PGNiG produced nearly 300mcm of gas in Pakistan in 2020. Credit: drpepperscott230 from Pixabay.

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.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Majewski 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.