Govt awards 5 oil and gas exploration licenses to OGDCL

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The government has executed five exploration blocks to oil and gas development company limited (OGDCL) to attract a firm investment commitment of US $ 13.32 Million.

The government of Pakistan executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over Block No.3372-26 (Hazro), Block No. 2972-7 (Vehari), Block No. 2972-8 (Sutlej), Block No.2668-23 (Khewari East) and Block No.3471-1 (Nowshera) with Oil & Gas Development Company Limited (OGDCL).

This will lead to the exploration of additional oil and gas in the country.

Mr. Muhammad Hammad Azhar, Minister for Energy (Petroleum Division) graced the ceremony. Dr. Arshad Mahmood, Secretary Petroleum Division, Mr. Abdul Jabbar Memon, Director General Petroleum Concessions signed them. Mr. Shahid Saleem Khan, Managing Director, OGDCL signed on part of the company.

The Minister hoped expressed that execution of the Exploration Licences and PCAs would boost investment in the petroleum sector. They will also contribute to bridging the energy demand and supply gap.

Hazro Block covering an area of 653.74 sq. kms in located in the district of Attock, Swabi, Haripur while Vehari Block covering an area of 2487.28 sq. kms is located in the district of Bahawalpur, Vehari, and Lodhran, and Sutlej Block covering an area of 2312.56 sq. kms is located in Bahawalpur, Bahawalnagar, Vehari and Khanewal.

Khewari East covering an area of 1451.53 sq. km. is located in Khairpur district. Nowshera Block covering an area of 1711.06 sq. km is located in Charsada, Mardan, Swabi, and Nowshera.

The minimum firm work commitment for these blocks amounts to US $ 13.32 Million for the period of three years. Companies will have to spend a minimum of US $ 30,000/year in each block on social welfare schemes.

The annual social welfare obligation in respect of these 05 blocks is the US $ 150,000.

OGDCL is a Public Limited Company and making efforts to explore oil and gas in the country for the last five decades. OGDCL is maintaining the largest share of Oil 41% & Gas 36% of the total oil and gas reserves in the country.

OGDCL operates 46 exploration licenses. It has a working interest owner in 7 other exploration blocks operated by various E & P companies. Its production stands at 36,058 BOPD of Oil, 1023 MMCFD of gas, 778 M. Tonnes of LPG, and 51 M. Tonnes of Sulphur per day.