OGDCL Accelerates Tight Gas Exploration Indus Basin

ISLAMABAD: Oil & Gas Development Company Limited (OGDCL), Pakistan’s industry leader in exploration and production (E&P), is making significant strides in the development of the country’s unconventional hydrocarbon resources. This follows incentives introduced by Govt of Pakistan under the new tight gas policy in 2024, which offers a 40% premium over the 2012 policy price to promote the exploration and commercial exploitation of tight gas.Meeting of Cabinet Committee on Transfer of OGDCL Shares with the Privatization Commission

OGDCL has already made notable progress in this area, with the successful production of its first tight gas well, Nur West-1, followed by additional wells to be fracked through in-house expertise. As part of its ongoing efforts to unlock the full potential of Pakistan’s tight gas resources, OGDCL has launched a comprehensive study to assess tight gas prospectivity across key areas in the Lower Indus Basin, Sindh.

To support this ambitious initiative, OGDCL announced an international tender on March 7, 2024, for an Integrated Study of Tight Gas Prospectivity Evaluation. After a rigorous two-stage evaluation process involving 11 international bidders and 7 shortlisted companies, Schlumberger (M/s SLB) was selected as the preferred contractor. The selection was based on Schlumberger’s proven technical capabilities and financial competitiveness. The study, which will identify the most promising tight gas areas and wells, will play a crucial role in shaping OGDCL’s future drilling and production strategies.

Upon completion, the study will pinpoint optimal locations for new wells, as well as re-entry opportunities for existing wells, to conduct hydraulic fracturing (fracking) and unlock gas from tight reservoirs. This will help OGDCL to commercialize tight gas resources on a fast-track basis, helping to meet Pakistan’s growing energy needs.

OGDCL’s partnership with Schlumberger is a key milestone in its ongoing efforts to leverage advanced technologies and best practices in unconventional resource development. This collaboration is expected to bring valuable expertise and innovation to Pakistan’s tight gas sector, ensuring the sustainable and efficient exploitation of the country’s hydrocarbon resources.

Based on regional studies and using preliminary data, it is estimated the total prospective resource of Pakistan’s tight gas is 25.2 TCF. On its part, OGDCL plans to execute 25 wells, with an initial production potential of 60-75 MMSCFD and an estimated reserve of 75-90 BCF over the next 5 years.

Through this strategic initiative, OGDCL reaffirms its commitment to driving Pakistan’s energy security and contributing to the nation’s economic growth by harnessing every available hydrocarbon resource.