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Oil struck near Jhelum

Updated Jun 07, 2014 09:48am

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ISLAMABAD: A major oil reserve has been discovered near Jhelum in Punjab, opening up a new area for exploitation of hydrocarbon potential.

With an estimated production of 5,500 barrels per day, the Ghauri X-1 oil well is expected to be the country’s largest oil-producing well and is likely to start contributing its output to the system by the end of this month.

With the Petroleum Ministry’s consent, the Mari Petroleum Company Limited (MPCL) which operates the Ghauri Joint Venture (GJV), formally announced that it had made “a significant oil discovery” in the Ghauri X-1 oil well, located in the Dhemak village of district Jhelum.

“We have made a major oil discovery in the Sakessar Formation, in the eastern Potohar region in Ghauri X-1 Well,” said the company in a public announcement.

“The 3,800 metre-deep Ghauri Well is a landmark achievement, being the first hydrocarbon discovery in the eastern part of Potohar Plateau,” said the announcement.

This will go a long way in exploiting the so-far untapped potential in the area for other exploration and production companies, the statement said.

The oil from the Ghauri X-1 well has an API gravity of 22º and flows from the Sakessar Formation at a rate of 5,500 barrels per day. The well’s pressure (post-acid) is 1100psi and the well’s gauge or choke size is 32/64, the statement said, adding that oil reserves at the well are estimated at 22 million barrels.

Crude oil with an API gravity of 22º is known as heavy crude.

According to the company, additional reserves may also be present in the Kussak Formation, where oil flows at the rate of 136 barrels per day with a nitrogen kick-off, owing to the tight nature of the reservoir.

Sources said the company would be widening the road from the oilfield to the Rawalpindi-Lahore Grand Trunk Road, but would start transporting oil to the Attock Refinery near Rawalpindi by end of this month.

The company has also taken up the laying of a 14-kilometre pipeline from the Dhemak oil field to a filling point near Sohawa on the G.T. Road so that oil could be transported through tankers to the Attock Refinery.

The company is also considering setting up a refinery near Sohawa to refine crude oil as production from other fields is also expected to increase, an official said.

Published in Dawn, June 7th, 2014


Comments (57) Closed



shuaib Jun 07, 2014 10:03am

what a delightful news to start with a new day. Masha Allah

khangul Jun 07, 2014 10:07am

There is no dearth of natural resources and skilled manpower in the country. We need an honest, committed, educated, and visionary national leadership to take the country of the current political morass and move the country forward.

Kashif DXB Jun 07, 2014 10:24am

Al Hamdolillah.

Afzal Jun 07, 2014 10:25am

A very good news for the nation!!!!!

liaqat ali Jun 07, 2014 10:43am

It is rightly said that land is full of natural resources. Congrats all Pakistan.

Reza Jun 07, 2014 10:46am

Alhamdulilah

:)

Random stranger Jun 07, 2014 10:46am

Hopefully the people of Potohar will benefit from this and not Lahore. Thus far, our resources benefit others rather than us. If it wasn't for Pakistan army, we would be as poor as the Seraikis.

Khan Jun 07, 2014 11:03am

PML N is up to its old tricks of fooling people.This discovery was made in 1979 with lot of joy but was closed for reasons then unknown.I am witness to the gush of black oil about 50 ft in the sky.The reason given then was insufficient reserves.

Sanjeev Jun 07, 2014 11:25am

@khangul Unfortunately most of this manpower is skilled in the use of AK 47 and IUD's You need manpower skilled in science, maths, medicine etc to develop a country.

N K Ali Jun 07, 2014 12:23pm

This is good news but after that.................................................what next??? Salams

mohammadnoonnanna Jun 07, 2014 12:26pm

@Khan Let us see and should have optimistic view. No doubt there is no dearth of natural resources in our country but the it.thing is exploitation and exploration of the same instead of making politics out of

Atif Jun 07, 2014 01:00pm

@Khan Good discovery but with an annual consumption of around 400,000 barrels per day, how long will this reserve last? 500 days? :O

Danish Jun 07, 2014 01:00pm

Just to put things in perspective: the good state of Texas in US produces about 2,50,000 barrels of crude oil each day. Saudi Arabia produces between 8 and 10 million barrels per day.

AJ Jun 07, 2014 01:45pm

@Sanjeev ...Whats pinching you?

ahmedj Jun 07, 2014 01:55pm

Pakistan is blessed by natural resources. A few years ago, while serving in a remote mountainous area, there was a place called in local language meaning literally 'glittering plains'. I asked a local why it is known by this name and he said that before roads were made and villagers moved out to search for work, people used to collect gold from the local stream. I am sure there are gold deposits in that vicinity.

