Karachi: The government is expected to revise the wellhead gas price of the Qadirpur Gas Field from USD 2.56 to USD 3.2 /MMBTU for Kuwait Foreign Petroleum Exploration Company (KUFPEC).
According to Alfalah Securities Limited, the revision was being done after 10 years, adding that the increase was subject to the approval of the Economic Co-ordination Committee (ECC) of the cabinet. Moreover, the Petroleum Ministry has informed the company’s management that the increase in the wellhead gas price would be effective from January 2012.
Qadirpur Gas Field is a joint venture between OGDC, Kuwait Foreign Petroleum Exploration Company Pakistan B.V. (KUFPEC), PKP Exploration Limited (PKPEL, a subsidiary of Premier Oil Plc) and Pakistan Petroleum Limited (PPL). OGDC is operating the field with 75% share while PPL holds 7% working interest in this field. It is located in Sindh and ranks as the second largest gas field in Pakistan after Sui, with original recoverable reserves of about 4.0 Tcf. Gas from the field is supplied to SNGP and Engro Power Ltd. since March 2010 while raw gas and condensate is sold to Liberty Power. The average daily production for 9MFY12 stood at 538mmcf of gas and 825 bbl of oil. Alfalah Securities Limited believes that this price increase may also be applicable to other partners of the field in that case OGDC will have an incremental EPS of ~PkR 0.79 from the wellhead price increase.