Oil and Gas Development Company Limited (OGDCL) has found new oil and gas deposits in Chabaro-1 well located in Khewari block in Sindh. OGDCL is the operator of Khewari block while Government Holdings Private Limited is a partner in the joint venture. They have 95 percent and 5 percent stake respectively in the block. The discovery of Chabaro-1 is the result of an aggressive exploration strategy adopted by the company. It has opened up a new avenue and will add to the hydrocarbon reserves of OGDCL and of the country. The exploratory well was drilled down to the depth of 3,674 metres. Based on estimate, expect annualized earnings impact of Rs0.17 per share (0.8 percent of fiscal year 2018 earnings) for OGDCL based on oil price assumption of $50 per barrel.
Earlier, OGDCL discovered oil and gas reserves at a newly tested well Chhutto-1 in Sindh in March 2017. (Chhutto-1) test shows flow of 8.66 million standard cubic feet per day of gas and 285 barrels per day of condensate.
OGDCL manages largest reserves of hydrocarbons in the country. It recently hit an all-time high production of 50,000 bpd, which is almost half of the country’s oil production these days. The state-owned firm’s net profit dropped 12 percent to Rs30 billion for the six-month period ended December 31, 2016 on the back of lower sales value and 100 percent higher exploration cost.
To another reports, Mari Petroleum Company Limited (MPCL) has made a new significant gas discovery resulting from its new exploratory efforts at Tipu-1 Exploration Well, drilled in Mari D&P Lease Area, located in District Ghotki, Sindh province. MPCL is the Operator of Mari D&P Lease Area with a 100 percent working interest share. The said well was spud in July 5, 2017 and has been successfully drilled down to the depth of 3,944 meters. The well was drilled with the objective to test the hydrocarbon potential of Northern Compartment at Lower Goru B Sand level as well as assess the hydrocarbon potential of Sembar as a probable shale/tight gas potential.
While the Drill Stem Tests carried out in Lower Goru “B” Sand, flowed gas at a rate of 15.5 MMSCFD at WHFP of 2153 Psi at 40/64 inch choke size and subsequently during Completion Integrity Test, the well produced 21.4 MMSCFD gas @ 40/64 inch choke size. This is the third consecutive new discovery following its earlier two discoveries at SML/SUL Limestone levels, which have been primarily achieved from the results of the Company’s extensive investment on acquisition of 1,079 sq.km wide-azimuth 3D seismic data, simultaneously imaging all the probable hydrocarbon bearing zones/compartments as well as the presently producing reservoirs followed-up by an equally extensive wells exploration program in the Mari D&P Lease Area.
The state-run Oil and Gas Development Company Limited (OGDCL) has struck a new oil and gas discovery in an area of Hyderabad, Sindh, raising hopes of fresh hydrocarbon openings. The discovery at exploratory well Chhutto-1 is the first hydrocarbon find in Bulri Shah Karim Tando Muhammad Khan in District Hyderabad.
Initial results encouraged the company to go for two more wells in the same licence areas, of which one well has already been marked for immediate drilling. The OGDCL is the operator of joint venture of Nim Block having 95 per cent share with 5pc shareholding of the federal government through Government Holdings (Pvt) Ltd (GHPL).
The structure of Chhutto-1 was delineated, drilled and tested using OGDCL’s in-house expertise. The well was drilled down to the depth of 3,820 metres. The well has tested 8.66 million standard cubic feet per day (MMSCFD) of gas and 285 barrels per day (bpd) of condensate through 32/64-inch choke at wellhead flowing pressure of 2,100 per square inch from “A” sands of the Lower Goru formation.
The “discovery is the result of aggressive exploration strategy adopted by the OGDCL”, the company said in a statement, adding that “it has opened a new avenue and would add to the hydrocarbon reserves base on the OGDCL and the country”.
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The OGDCL has the largest acreage, production and hydrocarbon reserves in the country. It is listed on the Pakistan and London stock exchanges with a debt-free robust balance sheet and cash reserves, although its huge financials are stuck up in the country’s chronic energy sector circular debt. The Company hit a record production level of 50,172 bpd of oil a few months ago; securing 57 percent share in the country’s total production of about 88,000 bpd. Pakistan meets around 12 percent of its oil requirement from indigenous resources. Historically, the OGDCL’s production has hovered between 35,000 and 45,000 bpd. The Company had taken in hand an aggressive exploration and development program in the last few years to take advantage of a slowdown in drilling activities in the Middle East and around the world.
Only recently, the Company launched four fresh seismic crews started operations in Kharan, Pasni, Gwadar, Zhob and Musakhel in Balochistan which remained “inaccessible due to security situation for a long time”.
At the time of filing this report, MARI’s share price increased 3.15 percent, or Rs. 48.85, to Rs. 1,601.10 with volumes of 2000 shares at the Pakistan Stock Exchange.
The Company is highly encouraged with the positive results of said seismic data which has identified additional new prospects at different reservoir levels, which the company plans to drill in the next 2-3 years to chase additional hydrocarbon in the area.
At present the Company operates four Development & Production Leases, eight Exploration Licenses and has joint venture interest share in five other Explorations. Gas supplies in Sindh continue to rise through the discovery of new wells and by developing existing resources.
Pakistan Petroleum Limited (PPL) enhanced its gas supplies from Kandhkot Gas Field (KGF) to 230 MMSCFD. The company is expected to further ramp it up to 250 MMSCFD in the future. Earlier, the field was supplying an average of 180 mmscfd gas to Guddu Thermal Power Station. Therefore the increase in supplies of gas will improve power generation efforts by the company, with a trickledown effect for consumers who need uninterrupted electricity.
The Company also has plans to drill seven development wells in KGF during this year. Of these, three wells have already been completed, adding 50 MMSCFD gas to the national supply. Besides, a three-rig operation remains ongoing.
PPL has been making consistent efforts, especially during the last nine months based on its commitment to the government, to tap into the potential that Kandhkot holds through fast-track development drilling, revamping of compressors and debottlenecking of production facilities. PPL has recently increased production through optimizing reserves replacement and development efforts from mature fields, including Sui, Kandhkot and Adhi, notably achieving a major milestone of net production crossing the 1 BCFE/day mark in November 2016. PPL is one of the major operators in Pakistan for exploring oil and gas reserves. It discovered 264 wells of gas and 46 of crude oil in different provinces in the last financial year. Its production of gas stands at 838 MMSCF and oil at 14,627 bbl.