Dera Ismail Khan (D I Khan) of Khyber Pakhtunkhwa have the capacity of producing 5000 barrel oil and natural gas production capacity is 45mmcfd. However, the production of oil has been capped at 1650 barrel while that of gas is 16mmcf for the purpose of economic analysis.
The Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGDCL) report said that the province has been divided into seven blocks on the basis of natural resources. The DIK block has been divided into East and West block. The East block comprising 446 sq kilometers area while the West block comprising 300 sq kilometers.
The KPOGCL in cooperation with foreign and local companies is exploring more sites to increase productivity. The company Chief Executive Raziud Din Razi said that Dera Ismail Khan Block is full of resources and KPOGCL started work in the DIK Block in current year. The official said that DIK Block is a 15-year project which is expected to generate 555 million dollars. Out of the profit, natural gas would contribute 261 million dollars while crude oil would add 294 million dollars. However, after the expenditures, royalties and taxes the net profit would be 172 million dollars.
He said that DIK East Block project is expected to generate 263 million dollars. Out of the profit natural gas would contribute 116 million dollars while crude oil would add 147 million dollars. However, after the expenditures including royalties and taxes the net profit would be 78 million dollars. The official further said that DIK West Block project is expected to generate 292 million dollars.
Out of the profit natural gas would contribute 145 million dollars while crude oil would add 147 million dollars. However, after the expenditures, royalties and taxes the net profit would be 94 million dollars. He said the construction plan is being prepared for establishment of first Oil Refinery in Kohat that would save time and reduce transportation cost for supplying oil to the market. He said the Kohat Oil Refinery will fulfil the country's requirement and would help in creating job opportunities.
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