– File photo by Reuters
– File photo by Reuters

ISLAMABAD, Jan 8: The Pakistan Petroleum Limited, in collaboration with ENI, a foreign exploratory firm, is set to start drilling of a well in the Arabian Sea along Pakistani waters for discovery of oil.

The PPL has acquired exploration rights in a block located at 100km from Baghdad for oil exploration and it is hopeful about discovery of oil.

In a briefing to Senate Standing Committee on Petroleum and Natural Resources at the Parliament House, the PPL MD, Asif Murtaza, informed that drilling of exploratory well has already started in the block acquired in Iraq and there are bright chances of oil discovery.

In case of major success, the Pakistani company would benefit. The company is already working in Yemen on two blocks.

Regarding previous attempts made by the company to find oil from the sea, off Pakistani coast, the PPL MD informed the committee that in Mekran deep sea, some 12 exploration wells were drilled, but none succeeded.

The committee, which met with Senator Mohammad Yousuf in the chair, was informed that many foreign exploration companies still have interest in drilling of exploration well in Mekran Deep Sea. However, drilling has been delayed for one year due to various reasons.

Additional Secretary of Petroleum Naeem Malik informed the committee that drilling of an exploration well in deep-sea requires at least $100 million investment and foreign companies take decisions with due care.

The federal government recently announced new exploration incentives and the companies which would make first three discoveries in deep-sea would be given extra benefits with incentives to encourage more companies to come forward. The PPL MD informed that PPL is working in Zandan Block (Khyber Pakhtunkhwa) and is planning to acquire five more blocks in KPK as Tal Block area has great potential of discoveries.

To exploit un-conventional gas reserves in the country, some seven exploratory wells, eight appraisal wells, and 19 development wells have been planned in the next five years and the expected outcome would be 150bcf shale and tight gas production in the country.

He informed that shale gas and tight gas price approval has been sought from the regulator to speed up exploration activity. He further informed that some seven pilot projects have been planned for exploration of shale and tight gas reserves. He further informed that in Kirthar block, one exploratory well Rahman-1 is under way.

He informed that Hala, Kotri, Notari North, Jangshahi, Gambat and South blocks are potential areas for discovery of shale and tight gas reserves.

The committee was informed that PPL has geared up its seismic survey in the country and some 780sq kms were surveyed in 2011-12, while during the current fiscal year, some 1,400sq km have been surveyed.During the meeting, it was informed that District Kohlu (Balochistan) has huge gas reserves and due to law and order situation, exploration companies do not go there.

The committee was informed that the federal government was collecting 12.5 per cent royalty on gas production and the entire amount is transferred to provinces and if any provincial government is not spending the amount on welfare of its population or in the relevant district, where oil and gas have been found, it is their internal issue.

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Comments (11)

January 11, 2013 3:38 am
Horizontal drilling and fracking should be applied in the old depleted fields in Pakistan. It is being done here in Oklahoma with great success.
Haider Ali
January 11, 2013 1:10 am
Im not sure why Dawn is showing a oil platform on fire. This picture is of the West Atlas mobile offshore drilling unit in the Timor Sea. http://archives.dawn.com/archives/121871 Please at least show a picture of our oil rig.
Iqbal khan
January 11, 2013 1:17 am
How does it make sense article says: ISLAMABAD, Jan 8: The Pakistan Petroleum Limited, in collaboration with ENI, a foreign exploratory firm, is set to start drilling of a well in the Arabian Sea along Pakistani waters for discovery of oil. My question is how it's 100 km from Baghdad and yet it is along Pakistani water.Is my geography is weak or we have city called Baghdad in Pakistan. Help me guys.
danial tariq
January 9, 2013 6:27 pm
i hope we find some oil...or other natural resources
January 10, 2013 1:45 am
This article makes no sense at all. What are you talking about, drilling in Pakistani waters or drilling in Iraq? The writer seems confused. Shale formations hold great promise as has been the case here in the US. Large deposits of gas and petroleum have been discovered in the US, where the technogolgy was developed by a Texan who recently passed away. So Pakistan has all the possibilities to become an energy rich nation. Investment is the main hurdle. Law and order will bring that about if the government can provide that to the people who want to risk their capital.
January 10, 2013 1:21 pm
The article is making sense, the article is suggesting the PPL activities In iraq and Pakistan with there respective joint venture partners.
Nazir K Ali
January 10, 2013 6:11 am
How about drilling of the coast of Karachi, Thatta, Gwadar, Pasni, Jiwani for a change. many years ago there was news of off-shore oil exploration off the Pakistan seaboard. WHAT HAPPENED? As usual. No project in our country is ever undertaken successfully. Pity the nation that has lost sixty-five years. Salams for 2013.
January 11, 2013 3:14 am
better to live in a resources-poor and lame democracy, than to live under an oil rich despotic-permanent-dictator. if there were no sui gas, then chances are balochistan would be peaceful. natural resources are not always a boon. there is also a dark side. better to hope and wish for a slow and steady educated mass who will create hi-tech stuff like say japan or korea.
January 10, 2013 10:49 am
A number of attempts have been made in the past to discover oil and gas in the Arabian Sea, off the coast of Karachi. However, such attempts have resulted in no discoveries. I agree that we have to do more but considering the cost involved in drilling one well in deep sea, the exploration companies are very cautious. Making a sweeping statement that the nation has lost sixty-five years is very heartbreaking to say the least. I would like to know what contribution you have made in avoiding this loss of years to the nation or were you a part of it? Our people need to stop criticizing anything and everything. It is important that you understand before you criticize. Criticism is not bad but unnecessary and misunderstood criticsm is what hurts. We should understand the problem, then criticize it and then make sure something is done to correct it.
January 10, 2013 1:34 pm
I agree with you The revenues from this oil wealth would help provide education, health services, infrastructure and eradicate(!!!!!) poverty etc etc. in Pakistan. I would imagine a small amount of revenues would go for the defence needs to eliminate terrorism, God Willing.
January 10, 2013 3:54 pm
Heading is for Pakistan details are about Iraq...
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