Karachi, Oil & Gas Development Company Limited (OGDCL) held two consequential meetings of its Board of Directors on August 10, 2023, and August 17, 2023, to deliberate and decide on critical matters affecting the company's operations and strategic direction. The board wishes to share the outcomes of these meetings, providing stakeholders and the public with important updates.
Circular Debt Settlement:
In recent times, various news reports have been circulating regarding the settlement of circular debt. OGDCL aims to clarify that, as of the present date, no formal communication has been received from relevant authorities regarding any settlement plan. Consequently, any information circulating in the media about potential settlement plans should be considered speculative. The company urges stakeholders and the public to rely solely on official communications from OGDCL for accurate information.
KPD-TAY Compression Project:
A significant announcement was made concerning the KPD-TAY compression project. The Board of Directors has granted approval for the hiring of the Engineering, Procurement, Construction, and Commissioning (EPCC) Contractor for this project. The KPD-TAY compression project, a vital component of OGDCL's operational enhancements, aims to boost efficiency and capacity. The project's estimated completion timeline spans 16 months, commencing from the establishment date of Foreign Supply, Letter of Credit (LC), culminating with the successful performance testing of all Compressor Packages.
Indigenization Initiatives:
OGDCL underscored its strong commitment to promoting indigenization efforts. This strategic initiative is designed to foster self-reliance and contribute to the nation's economic growth by leveraging local resources and technologies. The company's goals with the indigenization drive encompass several pivotal objectives:
Minimizing imports to conserve foreign reserves and bolster the trade balance, supporting local industries.
Ensuring continuous material supply through alternative supply chains for seamless operations.
Enhancing domestic market competitiveness, offering quality products at competitive prices and opening doors for global exports.
Contributing to economic growth by driving production, employment, and local investments.
Supporting knowledge and skill development, nurturing a skilled workforce and enhancing the nation's human capital.
Aligning with government policies that emphasize domestic production and investment.
The Board of Directors conveyed gratitude to shareholders, the Ministry of Energy, the Federal Government, employees, partners, and the wider public for their continued trust and support. The Board reiterates its unwavering commitment to transparency and pledges to provide timely updates regarding the Company's initiatives and decisions in the interest of all stakeholders.