Oil and Gas Development Company Limited (OGDC) Earnings Call Transcript & Summary

Welcome to the OGDCL Full Year FY 2025 Financial Results July 2024 until June 2025. My name is Allen, and I will be your coordinator for today's event. Please note, this call is being recorded. [Operator Instructions] I will now hand over to your host, Ahmed Hayat Lak, CEO, to begin today's conference. Thank you.

Thank you very much. Ladies and gentlemen, I welcome you all to OGDCL's Full Year 2024-2025 Financial Results Announcement Conference Call. I hope our Investor Relations team has already sent you the presentation on the full year results. Let us start on Page 2 of the presentation, where I'll ask you to go over the legal disclaimer first. I will take a short pause while you read the legal disclaimer. Ladies and gentlemen, I'm pleased to report OGDCL's operational and financial performance during the financial year '24-'25. OGDCL being the largest upstream player in Pakistan enjoys the largest share of exploration acreage in the country, which stands at 40% of the total awarded acreage. As of June 30, 2025, OGDCL held 49% of country's recoverable oil reserves and 31% of country's recoverable gas reserves. In terms of production, currently, OGDCL delivered 49% of Pakistan's oil output, 28% of its gas output and 34% of its LPG output. Our remaining 2P recoverable reserves estimates as at June 30, 2025, stood at an impressive 756.20 million barrels of oil equivalent. During the fiscal year from July '24 to June '25, OGDCL reported average daily net crude oil, gas and LPG production of 30,919 barrels, 652 million scfs and 442 sic [ 642 ] tonnes, respectively. OGDCL has a portfolio of 113 development and production leases, out of which 79 development production leases are 100% owned and operated, while 34 are nonoperated where we act as nonoperators, having joint venture agreements with foreign as well as local E&P companies. OGDCL operations are spread out all over Pakistan. The company made 5 new oil and gas condensate discoveries during the year. Moving on to Slide 4, you can see a map which clearly shows OGDCL's dominant position in all the prospective areas of Pakistan. OGDCL holds a diverse portfolio of exploration assets currently constituting 54 owned and operated joint venture exploration licenses, along with holding working interest in 14 blocks operated by other exploration and production companies. These exploratory licenses are spread across all 4 provinces of the country and representing the largest exploration acreage held by any E&P company in Pakistan. To carry on with the presentation, I will now ask Mr. Anas Farook, Chief Financial Officer; and other heads of the department to take you through the next few slides.

Thank you very much, Ahmed Hayat Lak. Ladies and gentlemen, this is Muhammad Anas Farook, I'm the CFO of OGDCL. I'll request you to turn to Slide 5. OGDCL, during the year, 30th June 2025, registered a sales revenue of PKR 401 billion as compared to PKR 463 billion in the previous year. The company's sale declined primarily due to forced curtailment amounting to PKR 43 billion accompanied with lower crude oil realized prices of $60 per barrel as compared to $68 per barrel last year. Likewise, company's sales were also affected by the depreciation of Pak rupees against dollar, which stood at PKR 279.7 per U.S. dollar as compared to PKR 283.48 last year. Increase in realized prices of LPG and gas of PKR 169,502 per tonne as compared to last year of PKR 161,224 per tonne and PKR 730.38 per million scf as compared to last year PKR 712.88 million scf, respectively, lent partial relief to the business revenue. During the year, 30th June 2025, the operating profit margin and the net profit margin were -- margins were 46% and 42%, respectively, with an EPS of PKR 39.50. In addition, the Board of Directors of the company recommended a final cash dividend of PKR 5 per share, which takes the full year dividend to PKR 15.05 per share. It is pertinent to note that this is the highest dividend paid by OGDCL in its history. I'll now hand over the presentation to Mr. Dr. Khalid Amin, who is our Head of Exploration, who will continue with the presentation.

