PPL launches 10-year oil and gas exploration plan

Pakistan Petroleum Limited (PPL), the country's largest producer of natural gas, has launched a major 10-year oil and gas exploration plan to enhance reserves and optimise hydrocarbon production through application of modern technology. The PPL, which plans to dig 100 exploration-wells over the next 10 years, accounts for around 30 percent of the country's total natural gas production. It is now exploring 15 blocks from NWFP to Punjab, Sindh, and Balochistan down to Arabian Sea. A total of 22 Pakistani and foreign companies are engaged in oil, gas exploration in the country.
PPL Chief Executive and Managing Director S Munsif Raza told PPI in an interview here on Thursday that the company's exploration strategy was aimed at not just replenishing but enhancing its existing petroleum reserves.
"It is first Pakistani company to drill offshore oil and gas exploration well Pasni X-2, about 58km south west of Pasni in Balochistan. "It is considered to be very promising. We will know results in May 2005," he said.
He felt oil and gas discovery at Pasni X-2 would encourage further offshore exploration activity in Pakistani waters and could kick-start industrial development of Pasni/Gwadar.
Makran basin where Pasni-2 well is located is one of the relatively under-explored basins in the world, containing numerous geological structures, thick potential reservoir and source rocks. There are several known gas seepage and mud volcanoes along Makran coast.
Pakistan's basins are known to be hydrocarbon-rich. According to an estimate there is potential of 200 trillion cubic feet of gas and 40 billion barrels of oil across four provinces.
Munsif Raza said that Pakistan needed to speed up discovery by providing environment and security to exploration companies. Demand-supply of gas now was break-even.
Gas exploration had barely kept pace with demand, which was going up. If 1000-1500 mmcfd gas was produced in next five years it could be absorbed as present transmission and distribution system could be expanded to handle it.
He said local oil production only met 15percent requirement, while rest was imported as crude or finished products. The government's policy was good, terms very competitive and fiscal regime attractive. However, new companies were not coming, as there was slow movement in certain areas and security problem. "The decisions have to be taken quickly and red tapism be cut down," he said.
He said oil and gas discovery would be the engine for continued economic growth in the country. The exploration activity was much slower in terms of prospectively. "We have good sites and success ratio is good. Pakistan has lot of potential for discoveries and is attracting upstream investment".
He said gas equivalent to five hundred thousands barrels of oil was being currently produced daily in Pakistan. He said all new major gas discoveries in recent years were in Sindh, which were now producing 65percent gas in the country.