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A consortium of companies drilling for oil and gas in southeastern Pakistan has announced a sizeable discovery that would de-risk other prospects in the area, one member of the consortium told Pakistani media.
Oil and Gas Development Company Limited made the announcement in a filing to Pakistan’s stock exchange, saying that the Akhiro-1 well was successfully tested at a rate of some 10 million standard cu ft of gas daily.
OGDCL has a 20% working interest in the Sindh project, alongside operator United Energy Pakistan Limited, with 75%, Government Holding Private Limited with 2.5%, and Sindh Energy Holding Limited, also with 2.5%.
Local news publication Business Recorder noted in its report on the news that the announcement had come just days after Oil and Gas Development Company Limited, the biggest exploration player in the country, had signed a preliminary deal with a subsidiary of China’s CNPC to explore Pakistan’s tight gas and shale gas resources.
Pakistan has abundant oil and gas resources but developing them will take a while and will require significant investments that few international oil and gas majors appear ready to commit at this point.
“If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil,” a former member of Pakistan’s oil and gas industry regulator told local media following the release of results from a three-year survey of Pakistan’s oil and gas reserves.
Developing these reserves, however, would require investments of some $5 billion, according to Muhammad Arif, and take four to five years to begin production. Even so, it may be worth to somehow find and motivate investors given Pakistan’s current energy import dependency. The country imports almost 30% of the gas and 85% of the oil it consumes. These cost the state budget $17.5 billion last year and are set to swell to $31 billion in seven years as demand grows.
By Charles Kennedy for Oilprice.com
Oil and Gas Development Company Limited made the announcement in a filing to Pakistan’s stock exchange, saying that the Akhiro-1 well was successfully tested at a rate of some 10 million standard cu ft of gas daily.
OGDCL has a 20% working interest in the Sindh project, alongside operator United Energy Pakistan Limited, with 75%, Government Holding Private Limited with 2.5%, and Sindh Energy Holding Limited, also with 2.5%.
Local news publication Business Recorder noted in its report on the news that the announcement had come just days after Oil and Gas Development Company Limited, the biggest exploration player in the country, had signed a preliminary deal with a subsidiary of China’s CNPC to explore Pakistan’s tight gas and shale gas resources.
Pakistan has abundant oil and gas resources but developing them will take a while and will require significant investments that few international oil and gas majors appear ready to commit at this point.
“If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil,” a former member of Pakistan’s oil and gas industry regulator told local media following the release of results from a three-year survey of Pakistan’s oil and gas reserves.
Developing these reserves, however, would require investments of some $5 billion, according to Muhammad Arif, and take four to five years to begin production. Even so, it may be worth to somehow find and motivate investors given Pakistan’s current energy import dependency. The country imports almost 30% of the gas and 85% of the oil it consumes. These cost the state budget $17.5 billion last year and are set to swell to $31 billion in seven years as demand grows.
By Charles Kennedy for Oilprice.com