Okay. Thank you. Hello, everyone. This is Dr. Khalid Amin, and I am the Head of Exploration Directorate. Let's move on to Slide #6. OGDCL being the national flagship of Pakistan E&P sector holds the largest exploration acreage, which as on 30th of June 2025, stood at 99,287 square kilometers, respectively, representing 40% of country's total area under exploration. The company's exploration portfolio currently comprises 54 owned and operated joint venture exploration licenses. Additionally, the company possesses working interest in 14 exploration blocks operated by other E&P companies. In line with its exploration-led growth strategy to liquidate oil and gas reserves, OGDCL during the year acquired 750 line kilometers of 2D and 1,051 square kilometers of 3D seismic data in comparison to 1,312 linear kilometers of 2D and 1,051 square kilometers of 3D seismic data during the year targets. The acquired seismic data represents 34% and 74% of total 2D and 3D seismic data acquired in the country, respectively. Moreover, the company using in-house resources processed and reprocessed 2,431 linear kilometers of 2D seismic data and 2,806 square kilometers of 3D seismic data exploration. Furthermore, 1,500 meters of geological section in [ Naserpur ], Nizampur and Kala Chitta area with spot checking in key localities for validation and refinement was carried out in Nowshera block and 40 linear kilometers of geological field work was carried out in Killa Saifullah and Sharan block. On the drilling front, OGDCL studied 15 wells, including 9 exploratory, 5 development and 1 reentry well. Exploratory wells are Baragzai X-1 in Nashpa EL, Faakir-1 in Bitrism EL, Chak-202-2 in Mari East EL and Chakar-1 and [indiscernible] in Tando Allah Yar EL, [indiscernible], [ Chakro North-1 in Chakro DNPL ] and Bitrism East-1 in Bitrism EL and Chak-2631-1. Development wells are Qadirpur-64 horizontal in Qadirpur DNPL, Pasakhi-13 horizontal and Pasakhi-14 in Pasakhi and Pasakhi North DNPL and Chak-2-2 sidetrack in Chak-2 DNPL and [indiscernible] and 1 reentry well in Dhamach-1. OGDCL's exploration effort to locate new reserves during the year under review yielded 5 new following oil and gas as well as gas condensate discoveries: Chak-202-1 in Sui Main Limestone in district Rahim Yar Khan, Punjab province; Baloch-2 Sembar formation in district Sanghar, Sindh province; Bettani-02 Samana Suk formation in district Laki Marwat, KPK province; Soghri North 1 in Soghri EL, comprising of Chorgali, Sakessar formations, the gas condensate in district Attock, Punjab province; and Faakir-1 in Bitrism EL, massive sand and Basal sands in [indiscernible] formation with gas condensate in district Khairpur, Sindh province, having an expected cumulative daily production potential of 947 barrels of oil and condensate per day and 35 million scfs of gases. Now Mr. Ahsan Shaikh, Head of Production Directorate, will take you in the next couple of slides.

Thank you, Khalid sir. Hello, everyone. This is Ahsan Shaikh, and I am the Head of Production Directorate. Let's move on the Slide #7. OGDCL production strategy focuses on maintaining and enhancing announcing hydrocarbons by rapidly integrating new exploratory appraisal and development values into the network. To meet Pakistan's growing oil and gas demand, the company is utilizing cutting-edge production optimization techniques and accelerating ongoing development projects. This approach ensures steady increase in production, leveraging new discoveries and advancement in technology. OGDCL's average daily net oil and gas production clocked at 30,919 barrels and 652 MMscf gas, respectively. Moreover, company's average daily net LPG production clocked into 642 metric tonnes. The company faced significant operational challenges stemming from severe production curtailment caused by constraint in SNGPL system, Sui Northern Gas Pipeline system. This sums up to 653,350 barrels oil, 33,215 MMscf gas and 26,280 metric tonne LPG from OGDCL owned operated and nonoperated fields translating into average [ 170,090 ] barrels of oil per day and 91 MMscf gas per day and 72 metric tonne LPG per day. The [ discussion substance ] to be impacted several major fields, including Nashpa, Qadirpur, [indiscernible] Bettani besides marginally at Chanda and Mela field. The SNGPL system constraint limited the capacity of offtake produced [indiscernible] resulting in operational inefficiency and reduced output. These bottlenecks not only affected the company's overall production target, but also posed a risk to maintaining the desired level of profitability and operational capacity. Further, these interruptions also lowered the ultimate recovery factor of reservoir by disturbing design production, leading to a potential loss of applicable results. OGDCL successfully brought into production 4 expected wells that is Nur West-1, Baloch-2, [indiscernible], Chak-212-1 and 1 appraisal well Bettani-2 and 3 development wells Uch-35, Uch-36 and Chak-202, thereby added 90,257 barrels of oil and 6,552 MMscf of gas. Additionally, 2,769 metric tonne LPG was also recovered in order to arrest natural decline and sustained production from mature wells. 90 workover jobs were carried out comprising 19 workover with rig and 17 workover -- rigless workover, which resulted into increment of 2,977 barrels of oil per day, 24 MMscf of gas per day and 70 metric tonne LPG per day. As part of preventive maintenance plan, OGDCL successfully completed the annual turnaround 88 of its plants at Nashpa, Sinjhoro, KPD-TAY, Dakhni, Qadirpur, Uch-I and Uch-II and also at Chanda during the period under discussion. During ATA's pressure survey jobs were completed at various wells of Sinjhoro, Qadirpur, KPD-TAY and Uch-I field to induce improvement in [indiscernible] parameters. Going to Slide #8, where latest status of various government projects is given. Jhal Magsi development project. After successful installation of Jhal Magsi plant and laying of 98 kilometer gas transportation pipeline by SSGCL plant commissioning completed and on-spec delivery of sale gas has been started to SAGCL from 16 August '25. Dakhni Compression project. Contract effectively started after opening of foreign supply and services LCs in December 2024. EPCC contractor has completed substantial site works after compressor placement and foundation, interconnection of piping and associated [ E&I ] work is in progress. UCH Compression project. Contract effectively started after opening of foreign supply and services LC in December '24. EPCC contractor has completed substantial site work. Turbo compressor are in transit from U.S.A., whereas other majority equipment has already reached at site. KPD-TAY Compression project. Contract effectively started after opening of foreign supply and service LC in December '24. EPCC contractor has mobilized at site, established its [indiscernible] and started sale works. I now ask Mr. Muhammad Anas Farook, our CFO, to continue with this.

