OGDCL revives key oil well in Sindh, resumes hydrocarbon production

TANDO ALLAH YAR: Oil and Gas Development Company Limited (OGDCL) has brought an oil well back into production in the Tando Allah Yar district of Sindh.

In a notice to Pakistan Stock Exchange (PSX) on Tuesday, OGDCL announced the revival of the Dars West-2 Well, which has resumed hydrocarbon production from a new section, the B-Sand of the Lower Goru Formation.

OGDCL highlighted that this success demonstrates its dedication to improving oil recovery through innovative, rigless techniques.

Earlier, in December 2023, the company had completed work on the well in the C-Sand section and had connected it to the production system by January 2024. But, by September, production had slowed, and the well stopped flowing.

A detailed study, including pressure and temperature checks, showed there was no more production potential in the C-Sand.

So, the team isolated that part of the well and shifted to the B-Sand. This change has now resulted in the well producing 200 barrels of oil per day, 8 million cubic feet of gas, and 37 metric tons of liquefied petroleum gas (LPG) daily.

The gas is being processed at OGDCL’s Kunnar Pasakhi Deep-Tando Allah Yar Plant and fed into the Sui Southern Gas Company Limited (SSGCL) network, adding to the national gas supply.

The well is located within the Dars West Development and Production Lease area. OGDCL holds a 77.5 per cent share, while the Government Holdings (Private) Limited (GHPL) has a 22.5 per cent interest.

Recently, OGDCL also revived a heavy oil well in its northern field in Punjab.

OGDCL reported a profit-after-tax (PAT) of Rs41.02 billion for the quarter ending on September 30, 2024, which is over 16 per cent lower than the Rs49.03 billion earned in the same period last year. The company’s earnings per share (EPS) dropped to Rs9.54 from Rs11.40 in the previous year.

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