ISLAMABAD, Nov 5: The government on Tuesday granted two petroleum exploration licences to Oil and Gas Development Company Limited (OGDCL). Abdullah Yusuf, secretary petroleum; G.A. Sabri, director general, Petroleum Concessions; and Maj Gen Parvez Akmal, managing director, OGDCL, signed the agreements on behalf of President of Pakistan, Petroleum Concessions and OGDCL, respectively.

Two separate concession agreements were executed between the President of Pakistan and OGDCL for grant of petroleum rights over Block No 3170-1 (Al-Rehman) covering an area of 2063.92 square kilometres in South Waziristan Agency, D.I. Khan district, NWFP, and Musakhel Bazar and Zhob district, Balochistan, and Block No 3372-14 (Fatehjang) covering an area of 2136.46 sq km in Islamabad, Rawalpindi and Attock districts of Punjab province.

Block No 3372-14 (Fatehjang) Zone-1 covering an area of 2136.46 sq km and Block No. 3170-1 (Al-Rehman) with an area of 2063.92 sq km in Zone-II.

The Fatehjang area falls mainly in the Punjab province located in the northern part of the Upper Indus Basin known as Potohar Plateau, which is the active foreland fold and thrust belt in Pakistan. Potential source rocks are reported in Shally horizons of Eocambrian, Premium and Paleocene sequences. Whereas Al-Rehman area lies in South Waziristan Agency, D.I. Khan in NWFP, Musakhel Bazar and Zhob in Balochistan.

OGDCL is currently operator of 15 exploration licences and 35 leases. It produces 23,279 barrels of oil and 581 mm cubic feet of gas per day. A minimum investment of $4.47 million and $2.713 million will be made in Fateh Jang and Al-Rehman blocks, respectively.

During the initial term of these licences, OGDCL will carry out seismic acquisition and its data processing thereof. OGDCL has also planned for drilling of one optional exploration well in third licence year each in Fateh Jang Block up to a depth of 3,000 metres or Lockhart formation and in Al-Rehman Block to the top of Pab or 2,500 metres deep which ever is earlier.

OGDCL will have 100 per cent working interest in each of the blocks. The committed work programme, spread over three years, entails a minimum firm expenditure of $212,500 and optional $2,500,000 for Al-Rehman Block. The work programme includes G&G studies, acquisition & processing of 30 line km new seismic data and reprocessing of 100 line km old seismic data during the first two years and optional drilling of an exploratory well up to top of Pab or 2,500 metre deep, whichever is earlier.

In the Fateh Jang block, OGDCL has committed firm expenditure of $1,473,750 and optional $3,000,000. The work programme includes G&G studies, review of previous data, acquisition processing and interpretation of 50 line km 2D seismic data and 100 sq km 3D seismic data during the three years with optional driving of one exploratory well to a depth of 3,000 metre or Lockhart Formation, whichever is earlier.

Since January 2000 to date, the company has made six major discoveries starting with Chanda, the first ever discovery of hydrocarbons in the NWFP, to four recent discoveries in Sanghar, Sindh and one latest discover of Norai Jagir Well No 1 located in Nim Exploration Licence area near Hyderabad, in a span of seven months.

All six discovered will produce about 8,500 barrels per day of oil and 50 million cubic feet of gas per day, which will contribute $130 million per annum towards import substitution.