Thank you very much, Ahsan Shaikh sir. So ladies and gents, moving to Slide #9. It shows a graphical illustration of our financial performance. You would see that our sales revenue has declined. I've already given you the reason it is primarily due to forced curtailment, which we were required to bear because of the SNGPL line pressure and due to reduced power demand. There were other factors also, but relatively less affecting our production, which was realized price of crude, which went down from $68.67 in the last financial year to $60.83 in the current financial year. Sales were also affected very slightly by the appreciation of Pak rupee against dollar, which stood at USD 279.72 in the current year. Our operating expenses declined by 3% on account of the lower wellhead price -- 15% lower wellhead price, which we had to pay because of our reduced production and some other expenses, which related to our -- which related to our non-operated JVs, which did not come through. Exploration and prospecting expenditure increased by approximately 49%. This is a direct result of our increase in the dry and abandoned wells, which amounted to approximately PKR 4 billion. We also had an increase in our cost to our in-house seismic parties, which was approximately PKR 2.4 billion, which accounts for the increase in the overall exploration and prospecting expenditure. Finance and other income has increased by 98% as compared to last year. As you would remember, last year, we had realized a loss of PKR 23 billion on the TFCs due to interest on TFCs, which is now being realized every month. The unwinding of that loss in the current -- in this current accounting year resulted in an increase in profitability of PKR 14.5 billion. Further, the exchange gain in the current year was lower as compared to last year. In the current year, it was approximately PKR 5.6 billion, whereas in the last year, we had an exchange loss of PKR 8.4 billion. Net profit after tax decreased by 19%. This is a direct result of the reduced revenues and approximately PKR 28 billion, which was -- which resulted in a reduced tax pursuant to a Supreme Court decision last year on account of depletion allowance and PKR 9.5 billion was also paid out to tax authorities in this year additionally on account of bonus shares, which we received from Mari Energy Limited. I would like to turn -- I would like you to turn over to Slide #10, which shows the key financial indicators. This will give you a brief idea as to what our performance has been for the year. Now -- to take the presentation to a conclusion, I would like to hand over back to our MD, CEO for his comments. Thank you.

Thanks, [ Farook ]. OGDCL's management remains firmly focused on sustaining steady growth in the company's production volumes. We are equally committed to accelerating the timely development of projects currently in the pipeline. Our strategy for expanding production and reserves is rooted in the adoption of international best practices across all operations. With that, ladies and gentlemen, we conclude today's presentation. Thank you for your participation in this conference call. We will now hand it over to the operator to begin the Q&A session, which we anticipate will last no longer than 15 to 20 minutes. Thank you very much.

[Operator Instructions] We will take our first question from Muhammad Iqbal, AWT Investment.

Yes. This is Muhammad Iqbal. Sir, I have a question regarding the power circular debt. So is there an amount which you guys are expecting to receive from the clearance of power circular debt? Also, my question also pertains to gas circular debt as well that when are things going to move in that direction? Other than this, I would like to also ask you about any update on the Abu Dhabi block since the exploration activity has ended. And as far as we know, assessment is ongoing. And lastly, sir, my question is regarding reserves exploration as the U.S. has expressed interest in exploring reserves over here. So are you -- or is your company in talks with any U.S.-based company for reserves exploration?

