Islamabad, October 24, 2024 – Oil & Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) firm, has successfully commenced oil and gas production from its exploratory well Baloch-2, situated in the Sanghar district of Sindh.
The company shared the development in an official notice to the Pakistan Stock Exchange (PSX) on Thursday.
“We are pleased to announce that the well has now been brought into production in the Sinjhoro block,” the company stated, highlighting the achievement. OGDCL credited its in-house technical expertise for the successful delineation, drilling, and testing of the structure, emphasizing the significance of the milestone for Pakistan’s energy sector.
Baloch-2, drilled to a depth of 3,920 meters, is currently yielding 350 barrels of oil per day (bpd) and 5 million standard cubic feet of gas per day (mmscfd). OGDCL noted that the production from the well is being processed at the Sinjhoro Processing Plant and the gas is being integrated into the Sui Southern Gas Company Limited (SSGCL) network, ensuring seamless distribution.
The project is a collaborative effort between OGDCL, which holds a 76% working interest, Orient Petroleum Inc. (19%), and the Government Holdings Private Limited (GHPL) with a 5% stake. The joint venture aims to accelerate exploration, drilling, and production activities to bolster Pakistan’s energy security.
“OGDCL remains focused on fast-tracking energy exploration and development to strengthen the country’s energy security and contribute to sustainable development,” the company reiterated.
This latest production start follows the discovery of gas condensate reserves at the same Baloch-2 well back in August. At the time, the company had described the discovery as a significant milestone in the Sinjhoro block, particularly from the Sembar Formation, marking a new chapter in the country’s energy exploration efforts.
In its recent financial report, OGDCL announced a profit-after-tax (PAT) of Rs208.98 billion for the fiscal year ending June 30, 2024. While this figure represented a 7% decline compared to the Rs224.62 billion in the previous fiscal year, the company still demonstrated strong financial performance. OGDCL also declared a final cash dividend of Rs4 per share (40%).
As Pakistan continues to face challenges in meeting its growing energy demand, the development of new oil and gas reserves such as Baloch-2 is expected to play a pivotal role in supporting the country’s energy needs and driving economic growth.