa Well no 6 and 7, located in district Karak and Kohat of K-P.

Giving the breakup of the reserves, the statement said the company had tested 2,700 barrels per day of crude oil and 7.4 mmscfd of gas at Naspha well no7. The company has laid a pipeline at an area of 1.86 kilometres to connect the well with the system within this week.

The well was drilled down to the depth of 4,596 metres, targeting to test the hydrocarbon potential of Datta and Shinawari formations, said the statement.

Likewise, the Nashpa well no 6 produced 2,550 barrels per day of crude oil and 16.3 mmcfd. “Furthermore, laying of seven kilometres pipeline is in progress and the well would be injected into the system by mid-September 2016,” it added.

The well no 6 was drilled down to the depth of 5,025 metres, targeting to test the hydrocarbon potential of Kingriali, Datta, Shinawari, Samanasuk, Lumshiwal and Lokhart formations.

Published in The Express Tribune, August 25^th, 2016.

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