PAKISTAN Petroleum Limited (PPL) and the Oil and Gas Development Company Limited (OGDCL) played a proactive role in the deep offshore well, Kekra-1, as per the joint operating agreement under production sharing agreement.

As such, both state-owned companies followed a thorough due diligence and decision-making process with the priority given to organisational and national interest.

Despite the fact that Kekra-1 was a challenging deep offshore well, operator ENI along with joint venture partners PPL, OGDCL and Exxon Mobil drilled it successfully. That said, pressure gradient data confirmed the presence of a water-bearing reservoir so there is no question of oil and gas water separation.

Foreign companies have been operating in Pakistan for decades and producing hydrocarbons under rigorous monitoring of the directorate general of petroleum concessions.

The ministry of energy has led to a successful balancing of influence versus contributions by foreign operators.

In sum, the era of cheap oil and gas and easy discoveries is over and high-risk frontier areas must be explored for which foreign investment and specialised technology transfer through foreign operators is not only preferable but mandatory.

Touseef Sadaqat

Karachi

Published in Dawn, June 12th, 2019