Total 26 exploratory and 42 development wells are expected to be drilled expecting to attract $800 million in the country during FY04, according to a reliable report.
Out of these, OGDC plans to drill 13 exploratory and 9 development wells. Until November end 2003, a total of 9 exploratory and 9 development wells have been spud. OGDC has spud 3 exploratory and 3 development wells during this period.
The domestic oil and gas exploration and production (E&P) sector witnessed unprecedented level of activity last year, attracting a record investment of $960 million.
The recently discovered gas fields, such as Sawan, Bhit & Zamzamah, have proved future potential of the sector in Pakistan, helped increase investment, creating jobs and promoted other industrial activity.
During FY03, a total of 77 wells were drilled in the country. Out of these, 32 were exploratory and 45 were development wells. Six discoveries were made till Jun 30, 2003. This means success of one well for every 5.2 wells drilled (based on exploratory wells drilled). The success ratio was lower compared to historical average of one well for every 3.7 wells drilled.
However, in case the discoveries made till now are counted (for wells spud in FY03), the total discoveries will increase from 6 to 9 and the success ratio improves to one well for every 3.6 wells drilled. This is in line with the average historical success ratio.
During FY03, a total of 9 oil & gas discoveries were made in Pakistan. OGDC discovered oil & gas at 5 places followed by OPI with 2 discoveries. Besides these, one discovery each was made by BP & PPL. During the year, OPI made 2 successful discoveries in Khipro block. The first discovery was at Naimat Basal, followed by a discovery at Siraj South.
OGDC made 2 discoveries at Norai Jagir & Bhulan Shah in Nim Block. Also, the company made 2 discoveries at Hakeem Daho & Chak-7A in Sinjoro Block and one discovery at Dars in Tando Allah Yar Block.
Out of 32 exploratory wells drilled during FY03, 15 wells were drilled by OGDC. This is the highest number of wells drilled in a year by OGDC in the last decade. OGDC was, however, not at the top in drilling of development wells category. Out of 45 development wells drilled only 2 wells were drilled by OGDC. This was due to lack of significant discovery by the company in the recent past.
However, keeping in view the discoveries in Chanda, Nim and Sinjhoro blocks during the last 2 years and the future expansion plans in existing fields, higher participation by the company is expected in development wells.
OGDC plans to carry out significant expansion in 5 fields out of which 3 are expected to be completed during 2003-2004.