OGDCL discovers ‘significant’ hydrocarbon reserves in Sindh

Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production company, discovered “significant” hydrocarbon reserves at Khewari block in the Khairpur district, Sindh, reported 24NewsHD TV channel.

The state-owned company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“The OGDCL announces a significant gas-condensate discovery from its exploration efforts at Kharo-1, a well drilled in the Khewari exploration license area, located in District Khairpur, Sindh,” read the notice.

Oil and gas reserves were found at a depth of 3762 meters in Kharo 1 well in Khairpur district. Preliminary tests found gas reserves of 14.3 million cubic feet per day, OGDCL said. Kharo 1 corner has also found reserves of 93 bpd crude oil, new oil and gas reserves will save millions of dollars annually.

OGDCL shared that it operates the Khewari Block, holding a 95% working interest, with GHPL (Government Holdings Private Limited) as a joint venture partner holding a 5 percent working interest. “The execution of drilling and testing operations for the Kharo-1 well structure, undertaken with the proprietary expertise of OGDCL, achieved a depth of 3,762 meters,” read the E&P notice.

“Subsequent testing procedures registered 14.3 million standard cubic feet per day (MMSCFD) of gas, in addition to 93 barrels per day (bbls/d) of condensate. The results were attained at a 32/64-inch choke size, under a wellhead flowing pressure (WHFP) of 2,737 pounds per square inch (psi), emanating from the massive sand strata of the Lower Goru Formation,” it added.

OGDCL said that the latest discovery at Kharo-1 would significantly enhance the hydrocarbon reserves of the company and its esteemed joint venture partners, and ultimately contribute to the national energy resources of the country.

Last month, Government of Pakistan executed the Petroleum Concession Agreements (PCA) & Exploration Licences (EL) for eight blocks with four companies: United Energy Pakistan Limited (UEP), OGDCL, Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL).

As per details, OGDCL was granted license for blocks including Kotra East (Balochistan), Murradi (Sindh), Sehwan (Sindh) and Zindan-II (Punjab).

As per the company’s latest financial results, OGDCL registered net sales of Rs 120.141 billion during 1QFY24 which ended 30th September 2023. The company’s Profit before Taxation during the period was Rs 86.174 billion.

Reporter Ashraf Khan