Pakistan confirms large oil and gas discovery in Khyber-Pakhtunkhwa province
If confirmed, future output could materially cut down fuel imports in future
Islamabad: Pakistan has discovered new deposits of oil and gas in the Kohat district of Khyber-Pakhtunkhwa province.
The discovery was reported by state-owned firm, Pakistan Oilfields Ltd. (POL), at the exploratory well in Tal Block, Mamikhel South-01. Tal Block is considered one of the largest hydrocarbon producing blocks in the country.
“Well test has shown 3,240 barrels of condensate per day, 16.12 mmscf (million standard cubic feet) of gas per day, and 48 barrels of water per day,” POL announced in a notification on Pakistan Stock Exchange (PSX). “Actual production may differ significantly from the test results.”
POL holds 21 per cent stake in the Tal Block while Pakistan Petroleum Ltd. (PPL) and Oil and Gas Development Company (OGDC) each own 28 per cent.
MOL Pakistan, a fully owned subsidiary of Hungarian multinational oil and gas exploration firm MOL Group and which has about 8.4 per cent in the Tal Block also shared the news of “significant” gas and condensate reserves in Pakistan.
“I am delighted to announce that we have made another discovery in Pakistan,” Berislav Gaso, MOL Group’s exploration and production Executive Vice-President, said. “This new discovery has de-risked an exploration play in deeper reservoir in the Tal Block, leading to new upside opportunities. The Mamikhel South-1 discovery will also help to improve the energy security of the country from indigenous resources.”
The current discovery comprises about 15 per cent and 5 per cent of Tal Block’s present total oil and gas production respectively, reports suggest. Mamikhel South is soon expected to be added to production due to its proximity to another field.
Experts have welcomed the news of recent discovery, but also called for the exploitation of unconventional oil and gas assets - such as shale oil and shale gas - as well as inviting foreign companies to boost the country’s oil and gas sector.
Pakistan relies on imports for about 80 per cent of its energy requirements, spending nearly $13 billion a year on crude oil and gas. The country’s total oil production stands at 89,000 barrels per day (bpd) and 3,936 million cubic feet per day (mmcfd). Demand is increasing by 8 per cent a year.