Pakistan's vast Shale Oil & Gas Reserves | Updates & Discussions

[UKBengali]

@Argus Panoptes

At current rate of oil consumption, how much forex we can save bu utilizing these deposits?

Last year Pakistan spent around 15 billion dollars importing oil products.

It would make a massive difference to Pakistan's economy if this money was saved and spent on paying off debt and invested in infrastructure, education and health.

25 years of the right people managing this resource and Pakistan would be a completely different country.

 

[RiazHaq]

problem is who is going to invest in shale gas...PPL,OGDCL dont have technology and neither resources..
shale gas is less attrative because of lesser return..until now the return promised was very low, not anymore but law and order situation isnt bright..

shale gas can only be available if OGDCL/PPL do a joint venture with foreign firms problem is that they are already cash stripped because the govt owns them!..the circular debt has made it even worse

Americans and Saudis oppose Iran-Pakistan gas pipeline. Pakistan should negotiate with them to see what alternative they offer.

Pakistan's best interest is not in defying Saudis and Americans to buy expensive Iranian gas and end up with crippling sanctions which could be much worse than its current energy crisis.

Pakistan's best interests will be served by developing its own cheap domestic shale gas on an accelerated schedule with Saudi investment and US tech know-how. If the Americans and the Saudis refuse to help, then Pakistan will have a stronger case to go with the Iran gas option.

http://www.riazhaq.com/2012/04/pakistans-shale-gas-with-us-ksa-help.html

 

[RiazHaq]

Here's a report on an on-shore discovery by Pakistan Petroleum (PPL) in Sindh province:

Karachi’s Pakistan Petroleum has reported flow test success from a deeper reservoir at its Adam X-1 gas and condensate find onshore Pakistan.
The state player said that it had evaluated the potential of lower basal sands at a depth of 3450 metres at the Block 2568-13 probe over the past two months.

The Sanghar district, Sindh province well is to be put into production immediately after flowing 14.3 million cubic feet per day of gas and 125 barrels per day of condensate, the explorer said.

Pakistan Petroleum operates the licence on a 65% working interest with compatriot Mari Petroleum on 35%.

Pakistan Petroleum sees deeper Adam flows -Upstreamonline.com

 

[niaz]

Here's a report on an off-shore discovery by Pakistan Petroleum (PPL) in Sindh province:

Karachi’s Pakistan Petroleum has reported flow test success from a deeper reservoir at its Adam X-1 gas and condensate find onshore Pakistan.
The state player said that it had evaluated the potential of lower basal sands at a depth of 3450 metres at the Block 2568-13 probe over the past two months.

The Sanghar district, Sindh province well is to be put into production immediately after flowing 14.3 million cubic feet per day of gas and 125 barrels per day of condensate, the explorer said.

Pakistan Petroleum operates the licence on a 65% working interest with compatriot Mari Petroleum on 35%.

Pakistan Petroleum sees deeper Adam flows -Upstreamonline.com

Hon Sir,

Hala/Adam gas field is small an 'onshore field'. It is bang in the centre of Sind province. To the best of my info the proven reserves are about 20-billion cft gas & 1-million barrels condensate.

For the record; drilling of Adam X-1 well started in 2007 and the field has been in production since 2009. The news clearly mentions district Sanghar. I happen to visit Sanghar city many times way back in the early 1970's when I was Sales Development Manager for Esso before its name was changed to PSO. Sanghar city (main town of Sanghar district) is about 40 miles north of Mirpurkhas and nowhere near the sea shore.

How did you manage to turn into an ‘Off-shore' discovery?

 

[Argus Panoptes]

Here's a report on an off-shore discovery by Pakistan Petroleum (PPL) in Sindh province:

Karachi’s Pakistan Petroleum has reported flow test success from a deeper reservoir at its Adam X-1 gas and condensate find onshore Pakistan.
The state player said that it had evaluated the potential of lower basal sands at a depth of 3450 metres at the Block 2568-13 probe over the past two months.

The Sanghar district, Sindh province well is to be put into production immediately after flowing 14.3 million cubic feet per day of gas and 125 barrels per day of condensate, the explorer said.

Pakistan Petroleum operates the licence on a 65% working interest with compatriot Mari Petroleum on 35%.

Pakistan Petroleum sees deeper Adam flows -Upstreamonline.com

Hon Sir,

Hala/Adam gas field is small an 'onshore field'. It is bang in the centre of Sind province. To the best of my info the proven reserves are about 20-billion cft gas & 1-million barrels condensate.

For the record; drilling of Adam X-1 well started in 2007 and the field has been in production since 2009. The news clearly mentions district Sanghar. I happen to visit Sanghar city many times way back in the early 1970's when I was Sales Development Manager for Esso before its name was changed to PSO. Sanghar city (main town of Sanghar district) is about 40 miles north of Mirpurkhas and nowhere near the sea shore.

