ISLAMABAD, May 31: The first-ever Pakistan‘s private company in oil and gas sector — Petroleum Exploration Limited (PEL) — is all set to take over from Sunday the operatorship from Pakistan Petroleum Limited (PPL) of Block 22 for Development and Production (D&P Lease No 155/PAK/2003) over Sadiq X-1, 156/PAK/2003 over Khanpur X-1 and 15/PAK/2003 over Hasan X-1 in Sindh and Balochistan.
According to a press release, the joint venture partners in this Block were Pakistan Petroleum Limited with working interest of 35.5 per cent. The Government Holdings Limited with working interest of 25 per cent and Pyramid Energy International Inc, Canada, with 15.78 per cent. The working interest of Petroleum Exploration Limited is 23.68 per cent.
This block was awarded to PEL in November 1994. The operatorship was transferred to joint venture partner PPL in 1996. The Block is located in the administrative districts of Shikarpur, Jacobabad, and sukkur in Sindh and district Nasirabad in Balochistan.
It has on its north giant Sui gas field, Uch and Loti Has fields, on South it has Kandra gas field, and on east it has Gheuspur, Kandhkot and Mari gas fields.
The total investment in the Block is $16.9 million up to March 2003. The cost for relocation of dehydration unit (30 mmscfd) is $115,503. The processing facility (MDEA plant of 20 mmscfd) had been purchased from Presson-Descon. The total cost of MDEA plant is $2,411,175.
Based on the completion of geological and geophysical studies and reprocessing of 265 line KM of seismic survey five major prospects were identified. Hasan X-1 was spud on February 20, 1999 up to the total depth of 1.132. The well has penetrated 41.4 meters of gas column in Sui Main Limestone Formation. A successful drill stem test was carried out which produced 13.38 mmscfd of gas at choke size of 56/64” with flowing well-head pressure of 812 psif. The heating value of the gas is 652 btu/scf.
Sadiq X-1 was spud on February 20, 2000, and reached its depth of 1,172m. The well has penetrated 15.5 meters of gas column in Sui Main Limestone Formation. One successful drill stem test was carried out, which flowed at a stabilized rate of 12.08 mmscfd of gas at a choke size of 64/64” at flowing well-head pressure of 591 psif. The heating value of the gas is 734 btu/scf.
Hasan X-1 was under EWT and supplied gas to SNGPL at the flow rate of 14 mmscfd from
PEL set to take over operatorship from PPL December 1, 2000, to April 3, 2003, when D&P lease was awarded. Since April 3, 2003, Hasan is supplying 19 mmscfd of gas on long-term GSA basis.
The director general petroleum concession (DGPC) had approved declaration of commerciality over Block-22 in November 2002. Subsequently, DGPC granted D&P leases for Hasan, Sadiq and Khanpur and approved the development plant in April 2003.
The salient features of the development plan having three phases include Phase 1 — Hasan X-1 Extended Well Test (Commenced in December 2000 and 14 mmscfd gas was supplied to SNGPL till April 3, 2003), Phase 2 — Tie-in Sadiq and Khanpur-1 with the existing processing facility and enhance the production from current rate of 14 mmscfd to 20-22 mmscfd, and Phase 3 — Drill and complete development well Hasan 2 on structure D and increase the gas supply to 30 mmscfd. A compressor station will be installed in 2006 to maintain the plateau rate of gas production.
PEL has an aggressive exploration policy and presently has exploration licences over Kandra and Mirpur Mathelo Block and mining lease over Bada Gas field with the working interest as Kandra 95 per cent and Badar gas field 26.32 per cent accordingly. Petroleum Exploration Limited is the operator in all these blocks.