Poly-GCL Petroleum Group of China has agreed with Ocean Pakistan Limited (OPL) to invest $500 million in exploration of oil/gas sector of Pakistan. The two companies reached an agreement during a recent visit of a seven-member delegation of Poly-GCL Petroleum Group delegation led by Chairman, Barton Yu.
An official of the company told Business Recorder here on Tuesday that the Chinese company would collaborate with the OPL in enhancing oil/gas production from depleting fields such as Zamama field which was once producing over 500 Million Cubic Feet per Day (mmcfd) but now its production is 150 mmcfd. According to officials, the Zamzama Block in Sindh province has potential recoverable gas reservoirs of 300 Billion Cubic Feet (BCF) and recovery of these reservoirs will save billions of dollars for the national kitty over the years.
The company is fully prepared to take immediate steps to arrest fast declining gas production from the Zamzama Gas Field as soon as NOC by the Ministry of Petroleum is issued. OPL was at an advanced stage of concluding a strategic association with Poly-GCL Group of China for investment in upstream and downstream oil/gas sector inside the country as well as outside Pakistan, the official added. OPL has chalked out an ambitious plan for rehabilitation of its mature fields in Pakistan which it plans to present to its Joint Venture Partners, OGDCL, POL and AOC. In aggregate, draft plans envisage investment of over $60 million in well intervention, workovers and new production systems to increase oil and gas production to about 5,000 barrels of oil and about 50 mmcfd of gas from Dhurnal, Ratana and Bhangali.
Besides, Joint Venture Partners have embarked upon state of the art three dimensional seismic acquisition of the entire field which carries great upside potential. Tri Resources Investments Inc (Hashoo Group Company) has also executed a Sales Purchase Agreement (SPA) for acquisition of entire shareholding of British E&P Company BHP. The company is waiting for the final No Objection Certificate (NOC) from the Petroleum Ministry.
OPL has increased natural gas/crude oil production from Ratana and Dhurnal oil/gas fields by 20 mmcfd of gas and 500 barrels per day (BPD) of oil. The gas being produced from the filed is being sold at 0.25 cents to the Sui-Northern Gas Company. OPL in the month of July 2015 has rejuvenated Dhurnal Oil Field through workover in one of the oldest wells which resulted in additional oil production of about 500 BOPD and 1.5 mmcfd of gas. This unprecedented success has restored the confidence of scientists to try new technologies in other Dhurnal wells which are likely to produce a total of over 1,500 barrels of oil and about 5 mmcfd after similar workovers in other wells by turn of calendar.
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