Oil and Gas Development Company Development Limited (OGDCL) has made two major discoveries of gas and oil in Sindh and KP. Addressing a press conference here Thursday, Federal Minister for Petroleum Shahid Khaqan Abbasi said "OGDCL has found 35.8 Million Cubic Feet per Day (MMCFD) of gas from Thal East-well 1 located in Sindh and 1,032 barrels per day crude oil from Nashpa-well 5 in KPK." Abbasi added that the state-owned company had targeted to drill 31 wells in the ongoing financial year.
He said OGDCL will add 125 MMCFD of gas to the national distribution system by the end of March from Kunar Pasaki gas field and the field will also produce up to 380 tons of Liquefied Petroleum Gas (LPG) per day. He said the Khyber Pakhtunkhawa government failed to complete gas-based power plants but was asking for gas supply, adding that the federal government was ready to provide gas to provincial power projects whenever completed.
He said Pakistan Petroleum Limited (PPL) had also made two discoveries which include 468 barrels per day crude oil and 56 MMCFD of gas. "These two companies would be able to add 90 MMCFD gas in the system which would help minimize gas load shedding," Abbasi said, adding that Punjab was facing 40 percent gas load shedding and the government would be able to overcome load shedding in next winter by importing LNG.
He said that Sui field was producing up to 300 to 350 MMCFD of gas and the government would have to give new price to attract further investment from this field. He said one-year extension in the lease had been granted to PPL and permanent extension would be given after signing an agreement with Balochistan government. He said LNG-based power plants were being set up and the government would be able to overcome load-shedding to greater extent in 2017. He said Iran-Pakistan (IP) gas pipeline project was delayed due to sanctions against Iran. He said work would start on this project after sanctions are lifted.
The minister said gas shortage for domestic consumers in Punjab stands at 40 percent and the management was forced to suspend gas for domestic consumers for a few hours a day. He added that his ministry has decided to take up the issue with Council of Common Interests (CCI) as every domestic sector gas consumer of the federation has the right to have gas supply at least for domestic use.
He said the Economic Coordination Committee (ECC) had authorized Pakistan State Oil (PSO) to sign commercial agreement with Qatar gas. He said commercial agreement would be signed after approval of the board of directors. "The price of LNG stands below $5.50 per mmbtu after revised deal with Qatar," he said. He said textile sector was getting 60 mmcfd LNG to meet the demand. He said three names had been moved to Prime Minister for appointing permanent head of SNGPL.
He said Russia was going to implement LNG pipeline project on BOT basis and a new company would work on this project in case Russian company faces sanctions. He said all sectors including textile, CNG and power sector would have to pay full cost of LNG. The ECC also gave go ahead to PSO to strike G2G LNG deal with Qatargas following the approval of all the stakeholders. As per the Ministry of Law's opinion the deal between PSO and Qatargas was is G2G basis and the ECC has specifically sought Law Ministry's viewpoint.
Managing Director (MD) OGDCL Zahid Mir said the company would meet the target of drilling 31 wells by end of June this year. "125 MMCFD of gas from KP would be added to the system in March," he said, adding that the company would also start producing 380 tons LPG in this period. He said that OGDCL was evaluating samples of shale gas from the wells which was drilled during the last two years. He said that contract had been awarded to a firm to find shale gas potential in one best well which would be pilot project. "More wells would be drilled if we find potential results," he said. He said that OGDCL had also started work on those wells in Balochistan which were under force majeure. He said the company had 24 blocks in Balochistan and work had been started on 8 blocks.
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