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Work begins in 10 days on gas reserve that may eclipse Sui
Saad Hasan
Monday, April 18, 2011
KARACHI: The Oil and Gas Development Company Limited (OGDCL) has finally started exploration work in Dera Bugti, Balochistans most restive part, 20 years after getting the license to venture into the district, a top company official said on Sunday.
The Zin Block holds gas reserves as huge as that of Sui field, which has fuelled the country for more than 50 years, said Naeem Malik, Managing Director OGDCL, citing the reports of the companys petroleum geologists.
This is significant not just for the company but for the whole nation, he said. Pakistan needs to hit a major gas discovery soon to ease the energy crisis. We are relying a lot on Zin Block. With an investment of $10 million, OGDCL will start drilling the first exploratory well in next 20 days, he said. Two exploratory wells are planned. I am convinced we will find a lot of gas here.
The exploratory wells are followed by appraisal wells, which are used to check the size of underground gas reservoir. The first leg of the operation will be completed by July 2011.
Malik said that penetration of the OGDCL in the area was no ordinary feat. Our employees have been killed and injured. No one was ready to work in the area and now we are finally there, he added.
The state-run OGDCL will go out of its way to spend on the welfare of local tribes, he said. Initially, we will give jobs to 260 people and when we make a discovery, the company will offer more jobs. We have even decided to take upon us to educate the children, he said.
The OGDCL had built a 35-km-long road deep inside Dera Bugti to reach Zin Block. But, Malik said, the movement of the rig was not disclosed because of fears of attacks by the militants.
Miscreants have attacked the facilities of OGDCL in Balochistan more than 60 times in the last three months, killing eight workers including some Frontier Constabulary guards.
The poor law and order bogged down the exploration work at the prized Zin Block, which according to some company officials holds four trillion cubic feet (TCF) of gas, nearly 15 percent of Pakistans existing recoverable gas reserves of 27 TCF.
The countrys largest petroleum producer has engaged six platoons -- 216 soldiers each -- of the Frontier Constabulary to provide security cover. Everyone has been taken into confidence. The Army chief, the Commander South and the tribesmen, Malik said.
The OGDCL had been trying to start drilling in Zin for the last couple of years, but security forces had advised against it. The killing of Akbar Bugti by security forces in 2006 made it all the more difficult for the company to venture into the region.
The largest province in terms of size, Balochistan remains the least explored area, despite having Sui gas field, which has been fuelling the economy for the last 55 years. The OGDCL has already produced fields there, including Uch and Loti.
The country desperately needs a major discovery of reserves of gas, which meets more than 48 percent of its energy needs. Most of the big fields are depleting fast leading to closure of factories and CNG stations too often now.
Three gas import projects including Iran-Pakistan pipeline, the pipeline from Turkmenistan and the LNG terminal, are all in their nascent stages. According to some estimates, demand for gas surpassed supply by 25 percent.
* probably the biggest thing for Pakistan right now is hopefully finding a lot of gas in this new well
