• Wednesday, August 21, 2019

Latest news about Oil Gas possible discovery

Discussion in 'Pakistan Economy' started by ghazi52, Mar 22, 2019.

  1. ghazi52

    ghazi52 ELITE MEMBER

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    Drilling activities in Pak Kekra-1 well sustains blow of mud loss

    Highlights
    • Drilling process has braved a blow of mud loss owing to which investment on drilling is feared to touch the staggering figure of $100 million
    • Exxon Mobile, OGDCL and Pakistan Petroleum Limited (PPL) are the partners of the Joint Venture headed by ENI
    • The discovery is anticipated to yield gas flows which can be as big as Sui field




    [​IMG]

    ISLAMABAD: In a new development, the drilling activities that kicked off with the budget of $75-80 million by joint venture headed by ENI in Kekra-1 well in Indus G Block located in Pakistan’s deep sea has braved a blow of mud loss owing to which investment on drilling is feared to touch the staggering figure of $100 million. The drilling had started with the hope of good news in the months of March and April.

    EXXONMobil is drilling the well and it was given the target to drill the Kekra-1 well by 5,800 metre deep in March, but when the drilling reached by 4,900 metres, a huge kick pressure was felt owing to which the process braved the mud loss, a relevant official at Petroleum Division told The News.

    He said that mud loss means the loss of special chemicals used in the drilling process and because of this development, the exploration companies will have to again spud the well by 1500 metres. Keeping in view the new development, now the exploration companies have started side tracking process to continue its drilling process.

    Addition Secretary and spokesman of Petroleum Division Sher Afgan confirmed that during the drilling activities, exploration companies sustained mud loss during the ongoing drilling of Kekra-1. However, he said that the sign of kick pressure is good as it determines that something is in the well.

    Exxon Mobil, OGDCL and Pakistan Petroleum Limited (PPL) are the partners of the Joint Venture headed by ENI. Pakistan is eying massive oil and gas recovery in Kekra-1 well.

    The Indus G Block was first given to OGDCL on August 12, 2006 but later on it was transferred to ENI on April 25, 2007 under Petroleum Sharing Agreement. Now the ENI as operator of four companies’ joint venture has started E&P activities in Pakistan deep sea. In case of huge discovery, Pakistan’s share in oil and gas discovery can go up to 70 percent depending upon the slabs mentioned in the agreement.

    The country at present possesses original onshore recoverable gas resources of 57 trillion cubic feet (tcf) out of which 38tcf has been produced and 19.5 tcf is yet to discovered. The country has recoverable resources of oil that stands at 1.246 billion barrels but so far 0.899 billion barrels have been produced so far. In March, Exxon Mobil will send a specimen to Houston for examination. Similarly, ENI will send the specimen to Milan in March. From April to May, there will be a reasonable idea that this well contains oil or gas.

    The discovery is anticipated to yield gas flows which can be as big as Sui field, with estimated reserves of 3 to 8tcf, or 25-40 percent of Pakistan’s total gas reserves.
     
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  2. CriticalThought

    CriticalThought SENIOR MEMBER

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    I don't know how much more shameless this government and media can get. A blow of mud can be potentially a serious condition which signifies a great risk to the entire operation. It can also be a minor setback. Read here to understand more about this:

    https://www.netwasgroup.us/offshore/causes-of-blowouts.html

    From the sounds of it, this 'blow' is going to cause a lot of money. Which then leads to the question, whether this is crassness and ineptness on the part of the drilling company. When Imran Khan says:

    he is possibly conveying a very dire situation that needs the power of prayers to deal with it. Let's hope for the best in the coming days and weeks. May Allah Subhanahu Wa Ta'aala Help us and Protect us from misdeeds and evil aspirations cast against us. Aameen.
     
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  3. B52 Mixer

    B52 Mixer FULL MEMBER

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    I think the way international community is investing in oil refineries around gawadar the oil reserves are huge but kept under wrong impression for safety until ExxonMobil was involved.
    UAE Qatar Saudi Arabia and Iran have promised oil refineries in gawdar during different times.
     
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  4. ghazi52

    ghazi52 ELITE MEMBER

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    Experts reject claim of major oil, gas discovery

    Highlights
    • A top official said he did not know who was briefing the premier at this stage that a major discovery was on the cards
    • ENI, is operator of the Kekra well-1, while Exxonmobil, OGDCL and Pakistan Petroleum Limited (PPL) are the sleeping partners of the joint venture
    • Till last Saturday the well was drilled at a depth of 3,700 meters which is far away from the target of 5500 meters, says official




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    ISLAMABAD: The Petroleum Division authorities are clueless as to why Prime Minister Imran Khan time and gain announces that Pakistan is going to discover the biggest oil and gas reserves in the country’s deep sea, as drilling up to the required depth of 5,500 meters will complete by the end of April.

