Karachi, November 15, 2024 – The Oil and Gas Development Company Limited (OGDCL) has announced that the feasibility study for the Reko Diq copper-gold project is expected to conclude by December 2024. The update came during OGDCL’s Corporate Briefing Session (CBS) on Friday, where the company outlined its financial performance and future outlook.
Strong Financial Performance
OGDCL reported a robust cash collection ratio of 121% in the first quarter of FY25. The management anticipates maintaining a collection rate of 90-100% of billing in the coming months, emphasizing ongoing measures to address circular debt challenges.
Reko Diq and Other Key Projects
Project financing activities for Reko Diq are currently underway alongside the feasibility study. Highlighting its drilling efforts, OGDCL revealed that it drilled 13 wells in FY24, contributing to a total of 60 wells drilled across the industry. In Abu Dhabi’s Block-5, two appraisal wells have been completed, with exploration drilling ongoing.
Production and Reserve Insights
OGDCL’s oil production for FY24 stood at 33,117 barrels per day (bpd), slightly below the potential 33,495 bpd due to curtailments. Gas production was 717 mmcfd, falling short of the potential 771 mmcfd. Despite natural declines of 7-8% in oil and 10-12% in gas, the company managed to improve output through optimization measures, with further enhancements expected in the medium term.
The company holds 51% of Pakistan’s total oil reserves, amounting to 243 MMBBL, and a 32% share in gas reserves, totaling 18,472 BCF.
Future Prospects and Challenges
The Bettani-2 field is set to commence production in January 2025, while 3D seismic surveys in the area are also planned. OGDCL’s management acknowledged several operational challenges, including procurement constraints under PPRA rules, previous circular debt accumulation, forced gas curtailments by SNGPL and UCH Power, and security concerns.
Outlook
With the Reko Diq feasibility study nearing completion and production optimization strategies in place, OGDCL remains committed to addressing challenges and capitalizing on growth opportunities. The company’s strategic focus on resource development and operational efficiency positions it well for sustained progress in Pakistan’s energy sector.
