ISLAMABAD, Oct 13 (APP): Besides successful negotiations with Independent Power Producers for providing relief to consumers, the government also takes strides in oil and gas exploration with five new explorations during last year hoped to mitigate masses suffering.
The remarkable stride towards energy self-sufficiency, five significant hydrocarbon discoveries by Oil and Gas Development Company Limited (OGDCL) during last financial year are poised to play a crucial role in helping Pakistan meet its growing energy demands.
As the demand of natural gas is increasing with every passing day, the OGDC spokesman says, these discoveries would help lessen the burden on existing local oil and gas resource.
He informed that recent five discoveries in Punjab, Sindh and Khyber Pakhtunkhwa helped the country to achieve an average daily output of 33,117 barrels per day (BPD) of crude oil, 717 million standard cubic feet per day (MMSCFD) of gas and 717 metric tons per day (MTD) of liquefied petroleum gas (LPG).
Without the production curtailments by SNGPL and UPL, crude oil production could have reached 33,495 BPD, gas production 771 MMSCFD and LPG production 736 MTD, reflecting potential increases of 1,107 BPD (3.1%), 7 MMSCFD (0.9%), and 16 MTD (2.2%), respectively, over last year’s figures.
“The government’s efforts have played a key role in reversing the declining production trend seen over the past five years, during which crude oil and gas output had dropped by 20% and 24.6%, respectively,” the spokesman said.
The local gas production in the country stood at around 3200 million cubic feet per day (MMCFD) and about 200 MMCFD consumed in its extraction. Out of the available 3000 MMCFD, 1200-1300 MMCFD gas was being provided to fertilizer and power sectors. The remaining 1700-1800 MMCFD gas was pumped through gas companies’ network to the consumers.
“The OGDCL remains committed to maintaining operational excellence while pursuing new growth opportunities to maximize shareholder value and support Pakistan’s energy needs,” the spokesman said.
As per the report on OGDCL’s Financial Results for Year Ended June 30, the company has made considerable progress in production optimization, achieving annual savings of approximately Rs. 34 billion in the form of import substitution.
The report says that OGDCL has embarked on a diversification project to assess geothermal potential of its fields and the ongoing R&D project in collaboration with Schlumberger is expected to complete by December 2024.
The company in August 12, 2024 also announced successful commencement of early commercial production of Tight Gas from Pakistan’s first-ever Tight Gas project, Nur West Well-1 at the Nur Development and Production Lease (D&PL), located in Sujawal district of Sindh province.
The Nur West Well-1 is currently producing 1.5 million Standard Cubic Feet per Day (MMSCFD) of gas with a wellhead flowing pressure of 1050 PSI. The gas is sourced from the Lower Guru formation (‘A’ Sand) and has been seamlessly integrated into the Sui Southern Gas Company Limited (SSGCL) network.
Another important discovery was made in August 2024 from OGDCL’s exploratory well Chak 202—1 in Mari East Block, in Rahim Yar Khan district of the Punjab province.
This discovery marks the second consecutive success in the Mari East Block and hoped to significantly contribute to bridging the energy demand-supply gap in the country.
The OGDCL has further intensified its exploratory efforts and is planning to drill three to four more wells in Mari East Block.
In August 30, 2024, it had also announced a significant gas condensate discovery at the Baloch-2 well, in the exploratory zone of the Sembar Formation located in Sanghar district of Sindh province.
The Baloch-2 well was spudded-in on February 24, 2024, and this exploration effort, conducted with in-house expertise and technical support from OGDCL’s Joint Venture Partners (JVPs), has yielded promising results.
The well’s Drill Stem Test-3 has confirmed a flow rate of 6.8 million Standard Cubic Feet per Day (MMSCFD) of gas and 388 Barrels of Condensate per Day (BCPD).
This discovery confirms untapped potential of the Sembar Formation and opens up a new exploratory play, paving way for further exploration and development of hydrocarbon reserves in Sinjhoro Block.
Pakistan also continues to engage in meaningful partnerships to bolster its energy sector and Federal Minister for Petroleum, Dr. Musadik Malik during his recent visit to China invited Chinese enterprises, especially those from Shaanxi province, to invest in Pakistan’s energy and petroleum sectors.
“Top companies from Pakistan specializing in upstream, midstream and downstream petroleum and coal companies were looking to work with Shaanxi Companies to collaborate through investment, joint ventures and technology transfer”, Dr. Musadik Malik said during his interaction with the Chinese company officials.
Malik met with representatives of leading Chinese companies and China National Offshore Oil Corporation (CNOOC) and discussed oil and gas exploration, refinery upgrades, coal conversion and regasification.
He visited different companies working mining, minerals and oil and gas exploration and offered them to collaborate with Pakistan in exploration of its vast minerals resources.
“Pakistan has vast mineral resources and partnership with Shaanxi Non-Ferrous would modernize Pakistan’s mining sector,” the minister informed Chinese companies.
The OGDCL and CCDC, the major player in Drilling and upstream Oil field Services of China signed a Memorandum of Understanding (MoU) for the development of shale and tight gas potential of Pakistan.
APP/zah/maz (APP Feature Service)