Polish PGNiG acquires 25% interest in gas exploration licence in Pakistan

Paweł Majewski, President of the PGNiG SA Management Board, said:

• We are consistently expanding the PGNiG Group's exploration and production operations abroad
• 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
• The transaction is a farm-in deal in which we acquired the interest under an agreement with the licence partners and with the consent of the Pakistani government

The Musakhel licence block, in which PGNiG has acquired a 25% interest, covers an area of 2,176 sq. km.
It is located in the northeastern part of Balochistan province, in an area rich in natural gas.

Based on the data from the deposits discovered in the vicinity of the licence area, PGNiG has provisionally estimated its recoverable reserves at approx. 16 bcm of gas.
Analysis of data that will be acquired will also be a starting point to design drilling operations.
The licence partners are:

• Pakistan Petroleum, which is the licence operator (37.2% interest)
• Oil&Gas Development Company (35.3% interest)
• PGNiG (25% interest)
• Government Holdings (2.5% interest)

At present, PGNiG’s exploration and production operations in Pakistan are concentrated in the Kirthar licence area (licence acquired in 2005).
The company has 2 producing fields there (Rehman and Rizq).
Since 2015, PGNiG has operated a gas production facility on the Rehman field – its 1^st gas production facility outside Poland.

In 2020, PGNiG’s gas production in Pakistan reached nearly 300 mcm, having increased by over 50% year on year, from approximately 190 mcm.