The Oil and Gas Development Company Limited (OGDCL) has missed the much-trumpeted exploration and production target for 2007-08, resulting in decline in its oil and gas output during last year. The company's business plan 2007-08, a copy of which was made available to Business Recorder here on Tuesday, indicated that OGDCL had set the exploration and production target of 41 wells (exclusive of 9 wells planned for Balochistan, subject to clearance of security) for 2007-08, but physically it could drill only 31.
The business plan gave two reasons of missing the exploration and production target last fiscal year resulting in decline in oil and gas production. These were: non-spudding of 7 exploratory wells in Uch due to law and order situation, and 9 contingent wells could not also be spudded, basically, due to security reasons.
According to business plan, OGDCL had targeted 46,416 barrels crude oil production in 2007-08, but it could only physically achieve 45,225 barrels a day. It showed deficit in crude oil production of over 1000 barrels a day. Likewise, gas production also remained below target. The company's per day gas at the closing of the last financial year stood at 1040 mmcfd against the target of 1073 mmcfd.
LPG production also showed negative trend in growth in 2007-08. The company had set a target of 414 tons a day of LPG production but it could only get 367 tons production a day. Litigation was another reason of not starting of at least 4 major projects of OGDC.
The plan mentioned Singoro, Tando Allah Yar and Qadirpur compression project. These major development projects, which if had been completed by sorting out the controversies, could help the company improve its growth for securing more oil and gas for Pakistan.
These all development projects are in the litigations for years on different courts. The company is to wait till final judgement from the court. These projects went into litigation due to deviations either in award of contract or some other valid reason. OGDCL's record in the past for award of contacts to the parties has been not so impressive.
The business plan also has a clear vision for expediting exploration and production work to enhance its share in indigenous oil and gas production. According to the plan, OGDCL had taken up the target of 43+9 wells in 2008-09. One can hope that the new management would leave no stone unturned to achieve the projected target for 2008-09 for oil and gas exploration.
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