OGDCL signs MoU with major Chinese company

Gwadar Pro

Islamabad: Pakistan’s Oil & Gas Development Company (OGDCL) have signed a Memorandum of Understanding (MOU) with CCDC, the major player in drilling and upstream Oil field Services of China, for the development of shale and tight gas potential of Pakistan and address the country’s energy needs through indigenous solutions.

The MOU was signed by OGDCL’s Executive Director (Production), Mumtaz Ali Soomro, and CCDC’s Vice President, Zhang Zhidong, during the 8th Silk Road International Exposition and Investment and Trade Forum for Cooperation Between East and West China in Xi’an city of Shaanxi province of China, according to a press statement.

The government of China has specially invited Pakistan to attend the event as the Country of Honor. The signing ceremony was attended by the Federal Minister for Energy (Petroleum Division), Dr Musadik Malik, and the Ambassador of Pakistan to China, Khalil Hashmi.

The Minister expressed gratitude to the Chinese side for hosting Pakistan as the Country of Honor at the event. He said that this cooperation would strengthen ties in the energy sector for the mutual benefit of both nations.

The cooperation on shale gas and tight gas between OGDCL and CCDC will open up a new chapter of untapped energy potential that our country possesses.

Earlier on August 12, the Oil and Gas Development Company Limited (OGDCL) had announced to commence production from Pakistan’s first tight gas project in the Sujawal district of Sindh.

The OGDCL spokesperson said that the Northwest Well-1 in Sujawal is producing 1.5 million cubic feet of gas per day. The company said that 1.5 million cubic feet of gas is being injected into the Sui Southern Network.

“The OGDCL is committed to increasing the country’s energy resources,” the statement read. Meanwhile, the OGDCL also shared the development in a notice to the Pakistan Stock Exchange (PSX).

“OGDCL is pleased to report the commencement of early commercial production of tight gas from Nur West Well-1. OGDCL holds 100% working interest in Nur Development & Production Lease (D&PL), located in district Sujawal, Sindh,” the notice read.