The government on Wednesday granted four petroleum exploration licences. Two were given over block Nos 2968-3(Kohlu) and 2969-7(Kalchas) and two for zones in Bagh and Shahana areas covering 2459.11 sq kms and 2068.32 sq kms respectively. The licences were granted to Oil and Gas Development Company Limited (OGDCL and Mari Gas Company Limited.
The Kohlu and Kalchas area lies in Kohlu and Dera Bugti Agencies of Punjab/Balochistan provinces whereas Bagh area falls in districts Jhang and Toba Tek Singh of Punjab province and Shahana in districts Kharan and Panjgur, Balochistan.
A minimum investment of $29.32 million and a contingent investment of $16.50 million will be made in the four blocks. During the initial term of these licenses, OGDCL shall carry out G & G studies, gravity survey, seismic acquisition, data processing and interpretation thereof.
The OGDCL has planned for drilling of three exploration wells in second license year in Kohlu and Kalchas blocks. Moreover, the company has also given one optional exploration well each in all the four blocks in the third license year.
OGDCL, the largest oil and gas company, currently operates 17 exploration licenses and 35 leases besides having interest in 28 non-operated leases. It is presently producing 3400 barrels of oil, 950-mmcfd gas from shallow reservoir.
The licenses and the petroleum concessions agreement were signed by Ahmed Waqar, Secretary Petroleum and Natural Resources on behalf of Pakistan, G A Sabari Director General Petroleum Concession, Najam Kamal Hyder, Managing Director Oil and Gas Development Company Limited, and Lieutenant General Muhammad Afzal Janjua (Retd) Managing director, MGCL.
The signing ceremony was witnessed by the Federal Minister for Petroleum and Natural Resources, Amanullah Khan Jadoon and Minister of State Mohammad Naseer Mengal.
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