Oil & Gas Development Company’s first quarter net profit leap by over 31 percent

Karachi: Oil & Gas Development Company OGDC saw its first-quarter of fiscal year 2011-12 net profit leap by more than 31% to Rs 21.9 billion as higher oil and gas prices offset production glitches.

OGDC said its output in the quarter ended 30 September was hit by torrential rains and flooding at its southern oilfields, as well as natural decline at some of its producing fields.

However, the company was still able to deliver oil production during the period of 36,092 barrels per day – about same level as last year – while gas output increased 7.8% year-on-year to 1,023 million cubic feet per day.

OGDC Chief executive Basharat Mirza said revenue increased by a “robust” 13.3% to Rs 44.686 billion and anticipates the company’s financial performance this year to be in line with its expectations.

OGDC holds a portfolio of 34 exploration licenses in the country with largest proportion of the country’s recoverable reserves, estimated at 214 million barrels of oil and 10,660 billion cubic feet of gas as of 30 September. Its total acreage covering more than 61,000 square kilometres – largest in Pakistan – also includes 22 operated blocks as well as interests in another seven blocks.

However, it was unable to kick off exploration work in 10 newly awarded blocks in Balochistan after it failed to gain security clearance, and has taken up the matter with Provincial and Federal authorities, the company stated.

Meanwhile, OGDC is looking to expand overseas and said it is considering an offer from Italian major Eni to farm into six exploration blocks off Gabon with 25% working interest. It is also preparing a report on Myanmar’s hydrocarbon potential.

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