New oil and gas discoveries in Sindh by OGDC & PPL


Sep 09 - 15, 2002

International oil prices which have surged to the highest level of the year is one of the major irritants for their multiplier effects on general prices especially the price of electricity and transportation cost in Pakistan.

International Benchmark Brent crude oil, which has already climbed more than a third time this year due to war fears jumped to over $28 a barrel soon after the US attack on Iraq last week.

In order to find a permanent remedy to this cost escalating factor in general and a heavy burden on our import bill in particular, concerted efforts are needed to get rid of this nuisance as early as possible. Although the production of oil from local resources is far behind the actual demand in the country yet its production gradually inching upward from the current 65000 barrel a day. There are reports of new oil and gas discoveries struck in Sindh by Oil and Gas Development Company (OGDC) while Pakistan Petroleum Limited (PPL) is also about to give some good news, it is learnt. However, in the natural gas sector the country has remarkable growth which may help providing an effective import substitute at least in the power and transport sector hopefully in a couple of years.

Working on these lines, the government run organizations operating in oil and gas exploration have already started working with an accelerated pace while the more international companies have also shown their keenness in the oil and gas exploration in Pakistan.

Currently, Sichuan Petroleum, a major Chinese oil and gas exploring company, already working in Pakistan has shown interest to expand its operations by joining hands with other companies both in the public as well as in the private sector in Pakistan. Experts in the oil and gas sector are attaching great importance to the expansion programme of the Chinese petroleum giant in Pakistan.

Director for International Cooperation of Sichuan Petroleum Administration is currently leading a delegation to his Administration to visit the ongoing projects and explore possibilities for acquiring more interest in the oil and gas search programme in Pakistan. Sichuan is already operating in Pakistan. One of its rigs has successfully drilled well No.13 in Adhi for PPL and is currently working on PPL's Adhi well No.14.

This Chinese company is planning to bring Pakistan two more new rigs having drilling capacity up to 7000 meters.

Sichuan has more than 40 years of experience in oil and gas exploration, production and marketing. It is accredited to have built the largest natural gas industry in China. The company is known to have advance experience, equipment and professional force to undertake all aspects of petroleum exploration, development and production which include geophysical survey and exploration, drilling engineering etc. The company is also manufactures CNG refueling stations.


The Oil & Gas Development Company Ltd (OGDC), as an operator in a joint venture with OPI and Government Holdings, has discovered oil and gas from Resham Well-1, located some 20 km north west of Sanghar in Sindh.

This was the second major discovery within a week, the fourth consecutive discovery in a row, during the current year in Sinjhoro Exploration licence of Sanghar District and fifth discovery over last one year, each from a distinctly different reservoir horizon.

Post-completion short duration test on half-inch choke size, the Resham well has produced 1400 barrels of condensate with six million cubic feet of gas per day. All the five discoveries will produce about 8000 barrels of oil and 40 million cubic feet of gas per day, which will contribute $116 million per annum towards import substitution.

Besides these new discoveries, OGDC has also been successful in achieving the enhancement of its oil production in the existing fields from 20,500 barrels per day by carrying out work-over on various wells over the last one year adding another $35 million per year to import substitution. The company's present production level is 24,500 barrels of oil, 800 million cubic feet of gas, 210 tons LPG and 60 tons sulphur per day.

In addition, OGDC carries 6000 barrels oil, 160 million cubic feet gas and 75 tons LPG per day from its 24 non-operated joint ventures, thus resulting in cumulative foreign exchange savings of $1.5 billion per annum

Presently, OGDC is planning to further increase its production capacity to yield additional 6500 barrels oil, 1880 million cubic feet gas and around 150 tons LPG per day by the end of June 2003. This will help in import substitution to the tune of $273 million per year.

Pakistan Petroleum Limited (PPL) has also started drilling of 5th well at Teshil Khanpur, district Shikarpur from this month. PPL is operator of Block 22 with a total share of 45 per cent. So far 4 wells have already been drilled in this block out of which 3 wells namely Hasan X-1, Sadiq X-1 and Hamza X-1 were found potential and are in production process while the 4th well was found dry.