ISLAMABAD - Oil and Gas Development Company Limited (OGDCL) has touched its highest level of crude oil production of 50,157 barrels per day (bpd), which is the highest level in the country’s history.
Surpassing psychological barrier of 50,000bpd was part of company's business strategy and through hard work and deployment of latest technology, the target has been achieved, said OGDCL Managing Director Zahid Mir, while addressing a press conference here on Wednesday.
Mir said that the company had acquired 4,000 acres of land in Balochistan and the agreement in this regard was inked with Akbar Bugti. He said that a major portion of this land is encircled by FC for security reason. Now OGDCL had written a letter to the FC inquiring whether it could reduce the inner or outer defence area. Regarding the overall area leased by the OGDCL, he said that the company management had conducted a study in the rig areas of the company and de-hired a huge area which was required.
Flanked by OGDCL board of directors, he said that earlier, the crude oil production of the country’s largest oil and gas explorer has been ranging between 35,000-45,000bpd. OGDCL’s crude oil production stood at 41,000bpd at time of closing last year and the company’s board had given target of 50,000 bpd crude oil production, he said. However, the company had exceeded this target which was a milestone for first time in the history.
He said, “This mile stone has been achieved due to aggressive exploration and we will try to sustain this production, adding that plant on KPD field was going to commission on Wednesday and 100mmcfd additional gas would be added into system in first week of December. He said that 4,000 bpd crude oil and 400 metric tons LPG would also be produced from this field.
He said that OGDCL had embarked on the course of aggressive exploration which was evident from ongoing seismic operations in Balochistan and Khyber Pakhtunkhwa (KPK). He said that for the first time in the country’s history, nine seismic cruise crews were working compared to 4-5 crews in the past, adding that four crews were working in those areas of Balochistan where it had been very difficult to move in past due to poor law and order situation. The two seismic crews in Fata were also in full swing due to better security situation, he added.
He said that company was hoping better prospects of big discoveries in Balochistan and KPK and therefore, major focus was these two provinces. He said that security situation had been improved in these two provinces and therefore, seismic activities were going on. Out of total crude oil production, the share of KPK is 26,000-27,000bpd.
Responding to question regarding Nashpa project, he said that contractors had refused to work on the project during long march. However, the initial inquiry had been held which pointed out that the company did not cash the bid bond which had been expired. Replying to another query, he said that under the policy of the government, OGDCL was paying its share of taxes and meeting its contractual obligations by giving royalties to the provinces.
He said that OGDCL is extracting 400mmcfd gas from Ouch field and are paying billion of rupees in royalty to the province. “If province spends half of the royalty for development of those areas, social and economic conditions can be improved,” he added. Responding to another question, he said that royalty was supposed to spend in districts of gas producing but it did not happen so.
Board of Director Chairman Zahid Muzaffar said that dip in oil prices had provided an opportunity to the company to enhance drilling activities. This was the reason that crude oil production had jumped, he added. He said that the gas availability situation is being improved in the country and extra gas has been pumped in the system to provide relief to the consumers, while another 100mmcfd gas will be added to the system within two to three weeks.