Karachi, June 12, 2025 – In a major milestone for Pakistan’s energy sector, Pakistan International Oil Limited (PIOL) has officially signed a production concession agreement (PCA) for the development of a strategic offshore block in Abu Dhabi, marking a new chapter in the country’s regional energy collaboration.
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OGDC’s profit jumps 42% YoY in 9MFY23
Oil and Gas Development Company Limited (OGDC) on April 27, 2023 announced its financial results for 9MFY23, reporting a profit after tax of PKR 159.64 billion (EPS: PKR 37.12) compared to PKR 112.04 billion (EPS: PKR 26.05) in 9MFY22, reflecting an increase of 42% YoY.
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Gas price hike to further push up inflation
KARACHI: The recent approval by Economic Coordination Committee (ECC) to increase the prices of gas will further push up the inflation, analysts said.
The country is already facing the alarming rise in inflation following sure in prices of petroleum products and electricity tariff.
The analysts at AKD Securities said that ECC approved hike in gas tariff after a break of almost two years, which was last increased in October 2020.
READ MORE: Gas price hike report baseless: Musadiq Malik
“The latest increase will put further pressure on already sky rocketing inflation, as manufacturers are likely to pass on the impact, resulting in higher product prices and slowdown in demand,” the analysts said.
However, the aforementioned hike will put brake on ballooning gas circular debt, which currently stands at Rs1.23 trillion. As per new flows, the move will generate Rs666 billion in revenue for gas distribution companies.
Export oriented sector including textile companies will also feel the pinch of this increase as the proposed hike for these sector stands at 77 per cent and 38 per cent, respectively.
This development will severely impact country’s exports due to rise in manufacturing cost and higher financing rate.
READ MORE: Govt. halts gas supply to export industry: APTMA
The proposed weighted average gas prices for domestic consumers stands at Rs885/mmbtu, up by 90 per cent. The government has also made some changes in domestic slabs which has now reduced to 5 as compare to 7 slabs earlier.
The gas bill of consumers who are using gas up to 400 cubic meter are likely to be affected most, due to increase of 253 per cent in tariff.
They said that the inflationary impact of the said development will be 66 basis points on Month on Month (MoM) basis, taking average inflation to 21.5 per cent for the current fiscal year.
READ MORE: FBR exempts sales tax on oxygen gas import
The gas tariff for fertilizer plants is proposed to increase by 42 per cent and 82 per cent for feed and fuel gas, respectively. As per estimates, this will increase cost of urea manufacturing by Rs420/bag for FFC, while the increase for EFERT is Rs340/bag, due to its reliance on PP12 based gas pricing.
The manufacturers are likely to pass on any increase in gas tariff as they have already increased urea price by Rs350/bag on 1st July.
The increase in gas prices is expected to bode well for the E&P sector, including Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), and Mari Petroleum Company Limited (MARI), as this would lead to improved cash collection for the companies in lieu of gas supply.
READ MORE: OGDCL discovers oil, gas reserves in Sindh
As of March 2022 quarter end, OGDC’s receivables from SNGP stood at Rs142.42 million (Rs33.11/sh), whereas those from SSGC stood at Rs163.58 million (Rs38.03/sh). Similarly, PPL’s receivables stood at Rs141 million (Rs51.82/sh) from SSGC and Rs181.8 million (Rs66.81/sh) from SNGP. Whereas MARI’s receivables stand at Rs5.9 million (Rs44.90/sh) from SSGC and Rs8.3 million (Rs61.90/sh) from SNGP.
Due to liquidity issues, the companies have historically faced challenges in expanding their exploration activities. During 9MFY22, 61 per cent of PPL’s total sales were derived from SNGP and SSGC, hence PPL stands to be a major beneficiary of the proposal gas price hike.
The much waited tariff increase is a positive development for gas distribution companies as it will improve their cash flows. Similarly, this will provide a breath of fresh air to E&P sector in the form better liquidity, thus allowing them to expand their exploration activities.
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OGDCL discovers huge gas reserves in Khyber PakhtoonKhwa
KARACHI: Oil and Gas Development Company Limited (OGDCL) on Tuesday announced huge amount of gas discovery and condensate from exploratory well at Kohat, Khyber PakhtoonKhwa.
In a notification to Pakistan Stock Exchange (PSX) and London Stock Exchange Plc., the company said that the joint venture of Kohat E.L. comprising OGDCL as operator (50 percent), Mari Petroleum Company Limited (MPCL) (33.33 percent) and Saif Energy Limited (SEL) (16.67) percent, has discovered gas and condensate from its exploratory efforts at Well Togh-01, which is located in district Kohat, Khyber PakhtoonKhwa Province.
Togh Well#01 was drilled and tested using OGDCL’s in house expertise in consultation with Kohat Joint Ventures MPCL and Saif Energy. “The well was drilled down to the depth of 3200 meters. The well was tested at the rate of 12.7 million standard cubic feet per day (MMSCFD) gas, 240BPD condensate through choke size 32/64” at well head flowing pressure 2478 Pounds per Squre Inch (Psi) from Lumshiwal formation.
The company said that the discovery of Togh Well # 01 is the result of aggressive exploration strategy adopted by Kohat the Joint Venture. It has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL, Joint Venture partners and of the country.
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OGDCL announces discovery of oil and gas in Sindh
KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced discovery of oil and gas in District Sanghar of Sindh province.
In an information to Pakistan Stock Exchange (PSX) it said that the joint venture of Bitrism Block comprising OGDCL as operator 95 percent and Government Holdings (Pvt.) Limited (five percent carried) has discovered oil and gas from its exploratory well Pandhi # 01, which is located in District Sanghar, Sindh Province.
It said that the structure of Pandhi # 01 was delineated, drilled and tested using OGDCL’s in house expertise. The well was drilled down to the depth of 3600 meters. The well has tested 9.12 million standard cubic feet per day (MMSCFD) of gas and 520 barrels per day of oil through choke at wellhead flowing pressure of 840 pounds per square inch (Psi) from lower Goru (Basal Sand) Formation.
The discovery of Pandi # 01 is the result of aggressive exploration strategy adopted by the company in pursuance of the government’s directive to explore and produce local oil and gas. It would add to the hydrocarbon reserves of OGDCL and the country.
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OGDCL discovers huge deposits of gas in Sindh
KARACHI: Oil and Gad Development Company Limited (OGDCL) has discovered huge amount of gas at exploratory well Mangrio 01, District Tando Muhammad Khan, Sindh Province.
In a statement on Monday, the company said that the structure of Mangrio Well 01 was drilled and tested using OGDCL’s in house expertise.
The well was drilled down to the depth of 2676 meters. The well has tested 10.44 MMSCFD gas, 120 BPD condensate through choke size 32/64” at Wellhead flowing pressure 2085 psi from lower Guru B-Sand.
The discovery of Mangrio Well is the result of aggressive exploratory strategy adopted by the company.
“It has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL and of the country,” it added.
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Preliminary report on Karachi deep sea drilling submitted
KARACHI – A multinational joint venture comprising ENI, Exploration and Production Pakistan BV (EEPP), and Pakistan Petroleum Limited (PPL) has initiated the preliminary phase of offshore drilling for oil and gas in Karachi’s ultra-deep waters.
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