The Bolan Exploration Licence was awarded on 30th November 1994 by the Government of Pakistan. With 35% share holdings in the Bolan Block, in which the Zarghun Gas Filed is located, Mari Gas Company Limited is the operator.
The other Joint Venture partners include Spud Energy Private Limited {40%}, Government Holdings Private Limited {17.5%} and Premier-KUFPEC Pakistan Exploration Limited {7.5%}. The field is located 57 kilometres north east of Quetta, in Tehsil Harnai of Sibi District.
The Geological and Geophysical activities started in 1996. The subsequent data acquisition and processing/interpretation established a lead and presence of Zarghun South subsurface anticline.
The First exploratory well Zarghun South-1 was planned on the structure and drilling commenced on 4th June 1998. The well reached its target depth of 2094 meters on 8th August 1998. The testing revealed gas in Dunghan Moro/Mughal Kot and Chiltan reservoirs and flowed gas at a maximum rate of 16.7 MMSCF per day. The second well Zarghun South-2 was also drilled successfully in 2000.
As of today, gas in place is estimated to the tune of 132 BCF with recoverable gas reserves of 92.6 BCF. These reserves, at anticipated production profile are likely to last about 15 years. It is worth mentioning that this is the only field in Balochistan from where the gas shall be produced and consumed with in the same province.
The Bolan Joint Venture has entered into Gas Sales & Purchase Agreement with Sui Southern Gas Company Limited on 28th August 2006, according to which the Joint Venture will supply 20-22 MMSCFD of pipeline quality gas to Sui Southern Gas Company Limited at the field gate. To attain the pipeline quality gas as per criteria of Sui Southern Gas Company Limited, the Joint Venture will install gas purification plant to remove the inert carbon dioxide and hydrogen sulphide, in addition to dehydration facilities to remove water contents from the stream.
To achieve the desired daily production, Bolan Joint Venture shall also drill one additional well, Zarghun South-3 and carryout work over at Zarghun South-2. For the purpose of drilling, production and processing facilities, Bolan Joint Venture shall spend US $47 million. This cost is in addition to US $53 million which it has already incurred during the exploration phase. This totals up to roughly Rupees six billion.
Sui Southern Gas Company Limited will construct a 65 kilometers 12 inches dia pipeline from the gas field to Quetta in order to deliver gas to transmission network. This pipeline is expected to cost another US $15 million, to which Bolan Joint Ventures agreed to contribute US $4 million. The field development project is expected to be completed within 28 months, commencing from the execution date of the Gas Sales & Purchase Agreement.
The field development and subsequent production activities from the neighbouring discovery at Ziarat Gas Field will open new vistas, especially for the locals, as a consequence of the development of infrastructure, employment, and easy access to numerous facilities.