Islamabad:
Oil and Gas Development Company Limited (OGDCL) has initiated efforts to explore tight gas under the new Gas Policy 2024, aiming to drill up to 80 wells in the country.
OGDCL on Monday announced its first natural gas discovery in Sindh under the new policy. The giant oil and gas explorer is taking the lead in accelerating the exploration of limited natural gas reserves to overcome the country’s natural gas crisis.
Earlier, the caretaker government approved the first tight gas policy offering incentives to oil and gas exploration companies to attract at least $20 billion in investment to search for the country’s 35 to 70 trillion cubic feet (tcf) of untapped natural gas reserves. .
OGDCL, the 100% operator of the Nur development and production lease, has discovered tight gas in the Nur West-1 exploratory well, located in the Sujawal district of Sindh. The well was drilled and tested using in-house expertise. It was drilled to a depth of 2,975 meters. Due to its low permeability in the Kato Goros formation, hydraulic fracturing was performed to measure the existing tight gas potential.
After fracturing, tests indicated a flow rate of 1.24 million standard cubic feet per day (mmscfd) of gas with a wellbore flow pressure of 150 pounds per square inch (psi).
The certification of tight natural gas and its reserves is ongoing in light of the Tight Gas Policy 2024. The discovery at Nur West-1 is the result of an aggressive strategy adopted by the company, which opened a new avenue and will add hydrocarbons company and country reserves.
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The results of Nur West-1 encouraged OGDCL to engage in further drilling/fracturing to exploit the limited gas resources.
The company has planned to drill 15 wells over the next 24 months for hydraulic fracturing via re-entry or testing new wells with a resource potential of approximately 45 billion cubic feet (bscf), which will be added to its reserve portfolio subject to a positive rating.
These 15 wells are mainly located in concessions managed by OGDCL in Hyderabad, Khairpur, Sukkur, Sanghar, Thatta, Nawabshah and Tando Allah Yar districts of Sindh province.
Further assessment is underway on tight gas potential in the Middle and Upper Indus Basin.
OGDCL has already initiated a study with the help of a third party to identify and validate the restricted gas potential in 18 blocks in the Indus Basin. Approximately 70 to 80 wells have been identified for appraisal.
Based on the third-party study, the selected gas-bearing areas will be selected for re-entry between existing wells or for drilling new wells (vertical/lateral) followed by hydraulic fracturing to exploit these resources.
OGDCL also plans to explore and develop limited turnkey natural gas resources to add more hydrocarbons to its reserve portfolio. This project has been advertised in the international media, which has generated strong interest from renowned international oil and gas service providers.
The optimization and economic recovery of hydrocarbon deposits after drilling/fracturing from potential unconventional reservoirs will help the national economy and create new employment opportunities for local people.
Advanced technology (hydraulic fracturing) with approximately 25,000-30,000 HHP and associated equipment is required to exploit the unconventional hydrocarbon reserves in an efficient manner for which major companies have been approached to ensure delivery of the required equipment and technology on a fast track basis.
In a bid to boost natural gas exploration and extraction, the caretaker government unveiled a sweeping policy delineating critical lease terms, price incentives and operational protocols.
Dubbed the ‘Seamless Gas (Exploration & Production) Policy 2024’, it will boost investment, technological progress and efficient use of tight gas fields.
Published in The Express Tribune, April 9u2024.
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