ISLAMABAD, Dec 29: The federal government on Wednesday granted four licences to Oil and Gas Development Company Limited (OGDCL) and Mari Gas Company Limited for petroleum exploration in four blocks of Punjab and Balochistan.

According to a press release issued here the two licences over block nos. 2968-3 (Kohlu) and 2969-7 (Kalchas), both in Zone-II, were granted to OGDC and Mari Gas. While licences for block nos. 3072-2 (Bagh) in Zone-II and 2763-2 (Shahana) in Zone-1 were granted to OGDCL only.

The Kohlu and Kalchas area lies in Kohlu and Dera Bugti Agencies, districts Bar Khan and D.G. Khan of Punjab/ Balochistan province, whereas Bagh area falls in districts Jhang and Toba Tek Singh of Punjab province and Shahana in Districts Kharan and Panjgur, Balochistan.

A minimum firm investment of over $29.32 million and a contingent investment of over $16.50 million would be made in the said four blocks. During the initial term of these licences, the OGDCL shall carry out G&G studies, gravity survey, seismic acquisition, its data processing and interpretation thereof.

The OGDCL has also planned for drilling of three exploration wells in second licence year in Kohlu and Kakhas blocks. Moreover, the company has also given one optional exploration well each in all the four blocks in the third licence year.

The licences and the Petroleum Concession Agreements were signed by Secretary Petroleum and Natural Resources Ahmad Waqar, Director General (Petroleum Concession) G.A. Sabri, OGDCL Managing Director Najam K. Hyder and Mari Gas Managing Director Lt. Gen. (Retd) Muhammad Afzal Janjua.

The signing ceremony was also witnessed by the Federal Minister for Petroleum and Natural Resources Amanullah Khan Judoon, Minister of State Mir Muhammad Naseer Mengal and senior officials of the ministry.

OGDCL is currently operator of 17 exploration licences and 35 leases besides interest in 28 non-operated leases. Currently, it is producing 30,120 barrels of oil, 822 million cubic feet of gas, 278 tons of LPG and 60 tons of sulphur per day.