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Oil discoveries.

Oil Discoveries

Kandanwari Gasfield

The gas field has been discovered by the joint efforts of Lasmo Oil Pakistan Limited (Lasmo), Oil & Gas Development Corporation (OGDC), Kuwait Foreign Petroleum Exploration Corporation (Kufpec) and Idemitsu Oil Development Company (Idemitsu). Kandanwari is the first exploratory well drilled by the joint venture group in Tajjal block. The Tajjal concession was granted in July 1987 covering an area of 5,000 square kms in Khairpur, Sukkur and Nawabshah.

Oil at Pasahki in Sindh

The Oil and Gas Development Corporation has struck oil at Pasahki, 16 kilometres from Hyderabad, yielding 2,600 barrels of oil per day. Being close to the road, the discovery could be pumped into the oil mainstream within two months.


Oil and Gas Development Corporation has made another oil discovery during the current month at Fimkasar, about 80 kilometres south of Islamabad in District Chakwal, bringing the total production of the country upto 60,000 barrels a day. The discovery was 100 per cent owned by OGDC.

There is a good potential of oil at Fimkasar, some six to seven more wells would be drilled at this site which was abandoned by the famous US-based Gulf Oil Company in 1980-81 to the total depth of 3,485 metres. The company wound up its operation in Pakistan and assigned the area to OGDC. "The Gulf Oil Company found the Chotgali Sakesar formation too tight for a commercial discovery. The oil was of good quality and had a gravity of about 40 degrees api. It could be refined in the nearby Attock Oil Refinery located at Rawalpindi. Because of low amount of gas the well could be put on extended production testing soon after completion as flaring one million cubic feet of gas did not present a serious problem.

Bhangali near Rawalpindi

The Occidental of Pakistan and the OGDC joint venture has struck oil in commercial quantity in Bhangali in Rawalpindi District, 35 miles south of the federal capital. The preliminary reports indicated oil flow at the rate of 3,000 barrels per day. Tests also revealed availability of over four million cubic feet of gas per day along with oil.

The relatively low gas, oil ratio (GOR) of 1,341 to one indicated that the discovery was of primarily oil reservoirs. The oil discovered had the gravity of 32 API, considered to be good quality light oil, which was most suitable for refineries, according to laboratory result tests. The experts said that the oil jet was gushing out at a pressure of 3,920 pounds per square inch which reflected that the actual output from the well could be much more than preliminary estimates. The size of the structure was also large and was comparable with that of Dhurnal capable of holding large quantities of oil. In view of the large size of the structure, the daily oil production from Bhangali may actually be much more depending upon the number of wells. At present only one well has been sunk. OGDC is the major shareholder in Bhangali prospecting area holding 50 per cent share in the event of commercial discovery. Other shareholders are occidental 40 per cent, Pakistan oil fields seven per cent and Attock Oils 3 per cent. Drilling operations have, however, been entrusted to Occidental, who are also the operators of the oil field. Further tests are continuing to determine the exact size of reservoir and daily output.

Bhai Syeden

A new oil and gas field has been discovered at Bhal Syedan located 52 kilometers southwest of Islamabad and six kilometers west of Fatehjang in Attock district. The new field would produce 1,000 barrels per day, after coming into production, within a period of 10 to 11 months. The structure of the new well is fairly large in size and estimation of reserve will be done after testing all the zones in this well and drilling some appraisal wells. The proximity of the existing gas transmission line will facilitate early development of the field and save the cost of development.

Oil Discovery at Daru

A new oil and gas discovery has been made by Oil and Gas Development Corporation at Daru, in Hyderabad District, from where a production of 430 barrels of condensate and 8.8 million cubic feet of gas per day is being achieved. Two oil fields have been further developed from where a total production of 3,542 barrels of oil and 4.25 million cubic feet of gas is expected to be achieved shortly. The two oil fields which have been further developed are Thora (the new expansion to be called as Thora East) and Kunar (the new expansion to be called as Kunar 1-A).

Daru field is located about 22 kilometres, south-east of Hyderabad town and falls in Sanghar concession of OGDC. The sub-surface structure of this field is spread over an area of about 8.5 square kilometres and the seismic surveys were carried out during 1987-88. Daru well No. 1 was spudded in on October 12, 1988, and after completion of drilling to the target depth of 2563 metres, and production testing was started on January 1, 1989.

The expansion of Thora oilfield has been completed and during testing on half-finch choke, the output of condensate was recorded as 2,160 barrels per day. Similarly, from Kunar 1-A, 1,382 barrels of condensate and 4.25 million cubic feet of gas per day will be produced.

