This 3rd of July saw the signing of the Memorandum of Understanding on cooperation in the oil and gas sector with Oil and Gas Development Company Limited (OGDCL), the national oil and gas company of Pakistan, in the St. Petersburg headquarters of Gazprom International.
The document was signed by Managing Director and CEO Andrey Fick on behalf of Gazprom International, PJSC Gazprom’s operator specializing in upstream projects, and Managing Director and CEO Zahid Mir on behalf of OGDCL.
The Memorandum is a basis for the development of intercompany cooperation in the energy sector and defines the key joint work streams. Particularly, the parties have agreed to develop projects on the exploration and development of the hydrocarbon fields in the Islamic Republic of Pakistan and third countries, examine the possibilities of supplying gas to the Republic and other states in the region, and discuss other initiatives of mutual interest. In addition, the companies intend to adopt and use latest technology in oil and gas production, as well as provide both mutual technical support to develop remote and marginal fields and comprehensive drilling services.
Pakistan’s largest oil and gas company, OGDCL is the national flagship in hydrocarbon exploration and production. OGDCL leads the market in reserves, production, and the quantity of oil and gas areas developed in the Islamic Republic of Pakistan.
As of 30 June 2016, its project portfolio included sixty own and joint licenses for the exploration of blocks totaling 112,453 sq. m (more than 30% of the country’s entire territory under study).
The government of the Islamic Republic is OGDCL’s major shareholder with 74.97% of the company’s shares. OGDCL’s securities have been traded on the London Stock Exchange since December of 2006.
In recent years, there has been a large gap between supply and demand in Pakistan as the domestic and industrial consumption of natural gas and electric energy increases. Therefore, the national government is adopting measures to intensify exploration activities, upgrade the production systems, transfer and distribute energy resources, as well as develop the Republic’s generating capacities.
Pakistan produces circa 40 billions of cu. m of natural gas and circa 5 millions of oil per year, according to statistical data. The proven national reserves of hydrocarbons are estimated at 500 billions of cu. m of natural gas and over 1 billion of tons of liquid hydrocarbons.
With that in mind, OGDCL’s reserves in 2015 account for 59% of oil and 36% of natural gas. The company produces 48% of the total amount of oil and 28% of natural gas produced in the nation, according to 2016 data.