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PGNiG acquires interest in gas exploration licence in Pakistan

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Oilfield Technology,

PGNiG has acquired a 25% interest in the Musakhel licence block in central Pakistan. The company estimates the licence resources at 16 billion m3 of natural gas.

‘We are consistently expanding the PGNiG Group's exploration and production operations abroad. The interest acquired in the Musakhel licence block may significantly increase PGNiG's production potential in Pakistan and strengthen our position on the local energy market,’ said Pawel Majewski, President of the PGNiG SA Management Board. ‘The transaction is a farm-in deal in which we acquired the interest under an agreement with the licence partners and with the consent of the Pakistani government.This confirms that PGNiG's competence in hydrocarbon exploration and production is highly appreciated and that we managed to forge good relations with the local partners while implementing other upstream projects in Pakistan.’

The Musakhel licence block covers an area of 2176 km2. It is located in the northeastern part of Pakistan's Balochistan province, in an area rich in natural gas. The company will obtain more information on the resource potential of the Musakhel block through seismic surveys scheduled to begin in 2022. Analysis of data that will be acquired will also be a starting point to design drilling operations.

In recent years, multiple energy infrastructure investment projects have been executed in the areas adjacent to the Musakhel block, which will facilitate the development of potential resources.

The licence partners are Pakistan Petroleum Ltd., with which PGNiG has worked for more than a decade and which is the licence operator (37.2% interest), Oil&Gas Development Company Ltd. (35.3% interest), PGNiG (25% interest), and Government Holdings Pvt. Ltd. (2.5% interest).

At present, PGNiG’s exploration and production operations in Pakistan are concentrated in the Kirthar licence area, Sindh province (licence acquired in 2005). The company has two producing fields there (Rehman and Rizq). Since 2015, PGNiG has operated a gas production facility on the Rehman field – its first gas production facility outside Poland. The interest holders in the Kirthar block are PGNiG (70%) and Pakistan Petroleum Ltd. (30%).

In 2020, PGNiG’s gas production in Pakistan reached nearly 300 million m3, having increased by over 50% year on year, from approximately 190 million m3. The company will continue exploration work on the Kirthar licence area and plans to drill and develop further production wells on the Rehman and Rizq fields.

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