(PRESS RELEASE) WARSAW, 19-May-2021 — /EuropaWire/ — Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) announces that it has secured a new licence in Pakistan through the acquisition of a 25% interest in the Musakhel licence block in central Pakistan. The Company estimates the licence resources at 16 bcm 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 Paweł 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, in which PGNiG has acquired a 25% interest, covers an area of 2,176 square kilometres. It is located in the northeastern part of Pakistan’s Balochistan province, in an area rich in natural gas. Based on the data from the deposits discovered in the vicinity of the licence area, PGNiG has provisionally estimated its recoverable reserves at approx. 16 bcm of 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 mcm, having increased by over 50% year on year, from approximately 190 mcm. 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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SOURCE: PGNiG SA