Oil & Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has commenced production of oil and gas from its exploratory well Baloch-2 located in district of Sanghar, Sindh.
The E&P shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“We are pleased to announce that the well has now been brought into production in Sinjhoro block,” OGDCL said in its notice.
OGDCL finds new gas reserves in Sindh
It said that the company’s in-house expertise was key in delineating, drilling, and testing the structure.
“Drilled to a depth of 3,920 meters, the well is currently producing 350 barrels per day (bpd) of oil and 5 million standard cubic feet per day (mmscfd) of gas,” it said.
OGDCL informed the production is connected to the Sinjhoro Processing Plant, with gas being injected into the Sui Southern Gas Company Limited (SSGCL) network.
This venture is a collaboration between OGDCL (76% working interest), Orient Petroleum Inc. (19%), and GHPL (5%).
“OGDCL is focused on fast-tracking exploration, drilling, and production to enhance national energy security and contribute to Pakistan’s sustainable development,” the company said.
Back in August, OGDCL announced the discovery of gas condensate reserves at Baloch-2 well.
The discovery marked the first milestone in Sinjhoro block from Sembar Formation, said the listed company back then.
As per the company’s latest financial results, OGDCL reported a profit-after-tax (PAT) of Rs208.98 billion for fiscal year ended June 30, 2024.
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Earnings registered a decline of nearly 7% as compared to Rs224.62 billion in the same period of the previous year (SPLY).
The company also announced a final cash dividend of Rs4 per share i.e. 40%.
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