OGDC announces new discovery

KARACHI:

The state-owned Oil and Gas Development Company (OGDC) announced discovery of new oil and gas deposits from a well located in FR Lakki, Khyber-Pakhtunkhwa (K-P), moderately slashing the nation’s heavy reliance on imported energy.

“The well flowed at the rate of 11.361 million standard cubic feet per day (mmcfd) of gas and 895 barrels per day condensate...,” OGDC Secretary Ahmed Hayat Lak said in a notification to the Pakistan Stock Exchange (PSX) on Tuesday.

This is positive news for Pakistan which heavily relies on expensive imports of energy to meet local demand. “Any amount of discovery should be taken positive whether this is big or small one,” an analyst said.

The size of the discovery stood notable compared to ones achieved by the same company over the past one year. “Technically speaking, this is a moderate to small discovery considering huge demand for hydrocarbons in the country,” another analyst remarked.

The discovery would fill the gap occurred due to depletion of oil and gas reserves from existing fields. Accordingly, this would keep production steady in the country, he said.

The latest discovery would add up oil supplies by 1.28% per day and gas supplies by 0.34% per day from local fields, it was learnt.

The crude oil’s output recorded at 68,878 barrels per day in the week ended August 24, while gas production stood at 3,337 mmcfd in the week in the country, according to the last data compiled by a research house.

On the other hand, total demand for oil is estimated at around 450,000-500,000 barrels per day and over five billion cubic feet of gas per day. Pakistan meets almost 70% demand for the energy through imports which come to over one-fifth of the total annual import bill in US dollar value.

OGDC latest notice to PSX said it is operator of Wali Exploration Licence with 100% working interest over Hangu Formation from its exploratory efforts at Wali # 01 well which is located in FR Lakki, Khyber Pakhtunkhwa province.

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It is highlighted that this gas/condensate discovery has further extended the hydrocarbon play area on the south western part of Bannu Basin. “This discovery will add to the hydrocarbon reserves based of OGDC and of the country. It will positively contribute in mitigating energy demand and supply gap from indigenous resources,” the notice read.

“OGDCL’s exploratory efforts to locate new reserves during the reporting period yielded five (5) oil and gas discoveries having expected cumulative daily production potential of 18 mmcf of gas and 849 barrels of oil,” the company said in its Interim Report and Financial Information for nine months ended March 31, 2021.

OGDC alone produced 36,836 barrels per day of oil during nine months (Jul-Mar FY21), while it produced 865 mmcf of gas per day during the period.

The production was low compared to the same period last year. “During the period under review, OGDCL’s oil and gas production was impacted primarily by natural decline at Kunnar, KPD-TAY, Dakhni, Sinjhoro and Nashpa fields,” according to its latest interim report and financial information.

Published in The Express Tribune, September 8^th, 2021.

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