In a teleconference held by the senior management of Oil and Gas Development Company Ltd. OGDCL, the top management responding to one of the queries informed that it is currently considering plans to expand into the international markets; potentially in Central Asia, Middle East and African region. In the efforts to materialize these inveestments, the company informed that it has entered into agreements with international Oil & Gas Exploration companies which include MOL and Gazprom.
The company executives announced results of the company, reporting Net Sales revenues of Rs. 171.829 billion during the period (FY July ’16 – June ’17). The company reported sales on average net realized oil price of USD 44.04/bbl and an average net realized price of Natural Gas sold at Rs. 239.08 during the reported year. The company’s reported Earnings per share for the period totaled at Rs. 14.83. The company decalred a final cash dividend of Rs. 2.00 per share.
On the production growth front, the Management informed that it currently planning to direct future Capital expenditure towards completion of Nashpa/Mela Development Project LPG Plant. The company expects completion by September, 2017. The company expects crude production of 1120 bbls/day with 340 MTD production of LPG. The management informed that by the end of November, 2017 the field will come online and start production. He said that the full impact of LPG production of KPD will be attained in this year, in addition to that Nashpa field production is expected to reach maximum output. He informed that the company has resolved the issues of de bottlenecking of operations at KPD and the field is being commissioned once again. He said that before the de bottle necking, he said that the project was producing 180 MMscfd per day whereas after the issues have been resolved, the field output is expected to reach full production by the coming week. Commenting on the Jhal Magsi Development Project he said that, the company awaits clarity from Government regarding laying of gas line by SSGCL or some alternate gas buyer.
He also mentioned that due to better security conditions in the province of Baluchistan, the company intends to further explore the region and increase its footprint in the province. The company currently operates 25 New and Old exploration blocks in Baluchistan province and is considering expansion into the province in the coming future.
Commenting on the future of oil prices and the company strategy to deal with the oil price fluctuations, he informed that the company has renegotiated the rate of three rig rates to $17500/day explored. Similarly, the renegotiation of rates was agreed upon for one year with a possibility of extension into next two years.