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PGNiG pursuing to increase its footprint in the Pakistani upstream sector.

PGNiG, also known as Polish Oil and Gas Company (POGC) operates in Pakistan as a branch office of PGNiG Group, which has a majority shareholding of the Polish Government. PGNiG began its operations in Pakistan in May 1997 and has been conducting petroleum exploration and production activities as an Operator since then. Before acquiring the current Kirthar Concession (Block No. 2667-7), PGNiG operated and carried out exploration activities in four other Concessions namely Khanpur West, Sabzal, Mekhtar and Sabzal South. PGNiG has also held a 40% Working Interest in an exploration block in Nawabshah, Sindh as a Non-Operating Partner. PGNiG acquired the Kirthar Block, located in District Dadu (Sindh), as Operator in 2005 and Pakistan Petroleum Limited (PPL) farmed-in the Block as a Joint Venture Partner in 2006.

PGNiG made the discovery of Rehman-1 well in 2009 and started extended well test (EWT) production from it in 2013 hence, becoming the first "Tight Gas" producer in Pakistan. The appraisal phase for Rehman gas field was successfully concluded in August, 2015 whereby commerciality of the field was declared. The Government of Pakistan awarded a Development and Production Lease over Rehman field in 2017 for a period of 25 years.

In 2015, PGNiG made a second discovery by drilling Rizq-1 well in the Kirthar Block. This year also earmarks the commissioning of the Rehman Production Facility (RPF) which was constructed to process the produced gas from Rehman and Rizq fields. The facility was inaugurated by the then minister for petroleum and natural resources on November 17, 2015.

PGNiG more than doubled its production from the Kirthar Block when gas from Rizq field was added to the national grid in November 2016. In 2017, processing capacity of RPF was enhanced from 15 to 40 mmscfd to incorporate the anticipated production from Rizq field. Appraisal program of the Rizq field was completed in 2018 following the declaration of commerciality and grant of DandPL over Rizq field for a period of 25 years.

Until now, PGNiG has drilled 12 wells in Kirthar Block comprising 3 exploratory, 3 appraisal and 6 development wells. PGNiG has thus far invested ~US$280 million in Pakistan in exploration and production activities in all of its existing and previously held concessions. Out of this, ~US$235 million have been invested in Kirthar Block mainly on exploration, drilling of the wells, construction of Rehman Production Facility and its augmentation and ~50 km of sales gas transport pipeline. The current production from the Block stands at ~ 55-60 MMScfd which is planned to be increased in the first stage up to ~ 80 MMscfd with continued development of existing fields and other exploratory prospects in the Kirthar Block. The RPF was augmented in September 2019 to cater for the processing and dehydration requirements of the increased production.

PGNiG is actively pursuing development plans for the Rehman and Rizq fields in Kirthar Block and aims at increasing its footprint in the Pakistani upstream sector. PGNiG hopes that the investment climate in Pakistan to be more conducive for business and is committed to contribute to its energy security.

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Publication:Energy Update
Geographic Code:9PAKI
Date:Aug 31, 2020
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