Petroleum of exploration in Pakistan

Despite a long history of exploration

the first well in what is modern Pakistan was drilled in 1857,
the first commercial discovery was made in 1914
Pakistan remains a modest producer of oil and gas and
currently imports 80 percent of its crude oil requirements.
The country is self-sufficient in natural gas, although this is
likely to change demand increases.
Oil and natural gas each account for about 40 percent of
Pakistan's commercial energy supplies but currently form
only a small part of the country's economy.
The state-owned Oil and Gas Development Corporation
(OGDC) remains the most important player in the Pakistani
oil industry.
Pakistan Petroleum Ltd. (PPL), established in 1950,
produces the majority of the natural gas.
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

Major geographic Division of Pakistan

Pakistan is divided into three major
geographic areas:
the northern highlands;
the Indus River plain, with two major
subdivisions corresponding roughly to the
provinces of Punjab and Sindh; and
the Balochistan Plateau.
The northern highlands include parts of the
Hindu Kush, the Karakoram Range, and the
Himalayas.
This area includes such famous peaks as K2
(Mount Godwin Austen, at 8,611 meters the
second highest peak in the world), and
Nanga Parbat (8,126 meters), the twelfth
highest.
South of the northern highlands and west of
the Indus River plain are the Safed Koh
Range along the Afghanistan border and the
Sulaiman Range and Kirthar Range,
which define the western extent of the
province of Sindh and reach almost to the
southern coast.

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

OIL & GAS EXPLORATION

Total Area :

796,096 Sq. Kms

Area under
Exploration:

149,677 sq.km.
Operators:

20 (5 Local)

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

In 1866 some seven or eight holes were dug in and around
the seepages near Fatehjang, 25 miles west of Islamabad,
yielding a few gallons of oil per day (Pascoe 1920).
Then, in 1870, B. S. Lyitaan, an American from P ennsylvania
was hired to investigate the oil prospects of the Punjab.
His report is of special interest to a meeting on Classic
Petroleum Provinces, since its maps were probably the
first ever published on which subsurface structure was
delineated by contours, Owen (1975).
During the last quarter of the 19th Century there were
sporadic attempts to drill shallow boreholes in the
northern parts of the Central Fold Belt.
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

This activity culminated in the drilling of thirteen wells at
Kattan in the Marri Tribal Territory of northeast Baluchistan
near oil seepages and from which 25 000 barrels of oil were
produced between 1885 and 1892.
The impetus for this drilling was to establish a convenient
source of fuel for the railway system which the then Indian
Government was constructing to help secure the
Afghan/Indian border.
Immediately prior to World War I, various investment
syndicates (mainly British financed) were formed to explore
in the Punjab and it is from these origins that the first
significant company was established on 1 December 1913 to
acquire extensive exploration rights;
The Attock Oil Company.In 1915, oil was discovered in
quantity at Khaur
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Drilling and success Ratios

Exploratory Wells
Development Wells
Total:
Sedimentary Area:
Drilling Density
Discoveries
Oil
Gas
Overall Success Rate

750
900
1,650
827, 268 sq
One well per 1367 Sq. km.
200
80
120
1 : 3.5

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Upper Indus Basin (Potwar Basin)

Potohar Plateau is bounded on the east by the Jhelum River, on the west by the Indus River, on
the north by the and the Margalla Hills, and on the south by the Salt Range[1]. The terrain is
undulating.
The Kala Chitta Range rises to an average height of 450-900 metres (3,000 ft) and extends for
about 72 kilometres (45 mi).
The Swaan River starts from nearby Murree and ends near Kalabagh in the Indus river.
Sakesar is the highest mountain of this region.

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

OIL

Pakistan has an interesting Geo-dynamic history of large and

prospective basin (onshore and offshore) with sedimentary area of
827,268 sq. km.

So far about 883 million barrels crude oil reserves have been
discovered of which 559 million barrels have already been produced.

A Prognostic potential of total endowment of hydrocarbons has been

estimated as 27 billion barrels of oil and 282 trillion cubic feet of gas.

Up till now over 653 exploratory wells have been drilled by various
national and international exploration and production companies,
resulting in over 185 oil and gas discoveries.

