State-owned Pakistan Petroleum Limited (PPL) has discovered two oil and gas reserves in Sindh and Balochistan. The gas and condensate was discovered from its exploratory well in Khairpur in a joint venture with other companies. It has tested 152 barrels oil per day and 28.6 million cubic feet of gas reserves at Khairpur well. The PPL has announced another major discovery of oil and gas in Markand area of Balochistan. Around 10.07 cubic feet gas reserves have been discovered at Markand well with 132 barrels oil per day. It is good news not for government but also people of the country who facing current gas crisis that is worsening day-by-day even people disable to prepare the meals

These two discoveries are the result of the company’s aggressive strategy of exploration in order to reach new avenues for hydrocarbons exploration and production

Natural resources play an important role in the development of the economy of a country. God bless plenty of resources in Pakistan and it considers one of the rich countries in the world having a large amount of coals, gas, oil, gemstone, copper, minerals and gold reserves.

In the latest development, PPL has discovered hydrocarbon reserves in an exploratory well, Bistro-1 in Latif Block, which is located in Khairpur District, Sindh and exploratory well, Margand X-1, in Margand Block, in Kalat Plateau, Balochistan.

Some months ago, Prime Minister Imran Khan's dream to becoming country self-sufficient in oil dashed after no reserves were discovered in the Arabian Sea off the Karachi coast. The drilling work at Kekra-1 well in deep sea near Karachi stopped after no oil or gas reservoir could be found. Italian firm ENI, the operator of the Kekra-1 offshore block, started drilling in a joint venture with US firm ExxonMobil, one of the world's largest oil and gas firm, and Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).

According to the Hydrocarbon Exploration Licensing Policy (HELP), a vital document about way forward to self-sufficiency in oil and gas sector authored by an eminent energy expert Engineer Arshad H Abbasi associated with SDPI has pinpointed that Pakistan authorities have so far ignored the area bordering with India, Rajasthan for exploration and production (EandP) activities for oil and gas deposits knowing the fact that India in its side of border is currently producing 1,75000 barrels per day (BPD). It also raise the red flag asking as to why Pakistan companies are not active for EandP activities in this area since long and if Pakistan’s oil and gas reserves going to Indian side.

Through HELP, Arshad H Abbasi attempted to draw the attention to Prime Minister Imran Khan, Ministry of Defence, Ministry of Finance, and Ministry of Petroleum towards the matter, maintaining that the country needed self-reliance in the oil production to cut import bill by more than half. The government must consult with the energy experts how to explore more oil and gas reserves in the far-flung areas with the border side specially India Rajasthan areas.

A few years ago, the US Energy Information Administration (EIA) had reported confirmed recoverable reserves of around 200 trillion cubic feet of natural gas and around 58 billion barrels of oil in Pakistan shale structure — many times larger than existing conventional gas reserves of around 20 TCF and 385 million barrels of oil.

The Federal Minister for Petroleum, GhulamSarwar Khan, said the gas crisis, including the issue of low gas pressure would be resolved soon as steps are being taken to mitigate the sufferings of the consumers. The government has notified a ban on the import of furnace oil, and is looking to move the generation of electricity to LNG and coal in the future.

Pakistan Petroleum is the sole operator of the exploratory well and holds 100% working interest in it. The well was spud on 30th June, 2019 to measure the depth of 4500 meters inside Chiltan Limestone.

Modular dynamics testing was done which proved the presence of hydrocarbons. Accordingly, a drill stem test was done in Chiltan Limestone, during which the well flowed a maximum of 10.7 million cubic feet per day of gas at 64/64 inches choke size at a flowing level of head pressure of 516 pounds per square inch with 132 barrels per day liquid. However the nature of the liquid is being investigated and the well has the potential to flow at higher rates after an acid stimulation job, stated the company.

It is highlighted that this is the first gas discovery on Kalat Plateau and it has opened a new sub-basin for further hydrocarbon exploration. The discovery of Margand X-1 well is the result of an aggressive strategy in the exploration of frontier basins adopted by PPL, to open new avenues for hydrocarbon exploration and production in Balochistan.

Cumulatively, the company has discovered 39.3 MMscfd of gas.

These two discoveries are the result of the company’s aggressive strategy of exploration in order to reach new avenues for hydrocarbons exploration and production. Both the discoveries will add to the company’s hydrocarbon reserves and will contribute in reducing the gap between the supply and demand of oil and gas in the country through exploitation of indigenous resources.

The Well Bistro-1 discovery was made by the Joint Ventures of the Latif Exploration License, which holds 33.30% working interest, along with Eni Pakistan (M) Ltd with 33.30% working interest and United Energy Pakistan, with 33.40% working interest and is also the operator of the block.

According to the details, the well was spud on 6th of October 2019 to test the hydrocarbon potential of B and intra B sands of the Lower Guru formation, as primary and secondary objectives. The well was successfully drilled to a depth of 11,854 ft.

Upon the completion of the well, B sand zone was perforated, which flowed 28.6 million standard cubic feet per day (MMscfd) of gas with 152 barrels per day (condensed) water at a flowing wellhead pressure of (FWHP) 3116 pounds per square inch at 44/64” choke size

Pakistan Petroleum Limited was incorporated on 5 June 1950, when it inherited the assets and liabilities of the Burmah Oil Company Ltd. which initially holds 70 per cent of the share with the rest mostly held by the Government of Pakistan (GoP).

Meanwhile, some months ago, the summary of Khyber Pakhtunkhwa seeking no objection certificate (NOC) from the federal government for oil and gas exploration and production activities from the areas where the seepages of oil and gas are found, which was earlier very part of agenda of the Council of Common Interests (CCI). It has raised eyebrows of many and they believe that it was a result of some lobbying at the federal government level.

Interestingly, the summary of KP was very much endorsed and supported by Sindh and Balochistan governments. It has been estimated that KP, Balochistan and Punjab have the potential to produce 200,000 oil barrels per day (BPD) and 1.2 billion cubic feet per day through launching the exploration and production activities of oil and gas where the seepages of oil and gas are found in the said three federating units.

© Pakistan Press International, source Asianet-Pakistan