Poland’s Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) has acquired a stake of 25% in the gas exploration licence, Musakhel, located in central Pakistan.
Covering an area of 2,176km², the Musakhel licence block is located in the north-eastern part of natural gas rich Balochistan province.
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The acquisition is part of the Polish state oil and gas producer’s efforts to consistently expand its exploration and production operations abroad.
PGNiG estimates the Musakhel block to hold recoverable reserves of around 16 billion cubic metres of gas resources.
The firm plans to undertake seismic surveys in 2022 to obtain more information on the Musakhel block’s resource potential.
PGNiG management board president Paweł Majewski said that the stake acquisition in the Musakhel licence block could significantly increase the firm’s production potential in Pakistan.
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By GlobalDataMajewski added: “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.
“This confirms that PGNiG’s competence in hydrocarbon exploration and production is highly appreciated and that we managed to forge good relations with the local partners while implementing other upstream projects in Pakistan.”
The other licence partners in the Musakhel licence block include Pakistan Petroleum (37.2%), Oil&Gas Development Company (35.3%), and Government Holdings (2.5%).
PGNiG expects the energy infrastructure investment projects executed in recent years in the areas adjacent to the Musakhel block to facilitate the development of potential resources.
Last year, PGNiG reported nearly 300 million cubic metres (mcm) of gas production in Pakistan. This represents a growth of more than 50% from previous year production of approximately 190mcm.