How did you manage to turn into an ‘Off-shore' discovery?

The report clearly states that the well is in Sanghar, but perhaps was placed off-shore due to our national trait of "josh-e-khitabat" caused in this case by extreme excitement induced by such discoveries.

Can threads claiming oceans of oil under our off-shore areas be far behind to support our vast shale oil and gas and Thar coal and Reko Diq copper and gold and gem resources?

 

[RiazHaq]

Hon Sir,

Hala/Adam gas field is small an 'onshore field'. It is bang in the centre of Sind province. To the best of my info the proven reserves are about 20-billion cft gas & 1-million barrels condensate.

For the record; drilling of Adam X-1 well started in 2007 and the field has been in production since 2009. The news clearly mentions district Sanghar. I happen to visit Sanghar city many times way back in the early 1970's when I was Sales Development Manager for Esso before its name was changed to PSO. Sanghar city (main town of Sanghar district) is about 40 miles north of Mirpurkhas and nowhere near the sea shore.

How did you manage to turn into an ‘Off-shore' discovery?

Thanks for pointing out the error.

The intro line is a typo on my part which I just corrected.

The story itself clearly indicates it's on-shore. "Karachi’s Pakistan Petroleum has reported flow test success from a deeper reservoir at its Adam X-1 gas and condensate find onshore Pakistan."

Pakistan Petroleum sees deeper Adam flows -Upstreamonline.com

To geologists, it matters little whether it's onshore or off. The difference is important only to the companies drilling for resources because they need different equipment and technology for onshore vs offshore.

BTW, PPL does have substantial off-shore operations in Arabian Sea.

In the distant past, it's believed by geologists that parts of lower Indus basin were underwater as evident from the marine deposits which make up the large shale formations of Ranikot in Sindh. In fact, there are on-ground reefs in Sindh which support this theory.

 

[niaz]

Thanks for pointing out the error.

The intro line is a typo on my part which I just corrected.

The story itself clearly indicates it's on-shore. "Karachi’s Pakistan Petroleum has reported flow test success from a deeper reservoir at its Adam X-1 gas and condensate find onshore Pakistan."

Pakistan Petroleum sees deeper Adam flows -Upstreamonline.com

To geologists, it matters little whether it's onshore or off. The difference is important only to the companies drilling for resources because they need different equipment and technology for onshore vs offshore.

BTW, PPL does have substantial off-shore operations in Arabian Sea.

In the distant past, it's believed by geologists that parts of lower Indus basin were underwater as evident from the marine deposits which make up the large shale formations of Ranikot in Sindh. In fact, there are on-ground reefs in Sindh which support this theory.

Agreed that large parts of Pakistan are 'sedimentary basins' and likely to have hydrocarbon deposits. However having sedimentary basin does not guarantee hydrocarbon. Pakistan does have gas as well as oil but in ‘Fractured’ formations which have small ‘Pay zones’.

People in the oil industry have been aware of the offshore exploration activity in the Makran and Indus basin areas since the 60’s. I know of the OGDC’s offshore drilling activity in the late 80’. Offshore drilling was also done by Wintershell & Occidental. Thus far all the wells have been failures, meaning either no oil/gas deposits were found or if found were tiny and not considered commercially viable.

There is little doubt that there are shale/tight gas deposits in Pakistan. However all estimates are only ‘Guess work’. We wouldn’t know for sure until such time we start drilling for the same. During my early days in the oil industry, experts were of the opinion that Pakistan was sitting on 50-billion barrels of all and there was a rush of exploration activity but actual oil reserves discovered in the last 50 years do not add up to even 1-billion barrels.

Million dollar question is:

1. Do Pakistan gov’t or Pakistan companies have the technology and funds to commit to a fracking venture?
2. Are there any foreign company willing to commit huge funds in Pakistan to develop these resources?

Answer to the first question is a big ‘NO’. GOP has neither the funds nor horizontal technology expertise to undertake such a project.

Given the precarious law & order situation in Pakistan where TTP/Lej loving sections of Pakistan polity ensure that even the life of harmless cricketers and mountaineers is not safe; few foreign companies are willing to invest in Pakistan.

Who cares about 18 hours load shedding; all those TTP & Lej murderers will be rewarded with 72 houris in the afterlife.

 

[muse]

Million dollar question is:

1. Do Pakistan gov’t or Pakistan companies have the technology and funds to commit to a fracking venture?
2. Are there any foreign company willing to commit huge funds in Pakistan to develop these resources?

Answer to the first question is a big ‘NO’. GOP has neither the funds nor horizontal technology expertise to undertake such a project.

