Oil and Gas Development Company Ltd (OGDCL) has started production from its new field and would likely to produce 10 million cubic feet of gas per day and 2,000 barrels of oil per day.
According to a letter faxed to the Karachi Stock Exchange on Thursday, OGDCL on 17th July 2004 started production of oil and gas from its Chanda field, (in Kohat district), the first ever discovery of hydrocarbons in the North-West Frontier Province.
The OGDCL will initially produce 10 million cubic feet of gas per day (MMSCFD) and 2000 barrels per day of oil. The gas will be transmitted to SNGPL network at Daudkhel, whereas the oil will be transported to Attock Refinery Ltd.
The production will be gradually increased to 13-15 MMSCFD of gas and 3000 bbls/per day of oil. Subsequently on completion of second phase of the project, OGDCL will also produce 40 metric tons per day of LPG. The preliminary production from Chanda will result in a foreign exchange saving of around US$30 million per year and will contribute significantly towards reducing the oil import bill of the country.
The Chanda field has added a new dimension to petroleum exploration in the NWFP. The Chanda field is located at Shakardarra area in Kohat district of the province. It is a joint venture between OGDCL (72 percent), Government Holdings (Private) Limited (17.5 percent) and Zaver Petroleum (10.5 percent).
The first well Chanda-1 was drilled in 1999 and second well was drilled in 2000. Being the first ever discovery in the NWFP, start of regular commercial production from Chanda field marks an important milestone, which will generate revenues in the form of royalty & GST for the NWFP from oil and gas production.
OGDCL is a public limited company engaged in E&P activities in the country for the last four decades. The company holds the largest share of oil (47 percent) and gas (35 percent) of the total reserves in the country. Its percentage share of total oil & gas production in Pakistan is 34 percent and 28 percent respectively. Presently, OGDCL is 100 percent owner in seven Exploration Licences. In addition, it is the operator as well as a working interest owner in nine Exploration Licences and partner in seven other Exploration Licences operated by oil companies. The company has 35 Mining Leases and Development and Production Lease, which are operated by OGDCL and 30 non-operated Mining Leases and Development & Production Leases.
The OGDCL's current production from all fields was 34,683 barrels of oil, 1,043 MMSCFD of gas, 286 metric tons of LPG and 65 metric tons of sulphur per day, which includes 8,910 barrels per day of oil, 216 MMSCFD per day of gas and 69 metric tons per day of LPG from its non-operated joint ventures.