With new technology, OGDCL enhances oil, gas output
According to the OGDCL its new optimization strategy is likely to result in annual import substitution of $91 million. PHOTO: REUTERS/FILE
Oil and Gas Development Company Limited (OGDCL), the country’s largest hydrocarbon explorer, has announced a significant increase in energy production through the adoption of cutting-edge technologies.
“OGDCL is using cutting-edge technologies for production optimisation. Significant enhancement in production has been achieved in July 2023,” the company announced in a filing at the Pakistan Stock Exchange.
According to sources, OGDCL had a few months back constituted a production optimisation group to ramp up oil and gas output through the deployment of latest technology and techniques and embracing international best practices.
“It is encouraging to note that the largest exploration and production (E&P) company of Pakistan has adopted the correct path by optimising production and enhancing efficiencies,” an industry official remarked. “OGDCL has set a new roadmap which other companies can follow.”
According to the company’s notice, the new strategy has resulted in a substantial incremental production of oil, gas and liquefied petroleum gas (LPG).
OGDCL has added 1,865 barrels per day (bpd) of crude oil, 15.9 million standard cubic feet per day (mmscfd) of gas and 51 metric tons of LPG per day by implementing the optimisation strategy. According to the company, this is likely to result in annual import substitution of $91 million.
In recent months, Pakistan has faced gas shortages owing to issues in liquefied natural gas (LNG) imports.
Pakistan LNG Limited (PLL) has failed to make LNG purchases through spot contracts over the past couple of years. Consequently, several parts of the country do not have gas supply after 10 pm in the summer season.
It is rare for consumers to experience gas shortages in summer, which usually happens in winter when demand soars for heating and cooking purposes.
In its announcement, OGDCL has issued details of wells where the optimisation strategy has been adopted to boost oil and gas output.
Nim East-1 exploratory well is a joint venture between OGDCL – the operator with 95% working interest – and Government Holdings (Private) Limited (GHPL) with 5% interest. It is located in Tando Allah Yar district, Sindh.
The well made an additional production of 585 bpd of oil, 7.4 mmscfd of gas and 32 metric tons of LPG per day.
The gas was being injected into the Sui Southern Gas Company (SSGC)’s network with effect from July 20, 2023 and remained under observation till July 28, 2023.
Separately, OGDCL installed an electrical submersible pump at well-II of its 100% owned Pasakhi Oil Field, situated in Hyderabad district.
The intervention resulted in an incremental impact of 1,010 bpd of oil. The well is currently producing 1,810 bpd of oil and is still under observation for optimum flow rates. The enhanced production from
the well commenced from July 28, 2023.
Chak 2-1 exploratory well is a joint venture between OGDCL, the operator with 62.5% working interest, GHPL (22.5%) and Orient Petroleum (15%) in Sanghar district, Sindh.
“Rig-less intervention resulted in an increment of 140 bpd of oil, 4.7 mmscfd of gas and 11 tons of LPG per day.”
The gas was being injected into SSGC’s network with effect from July 20, 2023 and remained under observation till July 28, 2023.
Apart from that, OGDCL has 100% working interest in the Chak-V Dim South-3 development-cum-exploratory well located in Chak-5 Dim South Block, Sanghar district.
“Rig-less intervention with new perforations resulted in incremental production of 130 bpd of oil, 3.8 mmscfd of gas and 8 tons of LPG per day.”
The gas was being injected into SSGC’s system with effect from July 24, 2023 and remained under observation till July 28, 2023.
Published in The Express Tribune, August 1st, 2023.
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