Given the precarious law & order situation in Pakistan where TTP/Lej loving sections of Pakistan polity ensure that even the life of harmless cricketers and mountaineers is not safe; few foreign companies are willing to invest in Pakistan.

Who cares about 18 hours load shedding; all those TTP & Lej murderers will be rewarded with 72 houris in the afterlife.

I think it really is time that we recognize that Govt is not solution to all problems -- the world is awash in private money looking for safe homes that offer the opportunity for significant returns

 

[Argus Panoptes]

I think it really is time that we recognize that Govt is not solution to all problems -- the world is awash in private money looking for safe homes that offer the opportunity for significant returns

Yes, but will that private money agree to the necessary kickbacks and percentages to be allowed to embark and then maintain on such ventures in Pakistan? How safe would that investment be when a stroke of a whimsical pen can take it all away without any recourse?

 

[muse]

Yes, but will that private money agree to the necessary kickbacks and percentages to be allowed to embark and then maintain on such ventures in Pakistan? How safe would that investment be when a stroke of a whimsical pen can take it all away without any recourse?

It is unfortunate that Pakistani bureaucracy and political elite continue to ignore not only the interests of Pakistan but their own larger interests. Some people say that it's the people to blame for not caring, this is misplaced, people elect deputies and bureaucracies exist to further the trust placed in them to further the best interests of peoples.

 

[Argus Panoptes]

It is unfortunate that Pakistani bureaucracy and political elite continue to ignore not only the interests of Pakistan but their own larger interests. Some people say that it's the people to blame for not caring, this is misplaced, people elect deputies and bureaucracies exist to further the trust placed in them to further the best interests of peoples.

Yes Sir, and that is why all the claimed vastness of our resources comes to naught.

 

[RiazHaq]

Million dollar question is:

1. Do Pakistan gov’t or Pakistan companies have the technology and funds to commit to a fracking venture?
2. Are there any foreign company willing to commit huge funds in Pakistan to develop these resources?

Answer to the first question is a big ‘NO’. GOP has neither the funds nor horizontal technology expertise to undertake such a project.

Given the precarious law & order situation in Pakistan where TTP/Lej loving sections of Pakistan polity ensure that even the life of harmless cricketers and mountaineers is not safe; few foreign companies are willing to invest in Pakistan.

Who cares about 18 hours load shedding; all those TTP & Lej murderers will be rewarded with 72 houris in the afterlife.

The history of the global energy industry tells us that with the right licensing terms and suitable security and political environment, oil and gas drilling can attract a lot of foreign technology and investments with lucrative returns. That's what Pak leadership should work on and money and tech will follow.

 

[RiazHaq]

Here's a News report on rising oil production and declining gas production in Pakistan:

KARACHI: Pakistan’s oil production in the fiscal year ended June 30, 2013 saw sharpest growth in 22 years of 14 percent. However, gas production decreased by almost three percent.

“The country’s FY13 oil production grew by 14 percent to average 76,000 barrels per day, which is well above historical 10-year oil production at cumulative average growth rate of one percent,” Atif Zafar at JS Global said. “But, the same was largely overshadowed by gas shortages in the country since gas production shrank by three percent to 4,100 million metric cubic feet per day (mmcfd).”

The decline is the rampant since 1987 mainly owing to natural depletion of existing fields.Pakistan’s proven recoverable oil and gas reserves stand enough only for 13 and 18 years, respectively, he said. However, analysts expect upgrade of reserves in the upcoming reserve appraisal.

The Oil and Gas Development Company (OGDC) recorded the highest production gains – based on barrels of oil equivalent – (up by three percent), whereas production of Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) fell four percent and nine percent, respectively.

Based on provisional numbers for the last quarter of the fiscal year, the country’s oil production is up by only one percent, while gas production decreased by seven percent.

During the quarter, oil production of POL increased by 13 percent and gas by three percent, while OGDC’s oil production went up by two percent and gas by nine percent. Additionally, PPL’s oil production scaled up by four percent, while gas output was down by nine percent in the last quarter.

“We expect further improvement in oil production by an estimated 11 percent in the current fiscal year. However, additional gas production will largely be offset by natural depletion,” Zafar said.

Oil production at 22-year high - thenews.com.pk

 

[Argus Panoptes]

The history of the global energy industry tells us that with the right licensing terms and suitable security and political environment, oil and gas drilling can attract a lot of foreign technology and investments with lucrative returns. That's what Pak leadership should work on and money and tech will follow.

With present day conditions in Pakistan, NONE of these requisites are available. Hence foreign technology and investments will stay away.

 

[RiazHaq]

With present day conditions in Pakistan, NONE of these requisites are available. Hence foreign technology and investments will stay away.

There are now several foreign companies prospecting for oil and gas in Pakistan in spite of current problems. Any improvement in security situation will only bring in more of them.