OGDCL Boosts Oil Production from Well in Hyderabad District, Sindh
Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has efficaciously revived and enhanced the production of an oil well located in Hyderabad district, Sindh. This well is part of the Pasakhi Development & Production Lease (D&PL), where OGDCL holds a 100% working interest. OGDCL deployed a rig to install an artificial lift system (ESP), aimed at boosting production as part of its strategic optimization. Formerly, the well was producing 480 barrels of oil per day (bpd) through natural flow, after the installation of the ESP system, production has increased significantly to 900 bpd, reflecting an impressive increase of 420 bpd. The impressive increase of production emphasizes OGDCL's commitment to employing innovative technologies to maximize energy output, ensure a sustainable energy supply, and bolster Pakistan's energy resources.
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DP World and NLC Direct Shipping Route
Pakistan’s National Logistics Corporation (NLC) and Dubai-based multinational logistics firm DP World have magnificently shipped over 1,000 containers between Pakistan and Bangladesh since launching the first direct shipping route between the two countries in October 2024. The container service between Karachi and Jebel Ali is set to begin on January 13, 2025, with the first NLC vessel, capable of carrying 1,100 TEUs, scheduled to operate. A second vessel of similar capacity will be added by the end of January. Further expanding the scope of this collaboration, a vessel for edible oil is planned for February 2025. the commitment of both organizations to enhancing trade and connectivity across South Asia is start of a transformative phase in regional trade, with the alliance between NLC and DP World going beyond logistics.
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Pakistan's Rice Exports Surged
Pakistan's rice exports are experiencing momentous progress, driven by the rising demand for its high-quality and aromatic rice. Exports are expected to increase by 10% in the first half of the fiscal year 2024-25. Notably, in November 2024, Pakistan’s rice exports grew by 17% compared to November 2023. Non-Basmati rice exports rose to 781,882 tons from 665,851 tons, while Basmati rice exports surged to 370,000 tons, up from 244,664 tons in the same period last year. In the first five months of FY25, Pakistan exported rice worth $1.515 billion, marking a 35% increase compared to the same period in FY24. This surge in exports has been fueled by growing demand from Far Eastern countries, including Indonesia, Malaysia, Singapore, and the Philippines by offering competitive prices and superior quality, Pakistan has secured substantial orders from Indonesia, the Philippines, and Malaysia. Experts predict that the Philippines will become the largest rice importer in 2025.
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KUFPEC Selling Its Assets to PEL
Kuwait Foreign Petroleum Exploration Company (KUFPEC), a subsidiary of Kuwait Petroleum Corporation, has initiated its exit from Pakistan's oil and gas sector by worth approximately $60 million across several exploration blocks in the country. The assets, including those in the Dadu, Kirthar, Tajjal, Qadirpur, and Bhit concessions, are being acquired by Pakistan Exploration (Private) Limited (PEL). In November 2023, KUFPEC had signed Memorandums of Understanding (MoUs) with Oil and Gas Development Company Limited (OGDCL) and Mari Petroleum Company Limited (MPCL), signaling potential collaboration for knowledge exchange and strategic partnership expansion in Pakistan's oil and gas sector. However, despite these earlier commitments, KUFPEC’s decision to sell its assets has raised concerns among Pakistani policymakers, who may interpret the move as a sign of reduced foreign investment confidence in the country's energy sector. The sale of these valuable assets to PEL have implications for local operations, exploration, and the long-term sustainability of these resources.
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Export Processing Zone (EPZ) in Balochistan’s Chagai District
The government's approval of a new Export Processing Zone (EPZ) in Balochistan’s Chagai district marks a development for the region's economy. This private Export Processing Zone is designed to enhance the development and export potential of the region’s mineral resources, particularly copper, which is abundant in the area. The EPZ will be associated with the Siah Dik Copper Project, which is being managed by the Kohe Sultan Mining Company Limited. In terms of ownership, 80% of the equity will be held by China Metallurgical Group Corporation, with the remaining 20% owned by the local Siakoh Mineral Development Corporation. The EPZ will span an area of 4,208 acres, covering three mineral leases near Saindak. The collaboration is expected to drive both the extraction and export of valuable minerals, providing significant economic benefits, including job creation, infrastructure development, and improved trade prospects for the region.
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Kunnar West Well-3 in Sindh Commenced Production
The Kunnar West Well-3 in Sindh has successfully commenced production with a wellhead flowing pressure (WHFP) of 1,200 PSI, utilizing a choke size of 32/64”. The well is located in the Kunnar West Field, which is part of the Kunnar Mining Lease in Hyderabad District, Sindh Province. The field is operated by Oil and Gas Development Company Limited (OGDCL), with a 100% working interest. Currently, the production levels from Kunnar West Well-3 include 3.5 million standard cubic feet per day (mmscfd) of gas, 30 barrels per day (bpd) of condensate, and 3.8 metric tons per day of liquefied petroleum gas (LPG). The produced gas has been seamlessly integrated into the Sui Southern Gas Company Limited (SSGC) network, ensuring its contribution to the country’s energy supply.
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Discovered Hydrocarbons in the Kotri North Block, District Jamshoro, Sindh
Pakistan Petroleum Limited (PPL) and its joint venture partners, United Energy Pakistan Limited and Asia Resources Oil Limited, have discovered hydrocarbons in the Kotri North Block, District Jamshoro, Sindh. United Energy Pakistan Limited operates the well with a 50% working interest, while PPL holds a 40% working interest, and Asia Resources Oil Limited owns the remaining 10%. The discovery was made at the exploratory well Takri-1, where hydrocarbons are flowing at an impressive rate of approximately 2.4 million standard cubic feet per day (MMscfd). The Takri-1 well was drilled to a measured depth of 4,156 feet to evaluate the hydrocarbon potential of Late Cretaceous/Early Paleocene Sands. Modular Dynamic Testing (MDT) confirmed the presence of hydrocarbons in the interbedded sandstones of the Khadro Formation (Paleocene Age). Following this, the well was perforated and completed in the Khadro Formation, with hydrocarbons tested at a flowing wellhead pressure of 1,053 psig through a 20/64-inch choke.
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Tariff Concessions Under Pakistan-Azerbaijan Preferential Trade Agreement
The Federal Board of Revenue has introduced tariff concessions on various items under the Pakistan-Azerbaijan Preferential Trade Agreement. These concessions apply to a range of products, including shelled hazelnuts or filberts, apricots, vegetable saps and extracts, non-stemmed tobacco, polyethylene, propylene copolymers, casing, tubing, and drill pipes used in oil and gas drilling, as well as refined copper wire with a maximum cross-sectional dimension exceeding 6 mm. The imports of these goods will be governed by the Pakistan-Azerbaijan Preferential Trade Agreement Rules of Origin, 2024, as outlined in the Import Policy Order of Pakistan. The FBR has emphasized that these concessions are aimed at promoting bilateral trade between Pakistan and Azerbaijan, in alignment with the objectives of the preferential trade agreement signed between the two countries. The goods imported under this scheme must meet the conditions and requirements specified in the trade agreement to qualify for the reduced tariff rates.
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