Pakistan’s OGDCL gets PKR 7.7B as circular debt payment

The Oil & Gas Development Company Limited, Pakistan’s largest gas explorer, has received the third installment of its long-standing dues as part of the circular debt.

The monthly installment of PKR 7.72 billion is paid as an interest payment from Power Holding (Private) Limited (PHL) as per the mechanism approved by the government .

The company has so far received PKR 23.17 billion from the government, which recently signed a new deal with banks to restructure outstanding payments in the country’s gas and electricity sector.

The company will receive the total interest amount of PKR 92 billion in twelve equal monthly installments, commencing from July.

New discovery

The OGDCL has also announced the discovery of gas/condensate at Bitrism East-1 well in the southern province of Sindh.

OGDCL is the operator of the Bitrism Exploration License, holding a 95% working interest, in joint venture with Government Holdings (Private) Limited, which has a 5% working interest.

The well was spudded on June 30 and drilled down to a depth of 3,800 meters, the company said in a stock filing.

In the two Drill Stem Tests (DSTs) carried out by the company, the well produced “significant quantities of hydrocarbons” with a combined production potential of 22.5 MMSCFD gas and 690 barrels of condensate per day at 32/64” choke, the company added.

This discovery will “contribute to reducing the gap between energy supply and demand through indigenous resources”.