MOL completes work on $225m gas processing plant

So far, six discoveries have been made in the block, the first in 2002 and the most recent in 2011. PHOTO: FILE

ISLAMABAD: MOL Pakistan has announced that its joint venture in Tal block has completed work on Makori gas processing plant at a cost of $225 million, which will immediately start producing 300 tons of liquefied petroleum gas (LPG) per day.

“This new addition will take MOL’s production in the country to 300 million cubic feet (mmcf) of gas per day, 21,000 barrels of oil and condensate per day and 300 tons of LPG,” Alexander Dodds, Executive Vice President of MOL Group, said in a meeting with Prime Minister Nawaz Sharif here on Wednesday.

Dodds was leading a high-level delegation of the group in the meeting. Federal Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister of State Jam Kamal Khan and MOL Oil and Gas Company Political Adviser Ali Murtaza Abbas were present.

Appreciating the investor-friendly petroleum policy of Pakistan, Dodds suggested that the government should look at other avenues in the petroleum sector including shale gas exploration.

The completion of Makori plant will make MOL the second largest producer of oil/condensate and LPG and fourth largest producer of gas in the country. Tal joint venture has so far invested around $1.4 billion in Khyber-Pakhtunkhwa.

Petroleum Minister Shahid Khaqan Abbasi said MOL worked with both federal and provincial governments and the local community in an exceptionally professional manner. He asked the prime minister to inaugurate the gas processing facility soon.

Federal Petroleum Secretary Abid Saeed asked MOL to step up exploration activities and enhance investment and welcomed the increase in the company’s rig operations, which rose from two rigs to four.

Tal block has been jointly explored and developed by MOL, Pakistan Petroleum Limited, Oil and Gas Development Company, Government Holdings Private Limited and Pakistan Oilfields Limited.

So far, six discoveries have been made in the block, the first in 2002 and the most recent in 2011.

Commercial production has started from five of the discoveries – Manzalai in 2005, Makori in 2006, Mamikhel in 2010, Maramzai in 2011 and Makori East in 2012. Tolanj discovery is under appraisal.

The increase in production has coincided with the completion of MOL’s 15th year in Pakistan. With the completion of the new plant, the company’s daily production has increased by 30 mmcf of gas, 7,500 barrels of crude oil/condensate and 300 tons of LPG.