The cash-strapped country would see some ease in its burgeoning oil import bill as the Oil and Gas Development Company Limited (OGDCL) has discovered what the company said were, “significant reserves” of hydrocarbons in the Khyber Pakhtunkhwa province. “Significant reserves of hydrocarbons have been found,” the OGDCL told its shareholders at the stock exchanges in London, Karachi, Islamabad and Lahore through a notice Monday.
Oil import bill: According to Federal Bureau of Statistics data, during the first quarter of current fiscal year the country’s oil import bill accumulated to $3.827 billion, registering an increase of 62.46 per cent when compared with $2.356 billion of the same quarter last year. Of the total imports, the crude oil import ballooned by 98.97 per cent to $2.506 billion against $1.259 billion of the last corresponding period.
Cushioning oil imports: Amidst rising demand for crude oil, such discoveries by the OGDCL might comfort the country’s economic managers who are supposed to be concerned over the increasing oil import bill that might offset the positive impact of healthy dollar inflows to the cash-strapped country on account of worker remittances and exports. The new reserves of oil and gas have been found by a join venture comprising OGDCL, Pakistan Petroleum Limited (PPL) and Government Holding Private Limited (GHPL) from its appraisal well Nashpa 02 located in District Karak of Khyber Pakhtunkhwa.
“This discovery would add to the hydrocarbon reserves base of the company and (the) joint venture partners,” said Company Secretary Erum Ali Aziz. The company secretary believes that the new finding would also bring “significant savings” to the country in terms of oil import bill. She went on to say that the structure of the newly-discovered well was delineated, drilled and tested utilising indigenous expertise. She said the well was drilled down to the depth of 4340 metres targeting to test the oil and gas potential of Datta, Shinwari, Samanasuk, Lumshiwal, Hangu and Lockhart formations.
Potential discoveries: The first targeted zone called “Datta Sandstone” had been tested and produced 3370 barrels per day of crude oil and 11 MMCFD gas through 32/64” coke at well head flowing pressure 38700 Psi, she said. Testing of another four potential reservoir formations, the secretary said, would also be undertaken wherein similar encouraging results are expected. The full flow of potential of this well and the extent of the discovery would be determined after completing the testing phase. The OGDCL and all listed firms are required under Clause (xxiii) of the Code of Corporate Governance to notify its stakeholders in the local and international stocks markets of all such developments that could affect the price of its shares.
