ISLAMABAD: Pakistan’s biggest energy firm Oil and Gas Development Company Limited (OGDCL) planned to explore international markets for gas and oil production.
OGDCL and Hungarian MOL Group already have a joint venture in Tal block, which is an oil and gas field located in Kohat district of Khyber Pakhtunkhwa.
The renewed strategic cooperation under an agreement signed between the two companies, however, envisages exploration and production of oil and gas fields in Pakistan, Middle East, African continent and commonwealth of independent states, especially the Russian Federation and Kazakhstan.
“We look forward to expanding our relationship to E&P (exploration and production) opportunities internationally, while continuing to grow our relationship in Pakistan,” Zahid Mir, managing director at OGDCL said in a statement. “Our MOU (memorandum of understanding) is aligned with OGDCL’s internationalisation strategy of developing a footprint outside Pakistan, through cooperation with high quality E&P companies,” Mir added.
Graham Balchin, managing director and chief executive officer at MOL Pakistan Oil and Gas Company BV, a subsidiary of MOL Group, and Zahid Mir, managing director at OGDCL signed the agreement at the Prime Minister Secretariat. OGDCL owns the largest number of recoverable hydrocarbon reserves in the country, accounting for around 60 percent of oil and nearly 40 percent of gas.
Alone during the last fiscal year, the company drilled more than 20 wells and added 18 new wells to its production system. The company’s average daily net saleable production of crude oil stood at 43,989 barrels, natural gas 1,051 million metric cubic feet, liquefied petroleum gas 411 tonnes and sulphur 39 tonnes during the last fiscal year.
Zahid Muzaffar, chairman at OGDCL said the strategic cooperation between the two companies will pave a new relationship between OGDCL and MOL Group to explore hydrocarbon resources in Pakistan and abroad.
The two oil exploration and production companies, under the agreement, will exchange technical knowledge and industry experiences, allowing for further discussion of potential international upstream growth synergies and possible partnerships.
MOL Group is also the biggest foreign producer of oil and gas in Pakistan with over 75 years of E&P experience. “The company has acquired institutional knowledge, that coupled with MOL Group’s technological edge, can help create value beyond MOL Group’s current operational portfolio in Pakistan,” Berislav Gaso, executive vice president upstream at MOL Group said. “We look forward to working with OGDCL in and beyond Pakistan. It has a successful record of creating value through its upstream activities in Pakistan and many other countries.” Ali Murtaza Abbas, group regional advisor Middle East, Africa and Pakistan at MOL Group said the cooperation will form a technically and financially sound foundation, “on which we can build our future business.”
“Covering the highlighted regions of this partnership, there are numerous opportunities and potential of hydrocarbon reserves that can be harnessed for the future energy needs of not just the region but in fact the world,” Abbas added.