The pilot project started by state owned Exploration and Production (E&P) companies to explore shale oil/gas in Sindh has been delayed due to technical reasons, officials said. According to sources in the Ministry of Petroleum and Natural Resources, Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited in December 2015 started a pilot project to explore shale oil/gas in Sindh province which was scheduled for completion in March 2016 but the completion of the project has been delayed due to technical reasons.
The exploration of shale gas requires extensive technology and capital which needs refinement of cost-effective horizontal drilling and hydraulic fracturing technologies. These two processes, along with the implementation of protective environmental management practices were a must to produce shale oil/gas, he added. The project was launched following a study conducted with financial support from the United States Agency for International Development (USAID), subsequent to confirming availability of 10,159 Trillion Cubic Feet (TCF) Shale gas and 2,323 billions of Stock Tank Barrels (BSTB) Shale oil in place.
Technically recoverable resources were 58 BSTB and risked technically recoverable resources estimated at 14 BSTB. Data collected from 124 oil/gas wells across the country was used to finalise the latest study, including laboratory analysis on shale cores and cuttings in the United States. The project is delayed as two companies have so far failed to properly use hydraulic fracturing which involves the injection of mainly water and sand into a shale formation to generate cracks in the target rock formation and thereby open fractures so that gas in shale can flow to the well-bore.
The official said the government needed to establish an independent department to exploit considerable shale oil/gas in the country, saying that to address the energy crisis of the country in the long run exploration of shale gas/oil is a must but people with proper training were not available with any of the companies. "Exploration of shale resources will not only require massive finances but highly technical staff and unfortunately the government at present lacks on both the fronts, so to make the shale oil/gas exploration a success an independent department with technical staff is a must," the official said. The government should also formulate shale oil/gas policy as early as possible so that local and international E&P companies could be invited to invest in the sector.