ISLAMABAD, Nov 8: The government on Saturday granted two petroleum exploration licences to the Oil and Gas Development Company Limited over Block No 3372-17 (Dhudial) Zone 1, covering an area of 313.53 square kilometres and Block No 3071-2 (Rachna) with an area of 2436.47 square kilometres in Zone II.

According to a press release, Dhudial area lies in district Rawalpindi and Chakwal, whereas Rachna area falls in Leiah, Jhang, Toba Take Singh, Khanewal and Muzaffargarh districts of Punjab province.

OGDCL is currently operator of 15 exploration licences and 35 leases, besides interest in 28 non-operated lease. Currently they are producing 20,136 barrels of oil, 587 million cubic feet of gas, 202 tons of LPG and 24 tons of sulphur per day.

A minimum firm investment of over $2 million and a contingent investment of $4.5 million will be made in the blocks concerned. During the initial term of these licences, OGDCL will carry out G&G studies, seismic acquisition and its data processing thereof.

OGDCL has also planned for drilling one optional exploration well in third licence year each in Dhudial block up to a depth of 3,800 meters or Khewara formation and in Rachna Block to the depth of 1,500 metres of Samana Suk formation whichever is earlier.

The licences and the petroleum concession agreements were signed by petroleum secretary M. Abdullah Yusuf, Petroleum Concession DG G.A. Sabri and OGDCL MD Najam Kamal Hydre.