ISLAMABAD, Aug 28: The Oil and Gas Development Company Limited (OGDCL) announced on Wednesday that they have struck oil in Sanghar, Sindh.

Managing director of the company, Maj Gen Pervez Akmal at his first news conference after joining the company three years back, said the oil was being drilled at its Chak-02 well, 20km off Sanghar town, producing 425 barrels of condensate per day.

The reserves could not be ascertained at present but the production would save US$8 million per year.

He added that a detailed investigation was being carried out to estimate the quantum of reserves and other technical data.

Answering a question, he said the condensate could be immediately transported to a refinery but it would have to be examined whether it was economical to transport the natural gas.