Oil and Gas Development Company Limited (OGDC) on Wednesday announced discovery of new oil and gas deposits in two different wells located in Khyber-Pakhtunkhwa (K-P).
Tests conducted by the exploration firm showed 1.6 million standard cubic feet per day (mmscfd) of gas and 12 barrels per day (bpd) of condensate in exploratory well Siab-1 from Samanasuk Formation, the company said in a notification sent to the Pakistan Stock Exchange (PSX).
Besides, tests showed 4.18 mmscfd of gas and 32 bpd of condensate in a zone in the Lumshiwal/ Hangu formation, according to the notification.
Hydrocarbon deposits in exploratory well Siab-1 were found by the joint venture of Baratai block, which comprised OGDC as operator of the block with 97.5% shareholding and K-P Oil and Gas Company Limited (KPOGCL) holding the remaining 2.5% stake in the block.
“The discovery of Siab-1 is the result of an aggressive exploration strategy adopted by the company,” the notification said. It revealed that the discovery was made through in-house expertise.
“It has opened a new avenue and is expected to add to the hydrocarbon reserves base of OGDC, KPOGCL and the country as it will contribute to reducing the gap between supply and demand of oil and gas in Pakistan through the exploitation of indigenous resources.”
During the day, OGDC’s share price rose 0.42%, or Rs0.44, and closed at Rs104.37 with 1.82 million shares changing hands at the PSX.
On average, Pakistan produced 85,000 bpd of oil from January to August 2020, according to tradingeconomics.com. However, the country meets around 80% of its oil demand through imports.
Separately, the country produces around 3.5 billion cubic feet of gas per day (bcfd) against total requirement of around 7 bcfd. It partially meets local demand through imports and manages the total requirement by resorting to supply outages for compressed natural gas (CNG) filling stations and industries.
Published in The Express Tribune, December 24th, 2020.
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