The Oil and Gas Development Company (OGDC) is Pakistan''s leading exploration and production (E&P) company. It prides itself on a competent and dedicated workforce engaged in providing energy security to Pakistan.
In an exclusive interview with Business Recorder''s Islamabad Resident Editor Anjum Ibrahim and Senior Economic Reporter Arif Rana, OGDC Chairman and Chief Executive Officer, Arshad Nasar, emphasises the critical role played by the OGDC in Pakistan''s development and asserted that OGDC is the only organisation in Pakistan that can be transformed into a multinational entity.
THE FOLLOWING ARE EXCERPTS FROM THE INTERVIEW:
BR: To what extent has OGDC been successful in achieving its drilling targets?
Arshad Nasar: OGDC''s target two years ago was 15 wells per annum. Last year the target was revised upward to 41 plus 9 - the latter 9 being exclusively in Balochistan and therefore requiring security clearance. This clearance is still pending, but it is expected that work will commence soon.
BR: What is OGDC''s success ratio in relation to drilled wells?
Arshad Nasar: The International success ratio is 1:8 to 10 wells while in Pakistan we are the leaders, our success ratio is very high, less than three wells.
BR: Is there any possibility of OGDC entering into the world exploration market?
Arshad Nasar: OGDC is the only entity in Pakistan that has the ability to become a multinational. However its overriding objective is to bring additional oil and gas resources to assist Pakistan meet its requirements. OGDC is currently involved in bidding for contracts outside the country and talks are under way with a number of possible joint ventures in this regard including Yemen, Egypt, Turkey, China and Libya.
BR: What is OGDC''s global depository receipt (GDR) performance on the London Stock Exchange?
Arshad Nasar: OGDC made a presentation to international investors prior to listing on the London Stock Exchange. The presentation was very successful and generated $813 million. This reflects international investor confidence in OGDC. In contrast, response to the Indian CNGC was poor.
BR: Is the cost of drilling on the rise?
Arshad Nasar: Yes and naturally so. With the cost of oil rising, more and more countries are engaging themselves in drilling activities. This has implied a rise in the cost of drilling worldwide.
BR: Will OGDC support the government for another GDR?
Arshad Nasar: It is the government''s prerogative to decide that. At present there is no such plan.
BR: Is OGDC planning to go for an offshore project in the near future?
Arshad Nasar: OGDC is partnering with British Petroleum on an offshore project in Pakistan''s territorial waters. A survey and other technical work are in progress.
BR: Is petroleum policy 2008 facilitating upstream industry for exploration and production activities?
Arshad Nasar: The new petroleum policy is instrumental in bringing more investment in Pakistan for exploration and production activities. It provides a level playing field to all stakeholders for a win-win situation.
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