ISLAMABAD - State owned Oil and Gas Development Company Limited (OGDCL) has made gas discovery at Zin block in Balochistan and estimates of the reserve size, quality and daily supply are being finalised.
An official source said gas pressure was assessed at 1000 pound square inch (psi) which indicates a big reservoir. However, he shared no information on the size of the reservoir, its quality and potential daily gas supplies, and said “the technical team is the process of evaluating all of these things”.
National flag carrier, OGDCL started exploratory drilling in the block located in Dera Bugti district and first well X-1 was spud in May this year. The company had obtained exploration license for Zin block in 1996. But due to law and order issues, it could not be drilled for last 14 years.
In industry circles, Zin block is considered a very prospective block as it is surrounded by major natural gas producing fields of Pirkoh, Loti, Sui and Uch. Work on the site was started in 2010, when government provided required security to the company. If drilling proves successful the gas from the field will start flowing within next one year, the source said.
A major discovery in the block will make government enhance security for companies interested in oil and gas exploration in the hydrocarbon rich province to overcome severe energy crisis due to estimated 2 bcfd shortfall in gas supply.
The country’s first major discovery of Sui gas field located in Dera Bugti was made in 1952. Its neighbouring district of Kohlu is attributed by experts as the most prospective area for finding major conventional hydrocarbon reserves. OGDCL has applied for security clearance for four licenses in the district including Kohlu, Jandran, Jandran West and Kalchas.
OGDCL is the largest upstream company in the country having a portfolio of 77 fields, out of which 45 fields are 100 per cent owned and operated, and 32 are non-operated fields. As of December 2010, it holds 48 per cent of the country’s recoverable oil reserves, and 37 per cent of the country’s recoverable gas reserves. In terms of production, currently OGDCL delivers 56 per cent of Pakistan’s oil output, and 22 per cent of its gas production.