Oil and Gas Development Company Limited (OGDCL)''s three-member committee is considering a proposal to develop Sara West, Reti/Maru fields and Qadirpur Permeate gas estimated to generate around $18 million revenue per annum as the Sindh government has reportedly refused to pay the wellhead price for Sara West field according to Petroleum Concession Agreement (PCA).
Three-member committee formed by Managing Director OGDCL Naeem Malik includes of Riaz Khan General Manager In-charge Production, Raza Taqvi Acting Manager Process and Plant and Mehtab Chief Marketing officer.
Shazia Marri Sindh Information Minister has been negotiating wellhead price of Sara West with OGDCL administration for the past few days and has indicated an unwillingness to pay more than $1 per mmbtu wellhead price equal to what M/S P I Holding (Pvt)Ltd had offered during the bid in the past that was cancelled after Sindh government claimed its rights to the field after the 18th Amendment.
OGDCL has committed to provide 100 mmcfd gas to Sui Northern Gas Pipeline Limited (SNGPL) for onward supply to Engro fertiliser plant. "The proposal of developing Sara West, Reti/Maru and Qadirpur Permeate gas fields can meet the requirement of 40 mmcfd gas of Engro fertilizer plant," sources said. The Permeate gas transport line from Qadirpur plant to Engro''s Power plant has a capacity to carry 25 mmcfd additional Permeate gas that is being wasted at present resulting in loss of millions of rupees to OGDCL.
Sara West is among the four fields declared dormant by OGDCL. Sources maintained that OGDCL had submitted a development plan of two fields-Sara West and Jakhro field to Director General Petroleum Concession (DG PC) in 2007, however the plan was not implemented.
The OGDGCL committee is considering two proposals to develop Sara West, Reti/Maru gas fields and Qadirpur Permeate gas:
(i) the distance from Maru-1 to commingling point at Daharki on the Suri-Daharki Pipe line is around 15km and the 52MMscfd Commingled gas from Sara West processed gas and Reti/Maru dehydrated gas having the heating value of 517 BTU/Scf may be transported to SNGPL Metering station near the Engro ''Fertiliser Plant.
(ii) OGDCL has already committed to supply 100-MMscfd processed gas from Qadirpur gas field to SNGPL for onward supply to Engro for their newly constructed Fertiliser Plant; and (ii) to commingle 40 MMscfd processed gas of 300Btu/scf with 12 MMscfd Medium Btu (ie 778 Btu/scf) of Reti/Muro gas, the 52 MMscfd of 517 BTU/Scf commingle gas may further mixed with Qadirpur Permeate gas of 25-30 MMscfd having 700 BTU/scf, 77 MMSCFD of 576 Btu/Scf gas could be supplied to Engro Energy for the extension of their power plant located at Ghotki Sindh. Approximately 200MW of electricity may be generated and put on Wapda transmission within two years.