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New oil reserves discovered in Sindh

cb4

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Karachi- New oil reserves have been discovered at Tando Allah Yar in Sindh province.
Oil and Gas Development Corporation Limited (OGDCL) discovered oil from Jarwar well number one in NIM Block. The discovery will add to the hydrocarbon reserves base of the country. This is the second OGDCL oil discovery within the short span of two months as the previous one was discovered in district Attock in September.

New oil reserves discovered in Sindh
 

niaz

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It is indeed very little, at $30 per bbl such a small well would not be economic. However at $80 per bbl it is commercially viable. Details are very sketchy, from what I read about, it appears to be a gas rich oil field or condensate rich gas field. In any case, it is better than a dry well.

Most Pakistani oil bearing structures are small and any well producing in excess of 1000 bbls per day is considered good. Let us hope we find another 50 such structures.
 

enquencher

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These reserves don't seem commercially viable...Coz it is costly to extract .process and maintain those wells
 

niaz

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These reserves don't seem commercially viable...Coz it is costly to extract .process and maintain those wells

Hon sir,

I did mention in my earlier post that at $30 per bbl. oil, this field would be uneconomic. Not so at current prices. Here is an excerpt from US Energy Information Administration.

Quote

Costs for Producing Crude Oil and Natural Gas, 20072009
2009 Dollars per Barrel of Oil Equivalent

Lifting Costs Finding Costs Total Upstream Costs
United States
Average $12.18 $21.58 $33.76
On-shore $12.73 $18.65 $31.38
Off-shore $10.09 $41.51 $51.60

All Other Countries Average $9.95 $15.13 $25.08
Canada $12.69 $12.07 $24.76
Africa $10.31 $35.01 $45.32
Middle East $9.89 $6.99 $16.88
Central & South America $6.21 $20.43 $26.64

Unquote

Recently I came across an article about the declining production in the conventional oil fields. Understand Bakken field in North Dakota (discovered in 1951) mean oil production per working oil well is down to 400 bbl/day. The filed in question may be small but it is viable at current oil price levels.
 

VCheng

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Recently I came across an article about the declining production in the conventional oil fields. Understand Bakken field in North Dakota (discovered in 1951) mean oil production per working oil well is down to 400 bbl/day. The filed in question may be small but it is viable at current oil price levels.
Sir, a field may be viable at low production levels only if it has previously delivered much larger volumes to justify developing it in the first place. As productivity tapers off, the existing machinery is enough to keep it viable without additional development. Trying to initially develop a well with a peak output of 400 bbl per day may be a nonviable scenario.
 

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