Key Points
- Initial output includes 10.5 million standard cubic feet of gas and 600 barrels of condensate per day
- Production will be linked to Pakistan’s national gas network
- New supplies support efforts to curb energy imports and strengthen energy security
ISLAMABAD: Pakistan’s largest state-owned oil and gas producer said on Tuesday that a newly drilled well in the country’s southern Sindh province had begun producing natural gas and condensate.
Fresh indigenous production would provide a modest boost to domestic energy supplies as Islamabad seeks to reduce its reliance on imported fuels.
The state-owned Oil and Gas Development Company Limited (OGDCL) said the well produced 10.5 million standard cubic feet of natural gas per day and 600 barrels of condensate per day during production tests.
Condensate is a light hydrocarbon liquid produced alongside natural gas that is refined into transport fuels and petrochemical products.
The company said the new well, known as Chak 63-05, is located in the Chak field in Sindh province and will be connected to Pakistan’s southern natural gas transmission network operated by Sui Southern Gas Company (SSGC).
The networking would enable commercial production to begin after the necessary infrastructure is completed.
The announcement was made in a regulatory filing to the Pakistan Stock Exchange, the country’s main stock market.
Pakistan imports a large share of the crude oil, petroleum products and liquefied natural gas (LNG) it consumes. Import dependence renders the economy vulnerable to swings in global energy prices and places pressure on its foreign exchange reserves.
Increasing domestic oil and gas production is a key element of the government’s strategy to improve energy security and reduce the country’s energy import bill.
The new well is unlikely to transform Pakistan’s overall energy balance on its own. However, it will add incremental domestic supplies at a time when natural gas production from many of the country’s mature fields has been declining.
OGDCL said the well was drilled to a depth of 3,325 metres and that preparations are underway to connect it to the gas network, enabling production to begin as soon as possible.
OGDCL operates the field with a 62.5 per cent stake, alongside Government Holdings (Private) Limited, which holds 22.5 per cent, and Orient Petroleum Inc. Limited, which owns the remaining 15 per cent.
Headquartered in Islamabad, OGDCL is Pakistan’s largest exploration and production company and accounts for a significant share of the country’s domestic crude oil and natural gas output.
The new well adds fresh domestic energy supplies as Pakistan continues efforts to strengthen energy security and reduce its dependence on imported fuels.
