Pakistani company hits major natural gas deposit

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, a member of the consortium told Pakistani media.

Oil and Gas Development Company Limited made the announcement in a filing to the Pakistan Stock Exchange, saying the Akhiro-1 well had been successfully tested at a rate of about 10 million cubic meters of gas per day.

OGDCL has a 20% stake 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 came just days after Oil and Gas Development Company Limited, the country’s largest exploration player, signed a preliminary agreement with a subsidiary of CNPC in China to explore close Pakistan. gas and shale gas resources.

Pakistan has abundant oil and gas resources, but their development will take some time and require significant investment that few international oil and gas companies seem ready to commit to at this time.

“If this is a gas reserve, it can replace LNG imports, and if it is oil reserves, we can replace imported oil,” a former member of Pakistan’s oil and gas industry regulator said after the results were released a three-year study. study of Pakistan’s oil and gas reserves.

Developing these reserves, however, would require an investment of about $5 billion, according to Muhammad Arif, and would take four to five years to start production. Even so, it might be worth finding and somehow motivating investors, given Pakistan’s current dependence on energy imports. The country imports almost 30% of the gas and 85% of the oil it consumes. They cost the state budget $17.5 billion last year and are set to rise to $31 billion in seven years as demand grows.

By Charles Kennedy for Oilprice.com

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