ISLAMABAD – The Oil and Gas Development Company Limited (OGDCL) has madenew announcement for the offshore drilling in Pakistan.
OGDC has said drilling in its ultra-deepwater offshore block is expected tostart next year.
The rig has been arranged, where work will start from January 2019, whichwill take about 4-5 years to develop, a senior company official, The Newshas reported.
Industry officials said a joint venture comprising OGDC, Pakistan PetroleumLimited (PPL), ENI and ExxonMobil, have planned drilling of the firstexploratory well Kekra-1 in offshore Indus G-Block with a total investmentof $70 million.
Pakistan’s oil and gas sector witnessed a major development recently whenthe world’s largest energy company ExxonMobil acquired 25 percent stake inPakistan’s offshore Indus G block. This development could be seen as amajor breakthrough as it might lead other international energy firms tobring foreign investment in Pakistan’s energy sector.
Indus G block is approximately 7,500 square kilometres located inultra-deep water offshore Pakistan. ENI is the operator of the block. OGDCLofficials said Tal block pricing case is in the court and the newgovernment is willing to discuss all existing issues.
The issue is expected to be settled in FY19, they said.
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OGDCL sees stagnant growth in gas production as “a challenge”.
In the next two years, the OGDC should be able to come up with 150mmcd ofgas.
“With natural depletion and incremental gas production, the company will beable to sustain its gas production at current levels going forward,” thecompany’s official said.
Profit of the company increased 23 percent in the year ended June 30, 2018,compared with the preceding year. This was on the back of higher crude oilprices and growth in sales.
Oil price hike and rupee depreciation lifted profit of Oil and GasDevelopment Company Limited (OGCL) up a decent 23 percent at Rs78.736billion during the financial year ended June 30, translating into earningsper share (EPS) of Rs18.31.
