Web Desk: Pakistan has started commercial production of oil and natural gas from a newly developed well in the southern Sindh province, increasing domestic hydrocarbon output as the country seeks to reduce its reliance on costly energy imports.
Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production company, informed the Pakistan Stock Exchange of the development, confirming that production has commenced from the new discovery in Sanghar district.
According to OGDCL, the well is producing around 10 million standard cubic feet of natural gas per day along with approximately 600 barrels of crude oil daily.
The company holds a 62.5% working interest in the project, while Government Holdings (Private) Limited (GHPL) owns 22.5% and Orient Petroleum Limited (OPL) holds the remaining 15%.
The latest production adds to Pakistan’s domestic energy resources at a time when the country is striving to strengthen local oil and gas supplies.
The announcement follows another recent development in Sanghar, where production from the Bobi Deep-1 well began with an output of around 2,000 barrels of crude oil per day.
Together, the two projects are expected to enhance Pakistan’s indigenous oil and gas reserves and contribute to higher domestic production.
Energy experts say increased local production could help narrow the gap between Pakistan’s energy demand and domestic supply, reducing the country’s dependence on imported fuels.
Higher indigenous output is also expected to ease pressure on foreign exchange reserves by lowering the import bill for crude oil and liquefied natural gas, providing some relief to the country’s external account.
Pakistan continues to encourage exploration and development activities as it seeks to improve energy security and limit exposure to volatile global fuel prices.
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