Okay. This is Anas Farook. Let me just try and answer your questions one by one. So on power sector circular debt, which is expected to be settled very soon, we are expecting cash flows in as per the terms of that settlement from Uch Power. Once we have that clarity as to how much we will be getting, we will share it with the wider audience on that particular front. Your second question as to petroleum circular debt, there is a very high-powered committee, which is currently working on the petroleum circular debt. And there's a seriousness about this particular resolution of the petroleum circular debt in this context. And hopefully, we'll hear some good news soon enough. Third question was regarding PIUL. Your comment on the fact that the exploration program has ended actually is not fully true. It's partially correct that we have ended one phase of the exploration program, where we have announced discoveries and we have signed a PCA. And the production of that is expected in somewhere around in 2028, '29, financial year. And the exploration program, meanwhile, continues on the front as per the commitments with ADNOC in Abu Dhabi. As for the reserves and the comments on the U.S. that the U.S. companies are looking at exploiting the reserves in Pakistan, we currently are engaged with the relevant people. There is no specific company which has been identified as such, but we are working with the relevant people to explore possibilities on both on onshore and offshore blocks, which are under consideration as of now.

We will take our next question from [indiscernible] Capital.

Sir, first of all, congratulations on an outstanding set of results, hats off to the management. My first question pertains to the payout plans. In the federal government -- federal budget documents, the government has projected around PKR 95 billion in dividends from OGDC. And based on government's shareholding of 85%, this comes out to be at PKR 111 billion, translating into a DPS of nearly [ PKR 26. ] So my question is, should this be seen as a realistic expectations backed by fundamentals or more of a budgetary assumption? More importantly, are these numbers indicative of what investors should reasonably expect from OGDC in fiscal '26? And secondly, sir, gas curtailment has been a persistent challenge. The government has indicated its intention to engage with Qatar and the progress on this is expected in the final quarter of fiscal '26. What is your view on this time line? And when do you expect the curtailment issue to be resolved? We have seen oil production has shown encouraging signs in recent weeks with volumes reaching around 33,000 barrels per day. Do you expect oil volumes to recover at a faster pace than gas volumes going forward?

Thank you very much, I think, very insightful questions. On the dividend, I mean, the dividend policy for the dividend, I mean, you know that we announced PKR 5 today, and that has been the highest dividend also for the quarter and for the year, we announced -- the overall dividend comes to PKR 15, which is the highest in OGDCL's history. And that basically shows the confidence of the management and the Board and its desire to basically give the shareholders the due share and the profits of the company. As far as dividends of what are budgeted and what is there, we would do our utmost to meet those targets, which the government has set. But again, this will be a bit premature for me to comment exactly what the number is going to be because obviously, it is decided based on a number of factors, which primarily comprises of our collections, which have been extremely good this year due to the price increases and various efforts which have been made. So we hope that the trend will continue. And obviously, the dividends will be decided from the Board at that particular point of time when the quarterly meetings and the annual meetings are held. As far as the curtailment is concerned, we have been in talks with the government. And not only us, but the overall E&P industry is, I think, suffering from this particular perspective. And as you rightly mentioned, there's a discussion going on the RLNG. It's at a different governmental level. Obviously, we have raised the concerns at various forums and the government is cognizant of the fact that this has to be looked into very, very quickly, and they are making some concrete steps on this. I think it will be a little bit too premature for me to comment specifically on those, but I'm very hopeful that we will see some very good progress on that. The third question which you asked was -- sorry, I've missed that one. Can you just repeat that to me?

The third question was it pertained to oil production. Oil production has got encouraging signs in recent weeks. Volumes have been around [ 30,000. ] So do you expect oil volumes to recover at a faster pace than gas volumes?

Look, our priority, obviously, is both whatever -- the country needs both oil and gas. So it is not one or the other. We are looking at where we have -- we can potentially discover -- we can potentially recover more from the existing reservoirs as compared to not only relying on purely exploration potential. So we have managed to recover more of oil in this particular year, but our focus is on activities, which include both oil and gas. We expect over the next 4 to 5 years to have achieved a substantial increase in those numbers, both on oil and gas. So wherever we see the potential, it is we go and try and increase the recovery factor of that by using various techniques. And it could be either oil or gas. So there is no perfect formula for that.

We will take our next question from Asad Ali, Lucky Investment.

I hope you can hear me.

Yes, Asad, we can hear you.