Saad(DXB) Jun 07, 2014 02:25pm

The oil reserves in this well are only 22 million barrels? This means the oil will run out in 10.95 years. Isn't this a bit too soon for an oil well?

Khalid Jun 07, 2014 03:24pm

Great news! Pakistan has "all the necessary resources in abundance" Its just a matter of having the "right people" to do the job.

Akram Jun 07, 2014 03:45pm

great news, note this was found by a private company. So It shows we should be inviting many more private companies to explore for oil, gas a minerals. This type of work is what causes massive economic development.

yasir Jun 07, 2014 04:07pm

@khangul agree

Maher Usama Jun 07, 2014 05:08pm

Finally a g0od news MASHALLAH..!!! :)

Mehdi Hussain Jun 07, 2014 05:22pm

Khuda ka shukar. Ye 1 achi khabar hai.

raja muhammad ahmed Jun 07, 2014 07:33pm

of course good news. I hope peoples of that area should be benefited also because there are are very rare chances of employment in jhelum and surrounding areas.moreover if distribution of wealth is correct in pakistan this discovery could bring little changes.i hope n league will not adopt same policy of "anaha wandey rewariyan tey mur mur apniyan noun"

Taayab Jun 07, 2014 07:53pm

@Saad(DXB) something is better than nothing, right? A country which so badly needs energy, even a bucket of Oil is a welcome news.

Aamir Jun 07, 2014 08:07pm

Good news only proves that we have more resources underneath our land. We only need honest leadership. Revolution is coming soon.

hassan Jun 07, 2014 08:22pm

well i guess obama has something to say about terrorism in Pakistan now when we have discovered even more oil here!!! anyway congrats team Mari oil company...........i understand the hydrocarbon potential of the area as i m a geologist myself :)

Modi Jun 07, 2014 08:25pm

It is a small field by any standard. So don't get excited about it. The repeated notion that Pakistan is rich in natural resources is also false and deceitful. You don't have water, oil, gas, forests, minerals etc in significant quantities, so what are you gloating about ?

Amir Bangash Jun 07, 2014 09:37pm

Congratulations to all Pakistanis. My previous posts on such discoveries are testimony to the fact that there is no dearth of Oil and Gas under the soil of Pakistan but main hurdle is exploration. Insha Allah the day is to come soon when the country will be self sufficient in energy sector. Mari Petroleum Company Limited (MPCL) good job done and keep it up. Pakistan Zindabad.

Khan Jun 07, 2014 10:05pm

@Danish. Did these areas have all the astronomical production from day one? Or did you mean whatever is being discovered in Pakistan needs to be flushed in the toilet. Or it is worth nothing and just keep the status quo to amuse people like some. Or some people cannot just swallow a "small discovery". Please clarify, what is the real point for quoting these statistics?

Khan Jun 07, 2014 10:10pm

@Atif. Let's live in the moment. Let's not be pessimistic. Enjoy whatever we have and aim for the best. We will Inshallah succeed.

puneet Jun 07, 2014 10:54pm

Only good thing they find in so many years and name it after invaders.

mohammadnoonnanna Jun 08, 2014 12:04am

@ahmedj I agree with you. Some 10 or 15 years or so back, someone told that we have such a great kind of white gold in Northeren Areas which are much much more fine than that of Australia and South Africa, but it was not being dug out due to certain pressures.

m.amin khan Jun 08, 2014 12:39am

good news about oil. Pakistan has lot more reserves of oil and gas. it is unfortunate that we cannot overcome internal and external pressures/lobbies who continiously resist efforts to take out oil and gas. just to point out to one sure reserve- River Sind Delta where we do not need much science to take out hydrocarbons. . all the old large rivers at delta (where river falls at sea) have lot of oil and gas , you name any one of deltas - Nile , Mississipi , Amazon , great yellow river in china, Dajla/faraat delta at head of Persian gulf , indian side of Sind Delta, Ganga/Jamna delta and others, all are taking out huge amount of oil and gas from there deltas unfortunately except us. Can respected Shariff brothers look into it??? It is like darkness under the lamp. .

m.amin khan Jun 08, 2014 12:57am

good news, Pakistan has lot of hydrocarbon reserves. All old/ large rivers at their deltas have huge quantities of hydrocarbon in the world. No efforts are being made. the government should look into such sure reserves.