    The Kekra-1 well, G Block has been drilled to a depth of 3,700 meters so far. In a second interaction with the media persons on Monday, Imran again reiterated that Pakistan was going to have a massive oil and gas discovery without knowing the repercussions of his announcements on the stock exchange businesses.

    However, till Saturday last, dated January 9, the well was drilled at a depth of 3,700 meters which is far away from the target of 5500 meters.

    So it is too much early to claim a major discovery. A top official said he did not know who was briefing the premier at this stage that a major discovery was on the cards. In kekra-1 well, he said, earlier the well was drilled to a depth of 4,900 meters when a high pressure was felt causing huge mud loss and because of unsafe operation the well was plugged. Then the first side tracking started and when it reached down to 3100 meters, then it again met failure which is why the hole was also blocked and now the second side tracking is underway owing to which the well is drilled by 3,700 meter and the target of 5500 meters is still 1,800 meters away, a top relevant official told this reporter quoting the data of ENI — the lead operator of the well. ENI, an Italian company, is operator of the Kekra well-1. Exxon Mobile, OGDCL and Pakistan Petroleum Limited (PPL) are the sleeping partners of the joint venture.

    The spud drilling activities at Kekra-1 well was kicked off with $75-80 million by joint venture with 25 percent share each.

    He said there were two types of pressure kicks; one’s called the water pressure kick and the other gas pressure kick. The official said the well at the depth of 4,800 meters was plugged because of kick pressure owing to which drilling activities had to be halted on account of huge mud loss. And after pause of some days, from one side, first side tracking process initiated and when drilling reached a depth of 3100 meters it met failure and the first side tracking had also be stopped and now the second side tracking is going on owing to which the drilling has reached the depth of 3,700 meters as of today. However, when contacted Mr Irtiza Sayyed, CEO ExxonMobile, said he was travelling and it was better to ask the ENI which was lead operation of Kekra-1.

    ENI country representative Kamran Mian showed his inability to respond to any question saying under protocol he was no allowed to speak about any information on exploration activities at Kekra-1.

    Additional Secretary and spokesman for the Petroleum Division Sher Afgan, however, confirmed that when drilling reached a depth of 4,800 meters, the sudden kick pressure came up causing imbalance to the drilling structure owing to which the drilling braved the mud loss.

    The ExxonMobil had to again spud the well by 1,500 meters. He confirmed that first side tracking, which after 3100 meters depth, met failure and now the second side tracking was underway.

    GA Sabri, former special secretary Ministry of Petroleum and Natural Resources and former DG Oil, said prior to drilling the Kekra-1, the probability of discovery was 19 percent, but after two sides tracking, the probability had reduced.

    He said the target was 5,500 meters and ExxonMobil was yet to go 1800 meters deep. He said kick pressure was no sign of a major discovery. He said TOTAL had earlier spud the well in G Block and its depth target was 5,000 meter, but it abandoned the well just before 5,000 meter depth ensuring no discovery.

    Ghulam Mustafa, former OGDCL drilling engineer, said he felt that formation pressure was on the higher side whereas mud was on the lower side due to which when high pressure came out the structure got imbalanced. However, he needs the answer as to why the well is plugged, as it could have been managed. He said if the first side tracking had got initiated then why it was also plugged.

    Mustafa said now rigs with high technology were being used for ultra-deep exploration activities having the capacity to initiate side tracking from five sides. He shared his experience of exploration activities at well no. 7-A in Dhakni oilfield saying side tracking was done from four sides, but all endeavours met failure.
     
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  5. Maxpane

    Maxpane SENIOR MEMBER

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    @Khafee is there any hope or it just hype?
     
  6. Clutch

    Clutch ELITE MEMBER

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    The drillship isn't even there anymore and has moved on... It moved on almost midMarch
     
  7. American Pakistani

    American Pakistani ELITE MEMBER

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    And so gentleman, that's why you don't build a castle on thin air.:disagree:
     
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  8. Clutch

    Clutch ELITE MEMBER

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    This is old news from January ... The drillship finished the drill and has long moved on.

    The results in April and the official report from Houston fluid test data will confirm one way or another. Then it's about the field development which could take upto 5 years.
     