Just a couple of questions. One would be what is your CapEx plan for the coming year and also the target wells that you are planning, exploratory and development. Apart from that, just one more question on the gas curtailment. I mean, at the start of the call, you mentioned the lost revenues were about PKR 40 billion, if I got that correctly. But is there an estimate of what production would have been had there not been any curtailment issue for OGDC? And lastly, if you can also share plans for the Wali block or the Bettani well. What kind of development plan can we expect in the near future? And what sort of production targets are you expecting for that well?

Okay. Thank you very much, Asad, for all your questions. Just let me know if I don't answer any of them, but let me just give you a few numbers before that. Yes, you are right. We said that our production curtailment, which happened through the year, the results were -- our revenues were down by approximately PKR 43.5 billion. So that would have translated into a substantial profit if I take my current net profit margin of approximately PKR 20 billion. So that's a straight hit to our bottom line. If there was no curtailment, our production for crude would have been approximately 32,709 barrels, gas would be 743 million scfs and LPG would have been 714 metric tonnes. So that would have been somewhat similar to what we had produced last year, which, in effect, shows that we have managed to -- although the decline continues in our aging fields, but we have managed to arrest the decline through various interventions in production optimization, et cetera, and using the latest technology. So that is a good sign for the company. We are actually looking at increasing that curve to moving up from what we have right now. And you would see that in the coming years to come, in the coming years to follow on that. As far as our CapEx plans are concerned, there are 2 or 3 big projects, which are already in the pipeline, as you would have -- as Mr. Ahsan Shaikh just mentioned, they would be approximately $100 million for those projects in the coming year, 1.5 years. And then our normal activity would also result in approximately a CapEx of PKR 50 billion to PKR 60 billion. So that is going to be our CapEx for next year, and that is excluding Reko Diq. Reko Diq, we expect a CapEx of approximately -- an overall CapEx for OGDCL of approximately $50 million in the upcoming year. So that would effectively be our CapEx spend. But obviously, the Reko Diq spend would not be directly coming in our CapEx. It will be more translated into the investment in associates as per the accounting policies. I hope I've answered all your questions.

Just one more. On the Wali block, what sort of plans are there? And what sort of production levels are you targeting?

Okay. I'll just hand it over to Mr. Ahsan Shaikh. He will just respond to that particular question.

At Wali block, our production target is about PKR 50 million in gas and oil is about 20,000 barrels. So our third well is to be completed in '27. Oil is 2,500 barrels per day in this year, 2,500 barrels per day in this year and gas is 36 MMscf in this year. And our target in '26, '27 is PKR 50 million of gas and about 5,000 barrels of oil per day. So our third well is near to complete in next month. We are in -- position from Wali block is about 32 MMscf of gas and about 2,500 barrels per day of oil in next -- within 2 months.

We will take our next question from Shankar Tarja, Topland Securities.

All right. I hope you guys can hear me. So my question is basically regarding the third-party gas allocation. There was a news today regarding Sui North has actually taken away the likelihood of assigning some allocation for the third party. I believe that was regarding the Razgir where you guys also have the interest. So if you can make a comment on this, when we can expect this issue to be resolved? And another -- my question is regarding the OGDC, the additional stake in the Orient Petroleum that was taking exit from the country. So if you can also share some light on when you are going to develop that particular area because that's also very high this zone, but at the same side, there could also be a very high potential for the oil and gas reserves in those areas. And the third question is, you guys also have the stake in the Spinkwam field of the Mari Petroleum. Any production time lines you can share for that particular field? And the last question is, any time line that you can put into the ADNOC production?

Okay. Let me just try and answer your question from the last question first. The ADNOC production, as I just mentioned, we're expecting it to come online by -- in the year '28, '29, our financial year '28-'29. As far as the Spinkwam is concerned, we're already taking production from that particular field. And currently, the field, obviously, is not online due to some line issues, but it will soon come online as you know, that we have a 35% stake in that particular area or field or exploration license. The third-party gas, which you're talking about is the single company which had got that approval from [ Ogra, ] and I think that was 35 million scf of gas, which was allocated as a third-party rules. I think that's an appropriate question to be asked as far as we are concerned to Sui Northern and the relevant people. I don't think we are the right people to comment on that. We just want to produce gas and sell it to the party whom the government advises us to sell. Obviously, staying within the guidelines, which are available. Shankar, I missed your other question as far as the additional -- you asked about something additional.

Yes. So OGDC has also -- has purchased a stake in the Orient Petroleum, a few of the licenses that they were purchasing and they were in close proximity to the North Balochistan and I guess, the [indiscernible] block, which is in Punjab. So if you can make some comments on that as well.

