PGNiG Inks MoU with Pakistan Producer
Poland's state-run gas and oil producer PGNiG has signed a memorandum of understanding to forge a strategic partnership with the second largest gas producer in Pakistan, PGNiG said March 19.
The MoU provides for the parties’ cooperation in the upstream segment within and outside of Pakistan. It also envisages analysis of potential joint ventures in exploration and production, including appraisal and development of Pakistani shale gas potential.
PGNiG produces natural gas from two fields in Pakistan: Rehman and Rizq. The latter was discovered in 2015 by the Rizq-1 well brought onstream in November 2016, followed by Rizq-2 which came onstream February 2018. But that will still only take PGNiG’s overall operated Pakistani production to 1m m3/d of gas (some 0.85mn m3/d high-methane equivalent).
PGNiG holds a 70% interest in the Kirthar licence with the other 30% held by Pakistan Petroleum. PGNiG’s net share of annual production from the Rehman and Rizq fields, carried out through five wells in 2017, amounted to 150m m3/yr measured as high-methane equivalent.
PGNiG CEO Piotr Wozniak said of the new MoU: “This marks another step towards expanding our operations in Pakistan, where we aim to ramp up natural gas production. Our collaborative partnership with Mari Petroleum Company Limited will raise our visibility in the local market, helping us gain access to attractive projects. We have already established business relations with Pakistan Petroleum Limited. A partnership with another Pakistani company will strengthen our presence in that country.”
Mari is one of the major petroleum exploration and production companies in Pakistan and the country’s second largest gas producer, with a 17% market share. The company operates Mari, Pakistan’s largest gas field located in the Sindh province in the south-eastern part of the country. The province is also home to PGNiG’s Kirthar production licence area.
Eni and Hungary's MOL also operate gas production in Pakistan, whereas Austria's OMV last month sold its upstream assets there Dragon Prime Hong Kong for €157mn ($192mn).