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Home Business & Stock

New gas reserves discovered in Balochistan

MM News Staff by MM News Staff
February 17, 2024
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Mari Petroleum Company Ltd (MPCL) has declared a significant gas discovery in the Kohlu District of Balochistan, a region previously deemed highly security-sensitive and unexplored. MPCL, operating with a 95% interest, announced its plans to expedite exploration activities in the area, considering its importance for future endeavors.

The discovery, located in Block 28, is a noteworthy development as it provides valuable insights into the existing petroleum system of the region. Mari Petroleum, a commercial entity under the army-led Fauji Foundation, holds a 95% interest in the block, with the remaining 5% owned by the Oil and Gas Development Company Ltd (OGDCL).

Kohlu Block-28, known as a promising hydrocarbon area, had long been avoided by local and international companies due to security concerns. The area had been off-limits for about 33 years, with successive petroleum concession holders declaring force majeure. MPCL’s success in exploration is seen as a breakthrough, as the region had faced security challenges that hindered exploration activities since the grant of Exploration License in 1991.

The gas discovery resulted from exploratory efforts at the Maiwand X-1 St-1 exploration well, drilled in Block 28. This area is in close proximity to the Sui gas field, which has been a significant energy source for almost six decades. It is also near the Zin Block, where major deposits have been identified, albeit with a low heating value suitable for on-site utilization in fertilizer and power production, similar to the Uch gas field.

The Directorate General of Petroleum Concessions (DGPC) of the Ministry of Energy welcomed the discovery, emphasizing its significance in a highly security-sensitive area where exploration activities had been halted for over three decades. A special security force was created to facilitate the company’s exploration efforts in the 6,200 sq km block.

While the gas discovery may not be substantial in volume, it holds great significance as it proves the presence of hydrocarbons in a security-sensitive area. MPCL reported that the well, spudded on June 12, 2023, successfully drilled down to 2,516 meters by Nov 12, 2023. Multiple promising zones were tested during Drill Stem Tests, with notable gas flows from different formations, including Dughan & Rank Kot, Pab & Mughal kot, and two other formations, showcasing the potential for viable reserves in this newly explored region.

 

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