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  9. Maxpane

    Maxpane SENIOR MEMBER

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    oh ok sir
     
  10. ghazi52

    ghazi52 ELITE MEMBER

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    DG Petroleum Concessions Qazi Saleem said the preliminary investment of $75-80 million for drilling endeavour was usually considered in the world of oil and gas as the sunk investment assuming the well emerges as dried one. The drilling activity is always a risky business which is why investment in drilling is named as sunk investment. The DGPC disclosed about 17 wells in Pakistan’s deep sea were drilled in the past, but all endeavours failed. Highlighting the background of the drilling activities done in the past in ultra-deep sea of Pakistan, he said the first offshore well was drilled in 1963 by the US company Sun Oil but the well was found dried.

    The same Sun Oil Company in 1964 spud two wells in Pakistan’s deep sea but both also went dried. After a lapse of eight years, Winter Shall from Germany explored three wells in ultra-deep sea which later on got abandoned as nothing was discovered. He further stated that Winter Shall drilled two wells in 1972 and third one in 1975 but no oil and gas was discovered.

    He said in 1976, Marathon Oil Company from US endeavoured for drilling, but nothing was discovered. In 1978, Husky Company from Canada also spud the well, but no success was met. Then after seven years’ time, it was OGDCL that spud the well in 1985, but again no discovery was made. Likewise, in 1989, Occidental company explored the well but that too went dried.

    In 1992, Canterbury from New Zealand and in 1999-2000 Ocean company from US spud two wells but both went dried. In 2004, TOTAL — a French company — also explored one well but that was also abandoned.

    Pakistan Petroleum Limited tried in 2005 and Shell from Netherlands endeavoured in 2007 and Shark-1 went in 2010 for drilling in Pakistan’s deep sea but all went in vain. In toto, 17 serious attempts were made for wells drilling for oil and gas, but nothing was discovered.
     
  11. B52 Mixer

    B52 Mixer FULL MEMBER

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    Couple of years back I visited few sites in Pakistan controlled Arabian Sea. We went to observe some geological formations in deep sea. Methane activity was clearly observed around current drilling site. Sea basin around the area of highlight has properties that ask well maintenance over budget so it’s not sustainable unfortunately. Drilling deeper is an option but it doesn’t work always. I pray it works this time. Aamin
     
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  12. ghazi52

    ghazi52 ELITE MEMBER

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    Discussion with Dr Shakeel Ahmad about PM’s claim of discovering oil and gas reserves in Karachi
     
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  13. Umar Nazir

    Umar Nazir FULL MEMBER

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    • Rystad Energy says Kekra well in Pakistani waters has pre-drill prospective resource estimates of 1.5bn barrels of oil or equivalent
    The Eni’s Kekra well for oil and gas reserves in Pakistani waters is among three highly prospective wells in the world, international energy research agency Rystad Energy said in its report.​

    According to a private media outlet, Rystad Energy, in its report on the prospective new discoveries of energy resources, said that the Kekra well in Pakistani waters has pre-drill prospective resource estimates of 1.5 billion barrels of oil or equivalent.

    Other two prospective energy reserves reported by Rystad are the Shell-operated Peroba well off Brazil with pre-drill prospective resource estimates of 5.3 billion barrels of oil or equivalent and the Total-operated Etzil well off Mexico with pre-drill prospective resource estimates of 2.7 billion barrels of oil or equivalent.

    “If these wells prove successful, 2019’s interim discovered resources will be the largest since the downturn in 2014,” an expert said.


    In the statement, Rystad said the push for substantial new discoveries in the energy sector shows no signs of slowing down, with another 35 “high impact” exploration wells expected to be drilled this year, both onshore and offshore.

    Global discoveries of conventional resources in the first quarter reached a robust 3.2 billion barrels of oil or equivalent. Most of the gains were recorded in February, posting 2.2bbo of discovered resources.

    Majors are leading the charge in exploration, reporting more than 2.4bbo of oil equivalent of discovered resources. The six largest discoveries by the majors each exceed 150mmbbl of oil or equivalent, and the top three could even hold more than 300mmbbl of oil or equivalent apiece.

    ExxonMobil was the most successful, with three significant offshore discoveries accounting for a whopping 38 per cent of total discovered volumes. European majors Total and Eni are also in the fold with successful offshore wells in South Africa, the UK, Angola and Egypt.

    Meanwhile, Repsol’s operated Kali Berau Dalam gas find in Indonesia takes the prize for the largest onshore discovery of the quarter.
     
    Last edited: Apr 9, 2019
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  14. Foxtrot Delta

    Foxtrot Delta SENIOR MEMBER

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    انشا الّلہ ممکنہ جناب ممکنہ
     
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  15. war&peace

    war&peace ELITE MEMBER

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    انشا الّلہ
     
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