Wez Jun 08, 2014 01:33am

@Atif

With 5500 Barrel per day and 22 million expected reserves found there, it will last 11 years, you were really bad in maths my friend :)

razi Jun 08, 2014 01:38am

The annual pak production is little more than one lac barrels. An year earlier it was 65000 barrels a day.we can fetch 6000 to 10000 barrels a day at max from the well. So roughly the well can go for 100 years. The gas and nitrogen is not known. The quantity is straightaway increased the local product into ten PC more.

khuma Jun 08, 2014 06:13am

Happy birth to healthy child of Jehlum valley.

ali Jun 08, 2014 06:49am

@Atif energy projects dont work that way.well contains 22 million barrels means 7000-8000 barrels will be pumped from it per day and then more wells will be drilled around it to sustain and grow production and then in a few years it will hit peak production at maybe 15000-25000 barrels and then will slow decline daily output.commercially the company will consider that WTI is between 100-104 per barrel.brent is $108 and average price for local crude is $87 per barrel.use this figure into 22 million barrels and this is the basic assesment of commercial viability of the project this well will not in its life produce 400,000bpd and its not drilled to fulfil our entire crude demand.at present pakistan produces aprox 100,000 of crude from more than 100 wells

Ahmer Jun 08, 2014 06:57am

Finally, sustainable prosperity is within sight. Hope our rulers do not blow it away.

Ahmer Jun 08, 2014 07:03am

Soon Pakistan will be able to meet the entire need for oil of every friendly Muslim country and China.

Irfan Jun 08, 2014 04:03pm

After the iron ore discovery , another good news of Oil discovery . Long Live Pakistan

khanm Jun 08, 2014 05:19pm

Gentlemen don't have your hopes very high.. we have heard similar news before.. largest coal mines in Sind. What is the out come, is it beneficial for the poor. or just additional money for our corrupt politicians..... just wait don't jump to the conclusion..

Just Someone Jun 08, 2014 11:25pm

It is a good discovery. But guys keep in perspective the size of the discovery. It is small and so are the total reserves. We need to find more reserves.

Just Someone Jun 08, 2014 11:28pm

@Khan : It would not have been commercial at that time. With the oil prices now crossing USD 100 per barrel and the advent of new refining technology, the discovery would have become commercial. Even 6 to 7 years ago this discovery would not have been commercial.

Please remain realistic and do not raise unnecessary expectations or controversies.

Just Someone Jun 08, 2014 11:38pm

@ali : Just to add. These are in place reserves, not recoverable reserves. Assuming a 20 to 30% recovery factor based on the current production, the real recovered oil would be much less. Plus this is heavy crude. So the recovery factor would be low. I hope that after doing doing appraisal wells, they find more reserves there as well.

Plus this region is geologically very complex and it takes 6 to 18 months to drill a well in this area compared to about 30 days in Sui and Sindh.

Just Someone Jun 08, 2014 11:54pm

@Amir Bangash : While every discovery is good news, but let us be realistic about it. This discovery and the accompanying reserves are small. Moreover we do not have a lot of proven natural resources in Pakistan that can be readily exploited. We are in general a resource deprived nation, including water. We are a nation with 8th least availability of water per capita in the world.

We are usually lied to about being a very resource rich country. The earlier we understand our limitations as a country and that this indeed is not the case, the quicker we will progress. We will be able to conserve our resources and be able to make the most of them.

Amir Bangash Jun 09, 2014 12:35am

@Modi. Please don,t get upset with such discoveries otherwise you will be shocked to know that what to talk of other natural resources Pakistan even has gold deposits and has yet to start with exploration work.

Nigga Jun 09, 2014 03:29am

Americans be like.... "Jhelum needs freedom"

Nigga Jun 09, 2014 03:32am

especially LARGE OIL RESERVES should not be announced publicly..... see what happened to other south asian oil rich countries

Modi Jun 09, 2014 11:03am

@m.amin khan Are you a geologist ? Are you speaking from facts and knowledge or are you simply indulging in wishful thinking ?

km Jun 09, 2014 01:16pm

@AJ ... don't take it that way. in fact it may hurt you but it is true to some extent.

Well-wisher from India Jun 09, 2014 07:33pm

May this bring prosperity to Pakistan!

google Jun 09, 2014 07:51pm

@Ahmer

Why Sarcasm ? Because it is illegal to beat crap out of people.

Amir Jun 09, 2014 08:17pm

No one is mentioning destruction of land around it? Natural resource ends natural beauty. End to our environment.

abc to xyz Jun 09, 2014 11:56pm

@Random stranger, what a stupid post.

sharouk Jun 10, 2014 01:14am

MashaAllah, in all this misery, violence and other disasters, finally some Great News. May ALLAH have mercy on Pakistan.

Sarah1 Jun 10, 2014 01:36am

Ah..all of Pakistan's problems have disappeared with this discovery. Now rejoice people. Until TTP drops a bomb right into this well!!

SYED ADNAN SHAFQAT Jun 10, 2014 10:25am

Its indeed a good news for the country provided that the efforts and expertise are applied by the local companies and no foreign companies are involved in explorations, as the country needs to pay huge amount of royalty from the revenues of oil to the foreign companies ?????

We need to have more of such explorations as our country is blessed with huge number of mineral & oil reserves !