Oil Discovery at Badin

Considerable reserves of high quality oil have been discovered by the Union Texas Pakistan north of Acri in Badin district. The discovery was recently made by the UTP after drilling at a depth of approximately 6000 feet in Badin Block while total reserves at Acri are being assessed by the geologists of the UTP. The experts were confident that the daily average production would be 4000 barrels per day. The experts believe that the gravity ratio of the North Acri oil would be 40 to 50, which is termed the standard of quality oil throughout the world.

According to UTP sources, less difficulty was experienced during the drilling process as the North Acri field was more shallow. The find was made after drilling three wells in the North Acri. Of the three wells, two have been declared as successful by the UTP experts. The UTP had recently discovered two oil and gas wells in the Bhatti area.

In Bhatti, the UTP will be able to produce at least 15 to 20 MMCF of gas and 1500 barrels of oil per day. With the beginning of the oil production from the North Acri on commercial basis, the total production of oil from Badin block by Union Texas would jump to over 24,000 barrels per day. The major fields in Badin block, from where the UTP is producing oil, include Mazari, South Mazari, Dhabi and Khaskheli.

After meeting the requirements of the local refineries, the remaining portion of the Badin crude is exported to Singapore for refining purposes. The export quantity is 150,000 barrels (20,000 metric tons) per month which was doubled for ten weeks during December 1989 to January 1990 due to the closure of the National Refinery for expansion purposes. Gas production by the Union Texas from the Badin block's Turk, Golarchi and Matli fields is over 100 MMCFD. The Union Texas is awaiting the inauguration of the Liquid Handling Facility (LHF) of the Sui Southern Gas (SSGC) at Hyderabad. With the formal opening of the LHF at Hyderabad, the pumping of Badin gas by the UTP will also increase to a great extent.

The oil production from the Badin will also be increased with the commissioning of the proposed Badin refinery. Oil industry experts believe that the process of gas and oil discoveries will continue in the Badin block till the year 2000. That's why the government had decided to set up the refinery at Badin, an expert of oil and gas said. The production of oil in the country now stands approximately at 70,000 barrels per day which is 45 per cent of total requirement of the country. The major share of the local production is being contributed by the Sindh province which amounts for over 30,000 barrels per day.

Discovery at Dhamrakhi

This discovery of oil and gas reserve has been made at Dhamrakhi well No. 1, 15 KM south of Sanghar in the province of Sindh. This first discovery made during the current financial year is, 5 km north of oil and gas field at Bobi. The well at Dhamrakhi was drilled by the OGDC to the depth of 2915 meters in 55 days, started on October 21, 1990. A drill stem test was conducted at the location on 29-30 December, 1990 for the zone from 2482 to 2500 meters. The flow rate stabilised at 1250 barrels of oil and 4.2 million cubic feet of gas per day at half inch choke with a flowing well head pressure of 1980 PSI.

The oil is light and volatile and is of 55 API gravity. The gas-oil ratio is about 3300. Both the oil and gas are of good quality and will present no problem in processing. There are two more potential zones in this well which are being tested. The availability of oil and gas bearing in these zones, will considerably increase the reserves. Dhamrakhi has become the northern most discovery of oil in the Lower Indus Basin and thus it extended the prosperity of the area.

The production economics from Dhamrakhi field would be improved by developing it jointly with the Bobi field. The size of the reserves in this field would be determined after drilling one or two additional wells.

According to reports the Oil and Gas Development Corporation of Pakistan was currently drilling more exploratory wells at Misa Kaswal and Turkwal in Punjab and at Nur in Sindh.

$ 90 m. IBRD Loan For Energy Project

The World Bank will provide to Pakistan a loan of $ 90 million for Domestic Energy Development Project to be utilized by the Oil and Gas Development Corporation (OGDC).

It is expected that the Bank would provide, in addition to $90 million another $ 50 million in the form of co-financing.

The Government of Pakistan will share $20 million in the project that is expected to cost around $160 million.

The project would provide for the development of Dhodak gas fields through the drilling of two development wells, installation of an LPG plant, construction of a gas pipeline from Dhodak to Kot Addu to supply additional gas as substitute for fuel oil to the power plant and construction of storage facilities for condensate at Dhodak.

The project will also support exploration/appraisal activities in nine ongoing joint ventures for which Government of Pakistan and OGDC have continuing contractual commitments and also for new joint ventures for which OGDC would enter with qualified oil companies in Potohar lower Indus Sanghar and other prospective areas.

The Bank would also provide technical assistance to strengthen the Directorate General of Petroleum Concessions (OGPC) and the hydro-carbon Development Institute of Pakistan.

According to the sources, the proposed project is an integral part of the Seventh Plant's core programme of priority projects whose composition and financial requirements would be agreed to and reviewed annually under the Second Energy Sector Loan (ESL II). [Tabular Data Omitted]

PHOTO : A View of Meyal Gas Complex.

PHOTO : Oil Exploration Unit of Pakistan Oil Fields.
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Publication:Economic Review
Date:Feb 1, 1991
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