PGNiG takes stake in Pakistani gas block
PGNiG on May 19 said it had acquired a 25% interest in the Musakhel block in central Pakistan. The company estimates the licence resources at 16bn m3 of natural gas.
“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 management board.
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The Musakhel block covers an area of 2,176 km2 and is located in the northeastern part of Pakistan's Balochistan province. PGNiG provisionally estimated its recoverable reserves at about 16bn m3 of gas. The company will obtain more information on the resource potential of the block through seismic surveys scheduled to begin in 2022, it said.
Once the deal is complete, Pakistan Petroleum will hold a 35.3% interest in the block, Oil & Gas Development Co will have 35.3% , PGNiG will have 25%, and Government Holdings the remaining 2.5%.
At present, PGNiG’s exploration and production operations in Pakistan are concentrated in the Kirthar licence area in Sindh province. 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 firm has a 70% stake in Kirthar while its partner Pakistan Petroleum has 30%.
PGNiG’s gas production in Pakistan reached nearly 300mn m3 in 2020, up 50% year/year, it said. 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, it added.