Pakistan Oil production surges to 100,000 barrels per day

[Shabaz Sharif]

ISLAMABAD: In a major development, Pakistan’s oil production climbed 30 to 40 percent in one year to 100,000 barrels per day from 68,000 barrels per day, Zahid Muzaffar, Advisor to the Ministry of Petroleum and Natural Resources, divulged on Saturday.

In July 2013, the oil production stood at 68,000 barrels per day, which escalated to 100,000 bpd as of today – up over 30,000 bpd, he told the Finance Minister Senator Ishaq Dar during a briefing. Chairman Oil and Gas Development Company Limited was also present.

The advisor said the government issued over 41 block licences in 2014.

He said the total consumption of petroleum products in the country stands at 21.2 million tonnes of oil equivalent annually, while the country produces 4.7 mtoe of crude oil annually.

Muzaffar sensitised Dar about the positive development with regard to increase in the volume of gas production, saying during the last one year, 539 million cubic feet per day of natural gas has been added to the system.

However in the old gas fields, there has been a significant decline due to non-availability of modern equipment needed for gas exploration, he added. There is no equipment with the OGDCL for shale gas exploration and efforts are being made to invite local and foreign private investors for joint ventures in this sector.

The ministry advisor further said Pakistan is an under explored country where only 44 percent of the area is explored whereas the success rate is much higher in the country as compared to other regions, including Middle East.

In Pakistan, exploration well success ratio is 1:3, whereas in Middle East, it is 1:5 or more. He said the OGDCL plans to increase efficiencies in the seismic, drilling, production and processing by establishing partnership with the latest technology partners.

Foreign exploration and production companies will be invited to participate as joint venture partners.

The ministry advisor discussed the plans for attracting foreign direct investment to accelerate domestic production in oil and gas sector.

In the last one year, the domestic production of liquefied petroleum gas was doubled from 1,000 metric tonnes per day in July 2013 to over 2,000 metric tonnes per day.

In line with directives of the Prime Minister, LPG will be provided to cities of Balochistan and far flung areas where there is no gas transmission line and distribution system, he added.

The Finance Minister said that the government had already announced special incentives for foreign direct investment in oil and gas exploration. He said that it was high time that the foreign companies should be invited to invest in Pakistan.

The minister said the corporate tax rate has been reduced from 33 percent to 20 percent for the investment project set up by June 13, 2017 and at least 50 percent of the total project cost is in the form of equity through FDI.

Dar said to achieve the vision of an industrialised Pakistan in the future, “We have announced this special package”.

The finance minister directed the advisor petroleum ministry for adopting an aggressive marketing strategy to attract foreign investment in the light of the new incentives given in the Finance Bill 2014-15.

Senator Dar added that a comprehensive strategy and vision was required to overcome the energy crisis and to increase significantly the oil and gas production in order to operate it on international standards. He said the finance ministry would facilitate foreign investment in oil and gas sector.

Oil production surges to 100,000 bpd - thenews.com.pk

By next year Pakistan expect 140,000 bpd production!

 

[GreenFalcon]

Pakistan is a gold Mine yet to reach its full potential. It won't ever reach its potential until this fake democracy exists in the Shape of Sharif and Bhutto deception.

 

[Hyde]

where did it say that next year we expect 140,000 bpd production? I think this is unrealistic figure

Having said that, I am really happy to see the oil production surging to 100,000 bpd. That means we have saved millions of dollars from oil imports for this year. It somewhat justifies how we have been able to maintain foreign reserves better than expected

 

[Shabaz Sharif]

where did it say that next year we expect 140,000 bpd production? I think this is unrealistic figure

Having said that, I am really happy to see the oil production surging to 100,000 bpd. That means we have saved millions of dollars from oil imports for this year. It somewhat justifies how we have been able to maintain foreign reserves better than expected

Couple of months ago. This increase mean at least $1 billion saved.

“If the work continues like it is right now, then we should be able to achieve the target of 130,000 to 140,000 bpd in a short time,” he said.

Outlook: Oil production set to reach record 130,000 bpd – The Express Tribune

 

[niaz]

To the best of my info, total oil reserves of Pakistan are about 300 to 350-million barrels. Simply increasing production without finding major new reservoirs translates into exhausting your reserves too early.

