The Togh-02 well is currently contributing 70 barrels of condensate and 8.0 Million Standard Cubic Feet per Day (MMSCFD) gas, into SNGPL’s network.
Islamabad: OGDCL Announces Commencement of Oil, Gas Production from Well Togh-2 in Kohat. Oil & Gas Development Company Limited (OGDCL), the operator of the Togh and Togh Bala Development and Production Lease (D&P.L), on Thursday announced the successful commencement of production from the Togh-02 well from Lumshiwal-I Formation. The well is situated in the Kohat district of Khyber Pakhtunkhwa.
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The Togh-02 well is currently contributing 70 barrels of condensate and 8.0 Million Standard Cubic Feet per Day (MMSCFD) gas, into SNGPL’s network. OGDCL remains steadfast on its core objective of adding to shareholder value through growth oriented business strategy. Production from the well is projected to provide crucial annual foreign exchange savings in excess of $38 million per annum, reinforcing import substitution and strengthening Pakistan’s economy.
Pakistan’s government is expected to ask friendly nations to invest in the country’s largest hydrocarbon explorer – Oil and Gas Development Company Limited (OGDCL) – in order to fetch a better price for the company.
Background discussions with officials privy to the development revealed that Pakistan could offer shares of the state-owned company to friendly countries like Saudi Arabia, the United Arab Emirates (UAE) and Qatar, which may offer attractive prices. Earlier, the strategy to divest the shareholding in OGDCL on the stock market had led to a sharp fall in share prices of the company.
Stockbrokers allegedly manipulated the OGDCL shares prices that fell to Rs117 per share from Rs216 when the Pakistan Muslim League-Nawaz (PML-N) government floated the company’s stocks in 2014. On November 8, 2014, the government scrapped the OGDCL’s transaction after international and domestic institutional investors subscribed to only half of the shares offered to them.
The government floated 311 million shares at a minimum price of Rs216 per share, but it received offers for only 162 million shares, or 52% of the total offer, at the conclusion of a three-day bidding process.
In February 2020, the Petroleum Division asked the Cabinet Committee on Privatisation (CCOP) to stop the OGDCL divestment process because of a steep fall in the company’s share price. The stock recovered slightly to Rs123.76, which was still 42% below the 2014 level of Rs216, when the PML-N government attempted to sell a stake in the company.
The CCOP had decided in August 2019 to divest up to 7% government shares in the company.
