Oil & Gas Development Company Limited (OGDCL), Pakistan’s largest E&P firm, has announced the successful commissioning of its Jhal Magsi Development Project in Balochistan. The project is now supplying gas to the Sui Southern Gas Company Limited (SSGCL) network.
The E&P disclosed the development in a Monday notice to the Pakistan Stock Exchange (PSX).
“OGDCL is pleased to announce the successful completion and commissioning of Jhal Magsi Development Project, located in the remote region of Jhal Magsi district, Balochistan,” read the notice.
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The project is currently delivering approximately 14 million standard cubic feet per day (MMSCFD) of pipeline-quality gas, along with 45 barrels per day (bpd) of condensate, the E&P said.
“The gas has been injected into the SSGCL network, following the construction of a 98-kilometre gas transportation line by SSGCL from the Jhal Magsi field to the SSGCL tie-in point,” read the notice.
OGDC shared that development activities commenced in February 2024, following the government approval of incentives for the project, including conversion from the 1997 Petroleum Policy to the Marginal Field Gas Pricing Policy.
“The project was accorded high priority to address the national energy requirement and was executed on an accelerated timeline, overcoming various technical and territorial challenges.
“Scope of work included installation of amine unit, dehydration unit, hot oil package, power generation facilities, and gathering systems,” it said.
The listed company informed that Jhal Magsi Field comprises two wells and is a joint venture with OGDCL as the operator with 56% working interest, Pakistan Oilfields Limited (POL) and Government Holdings Private Limited (GHPL) with 24% and 20% working interests, respectively.
“The successful commissioning of Jhal Magsi Development Project reflects OGDCL’s commitment to national energy security through sustainable development of domestic hydrocarbon resources,” it added.
Arif Habib Limited (AHL) said that the annualised earnings impact on OGDCL and POL is expected to be Re0.48 per share and Rs3.09 per share, respectively.
OGDCL was incorporated on 23 October 1997 under the Companies Ordinance, 1984 (now the Companies Act, 2017). The company was established to undertake exploration and development of oil and gas resources, including production and sale of oil and gas and related activities formerly carried on by Oil and Gas Development Corporation, which was established in 1961.
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