As a rule of thumb, life of a reservoir is about 40 years. 100,000 bbl per day means 3-million bbls per month or 36-million barrels per year. At this rate you would exhaust your reserves in 10 years. What happens then?

In my humble opinion, it is a very short sighted strategy. One should worry about future generations and not use up ones wealth for the sake of short term advantage.

 

[Shabaz Sharif]

To the best of my info, total oil reserves of Pakistan are about 300 to 350-million barrels. Simply increasing production without finding major new reservoirs translates into exhausting your reserves too early.

As a rule of thumb, life of a reservoir is about 40 years. 100,000 bbl per day means 3-million bbls per month or 36-million barrels per year. At this rate you would exhaust your reserves in 10 years. What happens then?

In my humble opinion, it is a very short sighted strategy. One should worry about future generations and not use up ones wealth for the sake of short term advantage.

Sir latest news about known reserves as of 30 June 2013, what do you think about this?

The document reveals original recoverable reserves on June 30, 2013 were 1,102.6 million barrels with 731.5 million barrels (68 percent) cumulative production of oil and 371 million barrels (32 percent) balance recoverable reserves.

73 wells spudded, 18 discoveries made in current financial year

Friday, 06 June 2014 12:45
Posted by Parvez Jabri

ISLAMABAD: The government is taking solid measures to explore indigenous hydrocarbon resources for meeting the country's growing energy needs, spudding 73 wells and making 18 discoveries during current financial year.

Similarly, realizing that oil and gas reserves are dwindling, efforts have been accelerated and this year 50 petroleum exploration blocks were awarded to eight companies including local and foreign companies.

According to an official document said the country had exhausted more than half of the original domestic recoverable oil reserves, necessitating solid measures for exploring more oil and gas reserves to meet the growing energy needs.

The document reveals original recoverable reserves on June 30, 2013 were 1,102.6 million barrels with 731.5 million barrels (68 percent) cumulative production of oil and 371 million barrels (32 percent) balance recoverable reserves.

Similarly the worrisome factor is that gas reserves are depleting and if gas consumption grows annually even at moderate rates and the present recoverable reserves will largely be exhausted by 2025.

The document said when this limit approaches the marginal cost of gas supplies will rise.

The government spent $ 4.3 billion on import of petroleum crude from July-March 2014 compared to $4.0 billion in corresponding period last year, posting a growth of 6.2 percent.

It says the country's import of crude oil remained 44.9 million barrels during the same period compared to 40.9 million barrels in corresponding period last year, reflecting 11 percent growth.

However, the document said local crude extraction posted a growth of 12 percent as it stood at 23 million barrels in July-March 2014 compared to 20.5 million barrels in corresponding period last year.

 

[Kompromat]

New hydrocarbon extraction drive is bound to bear fruit. Power to our oil companies.

 

[Hyde]

To the best of my info, total oil reserves of Pakistan are about 300 to 350-million barrels. Simply increasing production without finding major new reservoirs translates into exhausting your reserves too early.

As a rule of thumb, life of a reservoir is about 40 years. 100,000 bbl per day means 3-million bbls per month or 36-million barrels per year. At this rate you would exhaust your reserves in 10 years. What happens then?

In my humble opinion, it is a very short sighted strategy. One should worry about future generations and not use up ones wealth for the sake of short term advantage.

as also rightly claimed by the news mentioned in post number 6. Our current reserves are close to 1 billion barrels and not 350 million barrels. There has been few discoveries since the last 2 years raising the total proven reserves near 1 billion barrels. By this rate, even if we extract 200,000 barrels per day it will take 15 years to exhaust all the proven reserves. By that time our energy demand may be a lot more and the shape of economy may be much better than today. What's more important is the saving of billions of dollars we are suppose to pay for importing oil in these many years. I am not sure about the cost of production so cannot comment over it.

You never know if we have made new discoveries by then and this is no longer a valid discussion.

 

[farhan_9909]

Pakistan certainly has no less than atleast 15-20billion barrels of Oil reserve's.

Hell we already have recoverable 9Billion barrels of shale oil reserves.If let say even after 15years we start extracting them,Those 9billion dollars would atleast last for 50years for Pakistan

 

[Hyde]

Pakistan certainly has no less than atleast 15-20billion barrels of Oil reserve's.

