Business

OGDCL, PPL, POL win four exploration blocks

Blocks are located in Balochistan and Sindh, and cover total area of about 4,000 sq km, the filing added

By Our Correspondent

January 12, 2024

An oil exploration site can be seen in this image. — AFP/File

KARACHI: The ministry of Energy has provisionally awarded four new oil and gas exploration blocks to three local companies, according to a stock exchange filing by one of the winners on Thursday.

Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL) won the blocks in a competitive bidding round held by the government in November 2023, the filing by OGDCL said.

The blocks are located in Balochistan and Sindh, and cover a total area of about 4,000 square kilometers, the filing added.

“OGDCL participated in the competitive bidding round for exploration blocks held by the Government in November 2023,” the company said. “The DGPC has communicated the provisional award of new exploration blocks to OGDCL, PPL, and POL. These blocks have been awarded based on the work units committed by OGDCL and its JV partners.”

OGDCL said it will be the operator of two blocks, Sehwan (2667-19) in Sindh and Zindan-II (3271-9) in Punjab, with a 100 percent working interest in both.

PPL and POL will be the operators of the other two blocks, Khipro East (2768-7) and Khairpur (2872-2), respectively, with a 70 percent working interest each. OGDCL will be their joint venture partner with a 30 percent working interest. "The provisional award of the blocks is subject to the signing of exploration licenses and concession agreements with the government, as well as the execution of joint operating agreements among the respective joint ventures," the filing said.

The formal award of petroleum rights in the blocks is conditional to the signing of petroleum exploration licenses and execution of petroleum concession agreements with the government, execution of joint operating agreements among the respective JV, and completion of related legal/procedural formalities. OGDCL said the participation in the bidding round was part of its strategy and business plan to invest in its core business, accelerate exploratory activities and augment hydrocarbon reserves balance.