Orient Petroleum, I don't think we purchased anything from Orient Petroleum, Shankar. I think it could be Mari.

Okay. Okay. So if you can also -- you have already spoken much about the gas sector circular debt. So I mean, when we are talking about the power sector circular debt, there was a mechanism, there was SPV already in place, CPP, which government was borrowing from the banks. But in the case of gas sector calcular debt resolution in your view, or I mean, whatever discussions are happening at the government level, can you give us some idea? I mean, what format government is planning to choose to address this circular debt because there are 2 companies, Sui North and Sui South, but again, that are not completely linked to the government. So through which way government is going to retire this debt. One of the options that was under consideration was through the netting off of dividends. But again, that was also opposed by the IMF. So any indication or your expert view on this?

I think, Shankar, you are more expert on this than I am. So I think you can make a very -- a very -- a better guess than I can on this particular issue. I think it will be too premature for me to comment on this particular thing. Let's see how things pan out. I can just assure you that the ministry, the government at its highest level is looking at it very, very seriously. And we are hoping that this can be resolved within this current year.

We will take our next question from Muhammad Ali, AKD Securities.

Muhammad Ali from AKD Securities here. Sir, the previous exploration block award round during May and in fact, the award rounds last year, we saw OGDC securing almost every time half of the awards at the place and most of them being in Balochistan region. So what does OGDC plan for that region? Are there any big prospects, any investment plans for acceleration during the coming year? And my next question is, there is a well which was discovered during FY '23 -- fiscal year '23, Chak-5 Dim South-3. And it hasn't come online into production. It was, I think, 2,000 barrels a day in the initial announcement. So what is the news regarding that?

As far as your first question is concerned, that we obviously have been bidding and getting a lot of licenses, exploration licenses in Balochistan. As you would know that Balochistan and KP remain the most unexplored zones in the country. Sindh and Panda have been exploited quite a bit, especially the Lower Indus basin. Balochistan remains one of our priorities. We produce the most gas from Balochistan through our Uch field. And there are some very good prospects, which are there, obviously, in Balochistan, and that's why we're looking at licenses in that particular area. We are currently working in Balochistan, and we have been working in Balochistan even though there have been some serious security issues. We have worked with the agencies, and we continue to work through that because we believe that there are -- there is a good potential -- there are good potential as far as oil and gas is concerned, primarily, yes. [indiscernible], would you like to add anything on that?

Basically, in Balochistan and KPK, we have now our frontier basins. As you mentioned, they are less explored. And in Punjab and Sindh, mostly we have our mature basins where we have produced and we are now looking after the additional potential within these areas. So in addition to that, we are moving on to KPK and Balochistan to look after the new frontier basins and exploit their potential.

Okay. Your second question was Chak-5 Dim South-3, correct?

Yes. Yes. Yes.

You said that it is going to produce 2,000 barrels per day. I think what we'll do is we will come back to you on this particular question because we'll have to specifically look out that well. And so we will respond back to you in writing on that particular matter.

Sir, that well was in Chak-5 Dim South block, and it was announced during October 2022, if I'm being specific. And it was 100% wholly owned by OGDC.

We'll come back to you. We'll come back to you.

[Operator Instructions] We will take our next question from Asad Ali, Lucky Investment.

Yes. Just a couple more questions. There was a question around Razgir earlier. I mean question is whether the gas from Razgir will be sold to the same party as the gas from Mamikhel South? And are there any time lines that you can share when that is possible? And my second question would be, is the government at all thinking about the new petroleum policy? Or do you think that in the near future, the 2012 policy will remain effective? Yes. That's all.

Yes. So the first question is regarding Razgir, whether it be sold to Mamikhel South, same party as Mamikhel South. I think this is a prerogative of the operator, which is more on this. Once we have any confirmed listing, then we'll be able to comment on that. As far as the petroleum policy is concerned, the government always looks -- is always looking to basically see if they can enhance any policy guidelines. There have been various discussions around that listing. We feel that the petroleum policy 2012, along with other policies which exists currently are reasonable in that. But in any case, I think there is discussions and there is deliberations within the ministry to basically further make it more exciting for the country -- for the E&P companies and to attract some foreign investment.

That is all the time we have for question-and-answer session for today. I will now hand you back to your host. Please proceed.

If there are no further questions, we would like to conclude the call. And if there are further questions, they can send us e-mail, and we would be happy to respond.

Thank you for joining today's call. You may now disconnect.

Thank you.