Oil and gas exploration: OGDC plans to spend $5.8b on drilling projects

Local giant to drill 137 new wells in five years of which 16 are expected to be successful.


Zafar Bhutta August 30, 2011

ISLAMABAD:


In a bid to ease looming energy crisis by exploiting indigenous reserves, Oil and Gas Development Company Limited (OGDC) has planned to invest $5.8 billion to drill 137 wells under strategic plan 2011-12 to 2015-16.


Out of drilling 137 wells, OGDC has projected that it will make discoveries of oil and gas from 16 wells. The oil and gas explorer hopes to get 48 Million Stock Tank Barrels (MMSTB) oil, 8 MMSTB condensate and 1.6 Billion Cubic Feet Gas per day (Bcfd) from new discoveries.

The exploration process According to a plan available with The Express Tribune, OGDC has decided to invest $963 million to drill 27 wells in the ongoing financial year 2011-12. Out of these 27 wells, OGDCL hopes to discover oil, gas and condensate from four wells. The new discoveries are projected to produce nine MMSTB oil, 1.50 MMSTB of condensate and 150 MMCFD of gas.

According to the plan, OGDC will invest $1.317 billion on the drilling of 31 wells in the coming financial year 2012-13.The discovery of oil, gas and condensate is expected from two wells only which will yield 9MMSTB oil, 1.50 MMSTB condensate and 105 MMCFD gas.

In the financial year 2013-14, OGDCL will spend $969 million on the drilling of 26 wells and the company has estimated that it will discover oil, gas and condensate from four wells. OGDC estimates and addition of nine MMSTB oil, 1.50 MMSTB of condensate and 450 MMCFD of gas during the year under study.

In year 2014-15, the company will invest $1.23 billion on the exploration activities of 26 wells and discoveries of oil and gas reserves are expected from four wells. The company hopes to the discoveries will yield 10 MMSTB of oil, 1.50 MMSTB of condensate and 655 MMCFD of gas.

And finally, in the year 2015-16, OGDC will invest 1.35 billion dollars to drill 27 wells. However the company estimates that it will only strike gold in two wells which will yield 11 MMSTB oil, two MMSTB of condensate and 350 MMCFD of gas.

Published in The Express Tribune, August 31st,  2011.

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COMMENTS (12)

Leena Aftab | 9 years ago | Reply

@ bilal... This type of information is wayy too far from companies strategis plans, these type of articles are known to be a valuable information for investors.

TaHa | 9 years ago | Reply

@tariq Please read as it say's "Exploration Processes in the news" which (I hope you do understand working in an oil company) includes cost from bidding for the area, seismic acquisition (2-D, 3-D), interpretation (basin modelling, play maps), and then drilling.

The thing what bother's me is how many wild cat well's they are going to drill?

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