The Oil and Gas Development Company Limited receivables mounted to PKR 93.238 billion including overdue amount of PKR 57.742 billion as of September 30th 2011 which is adversely affecting its operations.
The sources said that an official document of the company has underlined the need for an early resolution of this issue to ensure smooth running of exploration, drilling, development and production activities. It also stressed upon the need to timely discharge of statutory obligations including payment of royalty, taxes and dividends.
The exploration and prospecting expenditure of OGDCL declined to PKR 665.278 million during the last quarter which was PKR 2.531 billion in the same quarter last year.
OGDCL presently holds largest acreage in Pakistan, covering an area of 61,084 square kilometers operating 34 exploration blocks, 22 blocks including three offshore blocks with 100% interest and 12 blocks as operated JV. In addition, OGDCL also has interest in seven blocks operated by other companies.
An official said that OGDCL had aggressive exploration and production plans and the infamous circular debt and rise in the receivables is the biggest challenge facing the future growth of the company. We are managing the routine operations but initiating new projects require additional financing, which is actually burdening the company under the loans and the issues of returns are still unresolved.
About the company’s exploration and development activities, sources said that techno economic evaluation of offshore Indus-R and Eastern Offshore Indus-A is in progress.
In the Offshore Indus-G Block, an application has been submitted to the Directorate General of Petroleum Concessions for grant of 25% shares each to OGDCL, PPL, ENI and BPXA with the transfer of operator ship to ENI.
The seismic crew of the company during July/September acquired 376 L kms of 2-D seismic data in Mari East, Soghri and Mianwali blocks and 191 square kilometers of 3-D seismic data in Sinjhoro and Tando Allah Yar blocks.
OGDCL has taken up the matter with the government of Balochistan and the Ministry of Petroleum and Natural Resources for early resumption of exploration activities in these blocks, the sources said.
Overseas exploration evaluation is in progress to obtain exploration blocks. The technical report on six exploration blocks in Gabbon including two offshore and four onshore blocks with 25% working interest offered by ENI is being prepared. Also, a report on hydrocarbon potential of Myanmar has been prepared.
(Sourced from www.thenews.com.pk)
