New gas discovery to boost domestic, industrial supplies: Abbasi

July 18, 2017


The government says there would be no gas loadshedding in the coming winter following the induction of imported LNG in the system.─File photo
The government says there would be no gas loadshedding in the coming winter following the induction of imported LNG in the system.─File photo

ISLAMABAD: The government on Monday announced three new hydrocarbon finds in Sindh with a total estimated flow of about 52 million cubic feet per day (mmcfd) and further claimed credit for achieving 101 discoveries in four years of its tenure.

Sharing details at a press conference, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said Petroleum Exploration Limited (PEL), a private firm, made the gas condensate discovery in Badin-IV North exploration licence at Zainab-1 well in Tando Mohammad Khan district of Sindh province.

The well was spudded on June 3, 2017 and drilled to the depth of 2,700 metres. A successful Drill Stem Test (DST) was carried out which flowed at a rate of 24mmcfd of gas and 765 barrels of condensate per day through 56/64” choke size.

The minister praised the company for consistent exploration efforts despite initial failures.

The block in Sindh was granted to PEL in January 2006. It is spread over areas of Badin, Hyderabad, Sujawal, Tando Allahyar and Tando Mohammad Khan districts. Two earlier wells at the block went dry but even then the company continued its efforts and was rewarded with the first discovery in the block, the minister added.

The Oil and Gas Development Company Limited (OGDCL) made a gas discovery in Thal exploration licence at Bhambhra-1 well of Sukkur district in Sindh. The well was spudded on April 26, 2017 and drilled to the depth of 4,023 meters. Drill stem tests were carried out in basal sands of Lower Goru which flowed at a rate of 5.73mmcfd of gas through 32/64” choke size. The total expected gas production from this well will be approximately 15mmcfd, the minister said.

Fresh connections for housing colonies approved

He said the Thal exploration licence was granted to OGDCL in February 2006 for Ghotki, Sukkur and Khairpur district of Sindh. This is the third discovery in the same block.

United Energy Pakistan (UEP) of China had also secured a discovery at Ali Well-II in Matiari, Sindh about a week ago. The well produced 13mmcfd, the minister said.

No more gas loadshedding: The minister said a lot of improvement has already been achieved regarding gas shortages with the induction of imported liquefied natural gas (LNG) in the system that would be further ramped up over the next few months.

The government has already resumed new gas connections to commercial consumers after a long time, he said.

“We have conveyed our approval to gas companies for new connections for housing schemes and they are in the process of finalising modalities for implementation,” he added.

Giving details, the minister said 68 discoveries out of total 101 have added proven reserves of about 5.4 trillion cubic feet (TCF) of gas while the results of the remaining 33 wells were yet to be confirmed.

During the same period, the country is estimated to have consumed about 5.2 TCF gas which meant more than 100 per cent replacement had been made for the resource consumed, he added.

Of all the 101 discoveries, Mr Abbasi said 87 were in Sindh and seven each in Khyber Pakhtunkhwa and Punjab.

Investment in exploration and production sector had declined by 40pc globally while we have been able to attract more of it, he said.

Pakistan has attracted about $10 billion worth of foreign investment in the exploration and development sector over the last four years which was also a record despite historically low global oil and gas prices, he added.

Published in Dawn, July 18th, 2017