Gas Fields: OGDC increases prices of uncapped fields

PPL is the major beneficiary of increase in wellhead gas prices due to company’s heavy production profile.

KARACHI:

Oil and Gas Development Company (OGDC) increased prices of uncapped fields by 21% to 32% on Wednesday, according to a notice sent to the Karachi Stock Exchange.

However, they constitute a relatively small chunk of total production which limits any increase in revenues. Since most of the fields are already priced at their capped levels, there has not been a significant increase in wellhead gas prices, said Global Securities analyst Syed Saquib Ali.

The notified prices are largely in line with analyst expectations.

Pakistan Petroleum Limited is the major beneficiary of the increase in wellhead gas prices due to the company’s heavy production profile of gas and uncapped fields, added Ali.

Published in The Express Tribune, October 6^th, 2011.