Indigenous production of crude oil during the year 2005-06 was 65,577
barrels per day.
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

NATURAL GAS
Pakistan is among the most gas dependent economies of the world.
Natural gas was first discovered in 1952 at Sui in Balochistan province
which proved a most significant and largest gas reservoir.
After successful exploration and extraction, it was brought to service in
1955. This major discovery at Sui followed a number of medium and small
size gas fields in other part of the country.
So far about 52.7 TCF of gas reserves have been discovered of which 20.2
TCF have already been produced.
Natural gas production during 2005-06 was about 3.8 billion cubic feet per
day.
Pakistan has well developed and integrated infrastructure of transporting,
distributing and utilizing natural gas with 9,257 km transmission and
74,186 km of distribution and service lines network developed
progressively over 50 years.

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Oil and Gas Development Corporation
The Government of Pakistan established Oil and Gas
Development Corporation (OGDC) in 1961 as a statutory
corporation to undertake exploration and development of
oil and gas resources.
In October 1997 OGDC was converted into a public limited
company and renamed as Oil and Gas Development
Company Limited (OGDCL).
In November 2003, on behalf of the Government of
Pakistan, the Privatisation Commission divested 5% of the
GoPs shareholding in OGDCL by way of an Offer for Sale
through an Initial Public Offering at the domestic stock
exchanges.
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Company Description

OGDCLs annual sales for the year 2005 are 39,130

barrels of oil per day, 919 million cubic feet per
day of gas, 334 metric tons per day of LPG and 71
metric tons per day of sulphur. OGDCLs share in
the total oil and gas production has been 47% and
23% respectively during the year 2004-05.
OGDCL holds the largest share of oil and gas
reserves in the country, being 37% of total oil and
32% of total gas reserves, amounting to 115
million barrels of oil and 10.5 trillion cubic feet of
gas as of July 1, 2005.
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

OGDCLs major oil and gas fields
OGDCLs major oil and gas fields are located at
Kunnar, Pasakhi, Bobi, Tanbdo alam, Thora,
Lashari, Sono, Fimkassar, Kal, Sadqal, Rajian,
Missakeswal, Dhodhak, Dhakhni, CHanda, Chak,
Naurang, Qadirpur, Pirkoh, Loti, Nandpur/Panjpir
and Hundi/ Sari.
OGDCL has so far completed major development
projects like Dhodak Development Project, Dhaki
Development Project, Pirkoh Development
Project , Nandpur/Panjpir Development Project,
Sadqal Gas Compression Project, Uch
Development Project and Bobi Development Projet
Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Discoveries

OGDCL presently holds the largest acreage position in Pakistan and as

on 30 June, 2005 was operating in 25 concessions covering an area of
59,968 Sq Km which constitutes 30% of total exploration area granted
to various E&P companies in Pakistan.
As of July 2005, OGDCL so far has drilled 198 exploratory and 246
development wells.

On the basis of its activities since inception, has until July 2005, made
60 discoveries with a success ratio of 1:3.

In the last 4 years, OGDCL has been successful in making 10

discoveries two oil discoveries and eight gas/condensate
discoveries.

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

PPL Company History

PPL was incorporated in June 1950 with the Burmah Oil Company (renamed
Burmah Castrol) and GoP as its principal shareholders.

After
. more than 50 years of successful operations PPL continues to be a
prominent E&P player in Pakistan with:

Sui, Pakistans oldest and largest gas field discovered and operated by
PPL
contributing 25% of Pakistans gas production;

Remaining proven plus probable (2P) reserves of 6.9 tcf gas and 39.6
mmstb oil/NGL) as of June 30 2005;

Average FY2005 production of 948 MMcfd of natural gas and 1,759 bbld of
crude oil/NGL;

FY2005 revenues of PKR 23,294 million (US$ 388 million) and profit after
tax of PKR 8,623 million (US$ 144 million);

Significant portfolio of non-operated assets, including Qadirpur, Sawan

and Miano, Block-22 and Tal;

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Organization
The Companys holds operatorship of major oil and gas fields
including Sui, Kandhkot, Adhi and Mazarani, while its nonoperated portfolio includes interests in the Qadirpur, Miano,
Sawan and Tal fields.
The Companys exploration portfolio includes operated and
non-operated joint ventures in 10 onshore blocks and 2 offshore
blocks.
PPL holds joint ownership with the Government of Balochistan
in Bolan Mining Enterprises (BME), which is involved in the
business of mining exploratory well-drilling grade barite
powder.
BME is the operator of the Gunga barytes mine in Baluchistan.
Share of profit in BME at year end June 30, 2005 was PKR
29.263 million.

Department of Petroleum Technology , University of Karachi

History of exploration in Pakistan

Department of Petroleum Technology , University of Karachi