OGDCL likely to contribute $ 2.5b to national exchequer annually: Riaz Khan

The OGDCL MD says the govt will receive Rs 37b as general sales tax (GST)

Oil and Gas Development Company Limited (OGDCL) Managing Director (MD) Riaz Khan said on Sunday that the OGDCL was likely to contribute $ 2.5 billion annually to the national exchequer through the export of petroleum products and the Government of Pakistan would receive Rs 37 billion as general sales tax (GST) and royalty.

While addressing an event, Riaz said the OGDCL would be able to provide 13,000 barrels of crude oil, 360 million cubic feet gas and 750 metric tones of liquefied petroleum gas (LPG) per day after the completion of its six ongoing development projects.

Riaz said that recently the OGDCL had failed to highlight its achievements, products and services and had transformed into a research and development organisation, where experts could not easily share information with the media due to the nature of their work.

Introducing the OGDCL media team, he expressed the hope of better relations between the OGDCL and the media in the future.

He said the OGDCL had shown great performance over the last five years which resulted in growth of the revenue and market share of the company, adding that the shareholders had gained huge profits.

“The OGDCL is the largest exploration and production company on the national level and through its dedication, it will help the country come out of energy crisis in the coming years,” he said, adding that the OGDCL possessed the best technical facilities and experienced and qualified human resource to expedite the exploration and production of oil and gas.

Highlighting the six ongoing OGDCL projects, Riaz said, “Three of these projects are in Sindh, two in Balochistan and one in Khyber Pakhtunkhwa (KP). These development projects will be completed by the end of this fiscal year or early in the next fiscal year.”

He said the OGDCL had acquired the latest seismic technology and during the last 52 years, it had drilled 600 wells, out of which 287 were experimental. “Oil and gas was discovered from 97 well,” he said.

The OGDCL head said the success ratio of the wells drilled by the OGDCL was 1:2.8, the highest in the world.

He said the OGDCL had dug 118 wells during the last five years. Among them, 45 were experimental whereas oil and gas were discovered from 16 wells, he said.

During the last two financial years, 41 wells were excavated, out of which 13 were experimental and oil and gas were discovered from six wells, he said.

The MD said the OGDCL had received the 29^th Management Association of Pakistan (MAP) Corporate Excellence Award, Corporate Social Responsibility Business Excellence Award 2013 and had received the Best Corporate Report Award and the Environment Excellence Award consecutively over the last six years.

He said the OGDCL had signed a memorandum of understanding (MoU) with Transparency International to ensure transparency in the OGDCL’s matters related to selling and purchase.

“The net annual sale of the OGDCL by June 2013 increased to Rs 223.365 billion from the previous year’s Rs 197.839 billion, Riaz said.