Pakistan has uncovered optimistic signs of substantial shale gas reservoirs at the pilot well KUC-1 in Hyderabad, Sindh. The development comes amid 8-9 percent annual decline in natural gas production in the country.
The Oil and Gas Development Company Limited (OGDCL) initiated this project in 2020, aiming to address the country’s growing energy demands. According to a study conducted by the United States Agency for International Development (USAID), Pakistan boasts more than 3,000 trillion cubic feet (TCF) of shale gas resources across various shale horizons, reported a national daily.
“We have vertically dug the well and discovered two layers of rocks containing shale gas, and OGDCL experts will further vertically drill up to the third layer in the first week of next month,” explained Dr M Saeed Khan Jadoon, adviser to OGDCL on an exploration of oil and gas and head of the shale gas cell to a national daily.
He added that the data collected and analyzed after fracking the first two layers showed the presence of shale gas in abundance and emphasized OGDCL’s commitment to upgrading human resources in the shale gas cell, with team members sent to China and the USA for exposure to the latest developments in shale gas exploration techniques.
To facilitate fracking in both vertical and horizontal layers, OGDCL has entered into an agreement with Schlumberger, Pakistan. The horizontal drilling in the pilot well is slated to commence after three months and is anticipated to conclude by August 2024. Dr. Jadoon estimated that the entire vertical and horizontal drilling process would take 3 to 4 years at a cost of $25 million to $30 million.
Dr Jadoon stated that the impact of COVID-19 and floods had caused delays in the drilling process. Upon completion, OGDCL plans to market the well to investors based on the data collected from fracking vertically and horizontally, allowing investors to make informed decisions regarding commercial shale gas discovery.
He acknowledged that shale gas recovery on a commercial basis is capital-intensive, estimating the cost at $10-15 per mmBtu. OGDCL, as a national oil company, is taking on this challenging task to pave the way for investors by showcasing the actual production potential of shale gas reservoirs in Pakistan.
The success of the pilot well may prompt OGDCL to drill additional pilot wells to evaluate further the trackability and productivity of shale gas in the region.
Sember Shale, identified as the richest source rock with good thickness, is primarily located in Pakistan’s lower and middle Indus basin. Presently, OGDCL contributes about 35,000 bbl/day of oil and 800 MMSCFD of gas, accounting for 47 percent of oil production and 30 percent of gas production in the country.
OGDCL’s indigenous production has resulted in savings of approximately $4 billion, contributing about Rs280 billion to the exchequer this year. The company also generates significant employment and business opportunities for the people of Pakistan while adhering to local product usage without compromising quality. Despite producing about 70,000 bbl/day of oil and about 3.249 MMSCFD of gas, the current quantities are insufficient to meet the nation’s demand, leading to the import of oil and gas to bridge the gap between demand and supply.
Source: Pro Pakistani