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energy reserves payback benefits
Balochistan’s indigenous energy reserves payback benefits
Pakistan needs to explore indigenous oil and gas reserves. It has been observed that gas available from the new discoveries made by foreign companies is much costly than the gas produced by the Pakistan Petroleum Limited (PPL) at Sui in Balochistan. Therefore, the exploration option will be more practical and viable in economic sense and it would also be rational to explore the indigenous energy resources than to go for import of gas from other countries.
Balochistan offers great opportunities in oil and gas exploration sector for local and foreign investors. The exploration projects can open up the province converting it into a land of opportunities for foreign investors. Oil and gas exploration in Balochistan should not be limited to Marri-Bugti tribal area but other districts — Sunny Shoran, Kharan, Zarghoon area, Chaghi, Lasbela, Bolan, Makran and coastal regions may be explored. Geological reports confirm huge reservoir of Petroleum and gas in Kalat, Kharan, Kohlu and Lasbela districts in Balochistan.
Security is the main issue related to the energy sector development in Balochistan. According to an estimate, as many as 25 blocks of oil and gas were closed and 16 blocks had been opened with the co-operation of Balochistan government during past 10 years. In January 2005, the law and order problem at Sui in Dera Bugti district had led to the countrywide gas load-shedding for many days, as the damaged gas plants at Sui were to be repaired. Millions of households faced gas shortages in the country after the main gas plant was hit during clashes between security forces and Bugti tribesmen. The government must endeavor for a political solution to the Balochistan problem. Peace is vital to launch oil and gas exploration projects in the province. Talks should be held with the Baloch leaders to expedite exploration activities in the province. A peaceful Balochistan is important to achieve energy security objective in national arena.
Last year, Balochistan announced to lift a ban on all new projects of oil and gas exploration across the province. In July 2015, former Balochistan chief minister Dr Abdul Malik Baloch had imposed a ban on new projects of oil and gas exploration in the entire province in order to press the federal government for the devolution of petroleum and natural resources in accordance with the 18th Amendment of the Constitution. Last year, the Balochistan’s former chief minister Nawab Sanaullah Khan Zehri approved agreement to give Sui Gas Field to PPL on lease for next 10 years period. Under the new agreement, Balochistan will get Rs 74 billion royalty during 10 years in connection with Rs7.50 billion annual royalty. Under the agreement, PPL would spend Rs20 billion for exploration of new reservoirs of oil and natural gas. PPL is the country’s largest exploration and production company, which has been dominating the arena of oil and gas exploration for many decades in Balochistan. It is the operator of the country’s oldest Sui gas field in Bugti tribal area. Around 23 percent of the total national output of natural gas is being exploited from Balochistan, including 18 percent from Sui gas field in Bugti tribal area. Sui is still the single largest gas field in Pakistan. At present, the Sui Gas Field produces around 800 MMscf of natural gas daily from 87 wells completed during 50 years of production. It is the pioneer gas-producing field. Drilling at Sui well No. 1 commenced on 10th October, 1951 by Burmah Oil Co. (Pakistan Concessions) Ltd. Natural gas was encountered at a depth of around 4,000 feet. However, in search of oil, drilling was continued to final depth of 10,049 feet.
Balochistan’s indigenous energy reserves payback benefits
Pakistan needs to explore indigenous oil and gas reserves. It has been observed that gas available from the new discoveries made by foreign companies is much costly than the gas produced by the Pakistan Petroleum Limited (PPL) at Sui in Balochistan. Therefore, the exploration option will be more practical and viable in economic sense and it would also be rational to explore the indigenous energy resources than to go for import of gas from other countries.
Balochistan offers great opportunities in oil and gas exploration sector for local and foreign investors. The exploration projects can open up the province converting it into a land of opportunities for foreign investors. Oil and gas exploration in Balochistan should not be limited to Marri-Bugti tribal area but other districts — Sunny Shoran, Kharan, Zarghoon area, Chaghi, Lasbela, Bolan, Makran and coastal regions may be explored. Geological reports confirm huge reservoir of Petroleum and gas in Kalat, Kharan, Kohlu and Lasbela districts in Balochistan.
Security is the main issue related to the energy sector development in Balochistan. According to an estimate, as many as 25 blocks of oil and gas were closed and 16 blocks had been opened with the co-operation of Balochistan government during past 10 years. In January 2005, the law and order problem at Sui in Dera Bugti district had led to the countrywide gas load-shedding for many days, as the damaged gas plants at Sui were to be repaired. Millions of households faced gas shortages in the country after the main gas plant was hit during clashes between security forces and Bugti tribesmen. The government must endeavor for a political solution to the Balochistan problem. Peace is vital to launch oil and gas exploration projects in the province. Talks should be held with the Baloch leaders to expedite exploration activities in the province. A peaceful Balochistan is important to achieve energy security objective in national arena.
Last year, Balochistan announced to lift a ban on all new projects of oil and gas exploration across the province. In July 2015, former Balochistan chief minister Dr Abdul Malik Baloch had imposed a ban on new projects of oil and gas exploration in the entire province in order to press the federal government for the devolution of petroleum and natural resources in accordance with the 18th Amendment of the Constitution. Last year, the Balochistan’s former chief minister Nawab Sanaullah Khan Zehri approved agreement to give Sui Gas Field to PPL on lease for next 10 years period. Under the new agreement, Balochistan will get Rs 74 billion royalty during 10 years in connection with Rs7.50 billion annual royalty. Under the agreement, PPL would spend Rs20 billion for exploration of new reservoirs of oil and natural gas. PPL is the country’s largest exploration and production company, which has been dominating the arena of oil and gas exploration for many decades in Balochistan. It is the operator of the country’s oldest Sui gas field in Bugti tribal area. Around 23 percent of the total national output of natural gas is being exploited from Balochistan, including 18 percent from Sui gas field in Bugti tribal area. Sui is still the single largest gas field in Pakistan. At present, the Sui Gas Field produces around 800 MMscf of natural gas daily from 87 wells completed during 50 years of production. It is the pioneer gas-producing field. Drilling at Sui well No. 1 commenced on 10th October, 1951 by Burmah Oil Co. (Pakistan Concessions) Ltd. Natural gas was encountered at a depth of around 4,000 feet. However, in search of oil, drilling was continued to final depth of 10,049 feet.
