KARACHI: The Oil and Gas Regulatory Authority (Ogra) has declared the wellhead prices for new gas production fields including Bobi, while the authority also revised the price upwards for Manzalai field to $2.83 per mmbtu against the earlier figure quoted of $2.72.
The price for the Bobi field has been determined since January 2007 but the price has now been set at Rs 382.08 per mmbtu.
Ogra owns 100 percent stakes in the Bobi field, which has an average gas production level of 12mmcfd
This revision is likely to have a sustained positive impact on earnings of Rs 0.32 per share on OGDC’s bottom line in the financial year 2011.
According to the recently announced revision for the first half of the financial year 2011 by the authority, the wellhead gas prices have been increased from between two percent to six percent and some remained unchanged.
The upward revision is attributed to the increase in crude oil prices and rupee depreciation against the US dollar. Arab light crude oil prices averaged $77.29 per barrel from December 2009 to May 2010, a rise of 7.81 percent from the preceding six months.
Similarly, the average HSFO prices soared by 9.8 percent at $459 per ton in the above mentioned period. During the same period, the rupee depreciated against the greenback by 2.15 percent to Rs 84.4.
The PPL would the most to gain from the recent upward revision as a major portion of its production currently comes from the fields of Sui and Kandkhot which contribute almost 75 percent to company’s overall gas production.
Similarly, the wellhead gas price of Adhi field has been increased by 1.7 percent to Rs 126.1 per mmbtu. In addition, the provisional wellhead price for Qadirpur has been raised to Rs 230.76 per mmbtu from Rs 227.68.
