Oil and Gas Development Company Limited
Directors Report: March 31, 2023
Discovery: OGDCL's exploratory efforts to locate new reserves during the period under review yielded 3 oil and gas discoveries having an expected cumulative daily production potential of 3,007 barrels of oil and 2.7 MMcf of gas.
Production: OGDCL's production during the period under review contributed around 46%, 29% and 36% towards Country's total oil, natural gas and LPG production respectively (source: PPIS).
Production: The average daily net saleable crude oil, gas and LPG production clocked in at 33,034 barrels, 765 MMcf and 732 tons in comparison to 36,173 barrels, 828 MMcf and 822 Tons in the comparative period respectively.
Revenue: Higher sales are primarily attributable to an increase in the realized price of crude oil averaging US$ 75.01/barrel (9M 2021-22: US$ 68.84/barrel).
Other Income: In addition to the above, higher interest income on investment and bank deposits and exchange gain coupled with share of profit in associates contributed towards improved profitability.
Dividend: The Board has announced third interim cash dividend of Rs 1.80 per share (18%) for the year ending 30 June 2023. This is in addition to the first interim cash dividend of Rs 1.75 per share (17.50%) and second interim cash dividend of Rs 2.25 per share (22.50%) totaling Rs 4.00 per share (40.00%) already declared and paid during the fiscal year.
Investment: The Company has invested in the project company, i.e. Reko Diq Mining Company (Private) Limited (RDML) through Pakistan Minerals (Private) Limited (PMPL), an entity incorporated in Pakistan in accordance with the agreements for collective representation of the Company, PPL and GHPL. RDML is engaged in the mineral exploration activities in Pakistan. The Company's equity interest in PMPL is 33.33% with an effective interest of 8.33% in RDML. Project feasibility is in progress. The operator i.e. M/s Barrick Gold Corporation has mobilized its professionals.