Islamabad: Oil and Gas Development Company Limited (OGDCL) has demonstrated resilience in its operational and financial performance for the first quarter ended September 30, 2024, despite facing significant challenges such as forced production curtailments and a downturn in international crude oil prices.
According to information available from the Pakistan Stock Exchange (PSX), OGDCL has managed to uphold a stable performance through strategic production optimization. The company reported a daily production increase, achieving 564 barrels of crude oil, 10 million cubic feet (MMcf) of gas, and 16 tons of LPG. This production represents substantial contributions of approximately 47%, 28%, and 37% to the country's total oil, natural gas, and LPG production, respectively. The financial metrics were impacted by an unfavorable exchange rate variance and a lower crude oil basket price, averaging PKR79.28 per barrel compared to PKR84.32 in the same period last year.
Exploration efforts have been vigorous, with OGDCL holding the largest exploration acreage in Pakistan, totaling 99,268 square kilometers, which accounts for 39% of the country's total exploration area. The company acquired 131 square kilometers of 3D seismic data and reprocessed 488 line kilometers of 2D seismic data during the quarter. However, certain seismic activities were hindered by security issues and operational challenges in the Suleiman and Killa Saifullah blocks.
OGDCL's drilling activities also saw substantial progress with a total of 10,678 meters drilled. Notably, the company made two new gas condensate discoveries—Chak 202-1 in Rahim Yar Khan and Baloch-2 in Sanghar—anticipated to significantly boost daily crude oil and gas production.
On the development front, OGDCL is pushing ahead with projects aiming to increase its daily production of oil, gas, LPG, and sulphur. The company is also employing advanced technologies and innovative production techniques to counteract natural declines in mature fields. This strategy has led to noteworthy outputs, including the commissioning of early production facilities at the Bettani field, which is now operational.
In terms of financial results, OGDCL faced a decrease in sales revenue to Rs. 106.01 billion due to reduced average prices for crude oil and gas, compounded by macroeconomic factors and geopolitical tensions affecting global markets. Nonetheless, the increase in the average realized price of LPG provided some relief to overall business revenues.
In response to these performances and maintaining a commitment to shareholder value, OGDCL's Board of Directors declared a first interim cash dividend of Rs. 3.00 per share. The company continues to navigate through industry challenges with strategic initiatives and robust management practices aimed at sustaining and enhancing its market leadership in the energy sector.