Staff Report:
Oil & Gas Development Company (OGDC) has completed the drilling of two appraisal wells in the Abu Dhabi offshore Block-5.
Regarding the Abu Dhabi Block-5, the drilling of two appraisal wells has been completed, while the drilling of an exploration well is currently in progress,” OGDCL informed during the corporate briefing here on Friday.OGDCL Announces Financial Results for Quarter Ended
UAE government had awarded the offshore block to the Pakistani firms where the work had started now.
Oil & Gas Development Company (OGDC) conducted its Corporate Briefing Session (CBS), where the management discussed financial results and future outlook.
OGDC’s cash collection ratio improved to 121% in 1QFY25. Management expects the pace of cash collection to continue at least between 90-100% of billing.
Management highlighted that various steps are under consideration to resolve the buildup of previous circular debt.
The ongoing feasibility study for the Reko Diq project is expected to be completed by December 2024. Project financing activities are ongoing.
OGDC drilled 13 wells in FY24, compared to a total of 60 wells drilled by the industry.
OGDC’s oil production stood at 33,117 bpd in FY24, and if there were no curtailments, production would have been 33,495 bpd. Similarly, OGDC’s gas production was 717 mmcfd, and without curtailments, it would have been 771 mmcfd.
Management highlighted that there is a natural decline of 7-8% in oil and 10-12% in gas production. However, in the case of OGDC, management has managed to improve production in the current year, and production optimization activities are ongoing, which are expected to further enhance production in the medium term.
The total oil reserves of the country stand at 243 MMBBL, with OGDC holding a 51% share. In gas, the total reserves are 18,472 BCF, and OGDC holds a 32% share.
Regarding lease expiry, management highlighted that only the leases of smaller fields are set to expire in 2025.
Bettani-2 will start producing from January 2025, and the company is also planning to conduct 3D seismic surveys in Bettani.
Key challenges the company faces include local procurement rules by PPRA, the pileup of previous circular debt, forced curtailment of gas by SNGPL and UCH Power, and the security environment.
