ISLAMABAD: Petroleum Division on Monday awarded five new Exploration and Production (E&P) blocks to Oil and Gas Development Company (OGDCL) in line with the government strategy to step up oil and gas exploration activities in potential areas across the country.
The signing ceremony, witnessed by Minister for Energy (Petroleum Division), was held to execute Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over Block No.3372-26 (Hazro), Block No. 2972-7 (Vehari), Block No. 2972-8 (Sutlej), Block No.2668-23 (Khewari East) and Block No.3471-1 (Nowshera), a news release said.
Secretary Petroleum Dr Arshad Mahmood and Director General (Petroleum Concessions) signed the PCAs and ELs on behalf of the government, while OGDCL’s Managing Director Shahid Saleem Khan represented his company.
The Energy Minister said the accelerated efforts would bear fruit for the country in the form of additional hydrocarbon reserves during the next few years.
Hammad Azhar expressed confidence that the execution of the ELs and PCAs would not only enhance investment in the petroleum sector but also contribute to bridging the energy demand and supply gap.
As per the details, Hazro Block covering an area of 653.74 square-kilometre (sq. km) is located in the district of Attock, Swabi, Haripur, Vehari Block consisted of an area of 2487.28 sq. km is located in the district of Bahawalpur, Vehari and Lodhran, Sutlej Block spanned over an area of 2312.56 sq. km is located in Bahawalpur, Bahawalnagar, Vehari and Khanewal, Khewari East covering an area of 1451.53 sq. km. is located in Khairpur district, while Nowshera Block covering an area of 1711.06 sq. km is located in Charsada, Mardan, Swabi and Nowshera.
“Minimum firm work commitment for these blocks is US $ 13.32 Million for the period of three years. Under the PCAs and ELs, the E&P companies are obligated to spend a minimum of $30,000 per annum in each block on social welfare schemes. The annual social welfare obligation in respect of the awarded five blocks is $ 150,000.
The OGDCL is a Public Limited Company engaged in E&P activities in the country for the last five decades. It holds the largest share of oil 41 per cent and gas 36 per cent of the total reserves in the country.
The company’s percentage share of total oil & gas production in Pakistan is 47 per cent and 29 per cent, respectively.
OGDCL is the operator of 46 exploration licences and working interest owner in seven other exploration blocks operated by various E & P companies.
OGDCL is currently producing 36,058 barrels of oil per day and 1,023 million cubic feet per day of gas, 778 Metric Ton (MT) of Liquefied Petroleum Gas (LPG) and 51 MT of Sulphur per day.

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