Hell we already have recoverable 9Billion barrels of shale oil reserves.If let say even after 15years we start extracting them,Those 9billion dollars would atleast last for 50years for Pakistan

You are right in a sense that if we exhaust all the oil reserves by 2030, we might be talking about shale gas. It would relatively be cheaper by then and the economy should be well beyond the trillion dollars mark. So we might be able to afford it.

 

[Shabaz Sharif]

as also rightly claimed by the news mentioned in post number 6. Our current reserves are close to 1 billion barrels and not 350 million barrels. There has been few discoveries since the last 2 years raising the total proven reserves near 1 billion barrels. By this rate, even if we extract 200,000 barrels per day it will take 15 years to exhaust all the proven reserves. By that time our energy demand may be a lot more and the shape of economy may be much better than today. What's more important is the saving of billions of dollars we are suppose to pay for importing oil in these many years. I am not sure about the cost of production so cannot comment over it.

You never know if we have made new discoveries by then and this is no longer a valid discussion.

That figure does not include many new discoveries made this year. And as we all know many will be discovered in coming years. Not to forget 9 billion barrels of shale oil. So government is doing 100% right thing. There is possibility Basha Dam 4500mw may need to be build from internal resources. Saved money can only help government in long run.

Pakistan certainly has no less than atleast 15-20billion barrels of Oil reserve's.

Hell we already have recoverable 9Billion barrels of shale oil reserves.If let say even after 15years we start extracting them,Those 9billion dollars would atleast last for 50years for Pakistan

Good point, Pakistan need to extract as many barrels as it can in quicktime. After that Pakistan recoverable 9 billion barrels shale oil will last long enough.

 

[niaz]

as also rightly claimed by the news mentioned in post number 6. Our current reserves are close to 1 billion barrels and not 350 million barrels. There has been few discoveries since the last 2 years raising the total proven reserves near 1 billion barrels. By this rate, even if we extract 200,000 barrels per day it will take 15 years to exhaust all the proven reserves. By that time our energy demand may be a lot more and the shape of economy may be much better than today. What's more important is the saving of billions of dollars we are suppose to pay for importing oil in these many years. I am not sure about the cost of production so cannot comment over it.

You never know if we have made new discoveries by then and this is no longer a valid discussion.

With due respect Sir, kindly read the post again. It clearly says

Quote

The document reveals original recoverable reserves on June 30, 2013 were 1,102.6 million barrels with 731.5 million barrels (68 percent) cumulative production of oil and 371 million barrels (32 percent) balance recoverable reserves.

Unquote

What it says that total oil ever discovered in Pakistan was 1,102.6 -million barrels. Out of this only 371- million is the balance left that is recoverable. This is not far away from my estimate of 350-million barrels as this includes all the discoveries up to June 30, 30, 2013. Only other discovery I am aware of is the 22-million barrels since then.

I am however surprised how people make a different meaning out of what is written in black & white? It is quite possible that in my old age I am given to reading every thing slowly and thus carefully.

 

[Shabaz Sharif]

$2.5b to be saved by enhancing oil, gas output: OGDCL MD

$2.5b to be saved by enhancing oil, gas output: OGDCL MD

 

[Hyde]

With due respect Sir, kindly read the post again. It clearly says

Quote
The document reveals original recoverable reserves on June 30, 2013 were 1,102.6 million barrels with 731.5 million barrels (68 percent) cumulative production of oil and 371 million barrels (32 percent) balance recoverable reserves.

Unquote

What it says that total oil ever discovered in Pakistan was 1,102.6 -million barrels. Out of this only 371- million is the balance left that is recoverable. This is not far away from my estimate of 350-million barrels as this includes all the discoveries up to June 30, 30, 2013. Only other discovery I am aware of is the 22-million barrels since then.

I am however surprised how people make a different meaning out of what is written in black & white? It is quite possible that in my old age I am given to reading every thing slowly and thus carefully.

oops mobile ki waja se... I am sorry missed out...

 

[Shabaz Sharif]

More good news to follow.

"Pakistanis will have soon many other good news as the oil/gas exploration and production companies are working in a block in Hangu District of KP and are of the firm believe that from this area they will find one of the biggest oil/gas reserve of the country," he added.