OGCL resolves dispute to start commercial output

PESHAWAR: State-owned Oil and Gas Development Company (OGDCL) has succeeded in resolving a yearlong conflict with the local authorities at its newly-developed oil and gas field in Kohat, hoping to start commercial production in a couple of months, officials said on Friday.

A senior official said local authorities were demanding jobs and free gas supply from Dhok Hussain. “The issue has been resolved,” the official added. “Gas and oil would be injected in the system as soon as SNGPL (Sui Northern Gas Pipelines) completes laying of pipelines.”

The field operator OGDCL discovered 12 million metric cubic feet / day (mmcfd) of gas and 300 barrels of condensate from Dhok Hussain gas field in 2018. Laying of pipelines has been stopped since then following the resistance from local members of the parliament, a spokesperson said.

“After considerable efforts and utmost hard work by Oil and Gas Development Company Limited management, issue of gas supply from Dhok Hussain gas field has been resolved and soon OGDCL will start commercial production from the field,” the spokesperson said in a statement.

The official said the dispute was resolved during a meeting held under the chairmanship of Commissioner Kohat Division. Member of Provincial Assembly Amjad Khan Afridi, DIG Police Kohat, DPO Kohat, Deputy Commissioner Kohat, OGDCL Regional Coordinator Kohat and representatives of SNGPL Transmission and Distributions Kohat division attended the meeting.

The meeting discussed the issue of provision of gas within five kilometers radius. SNGPL officials said OGRA has already approved gasification within certain radius of Dhok Hussain. The initial survey of the gasification within five kilometer radius of Togh Well-1 has also been completed and “case is under process for fulfillment of codal formalities,” the spokesperson said.

The spokesperson said the issue of Dhok Hussain transmission line and Togh Well-I flowline has been resolved and soon OGDCL will start commercial production from the field. “It was causing a huge financial loss to the OGDCL and national exchequer as well.”

The official said exploration and production of a field generally requires Rs1 billion of investment. The field has been lying idle for over a year, halting sales and thus hurting the OGDCL’s revenue stream.

The OGDCL needs to set up storage and other facilities at the field. “But, this won’t take much time as prefabricated plants could be installed at the site.”

OGCL is the country’s leading oil and gas exploration firm with its crude oil production standing at 40,952 barrels per day, gas production 1,010 mmcfd, liquefied petroleum gas output 819 metric tons per day and sulphur production 63 metric ton per day.