PPL discovers gas reserves in Sindh

KARACHI: Pakistan Petroleum Limited (PPL) on Monday announced discovery of gas reserves in an exploratory well in District Dadu, Sindh.

The company shared the development at the Pakistan Stock Exchange (PSX). PPL made the discovery from the exploratory well Rayyan-1 in Kirthar Block (2667-7), located in District Dadu, Sindh Province. The well is operated by M/s. Polish Oil and Gas Company, PKN ORLEN Pakistan Branch with 70 percent working interest along with its joint venture partner Pakistan Petroleum Limited with 30 percent working interest.

Amid fast depleting foreign exchange reserves, the news is good for Pakistan as it mainly relies on imported LNG to meet its needs.

“This discovery will add hydrocarbon reserves of the company, contribute in reducing the energy demand and supply gap in the country, and will save significant foreign exchange for the country through indigenous hydrocarbon production,” Ali Jaffar, PPL company secretary said in the PSX notice.

Rayyan-1 was spud-in on December 5, 2022 and drilled to the depth of approximately 2,446 meters. Drill stem test (DST) was carried out at the said well and the well initially flowed at 7.8 million standard cubic feet per day (mmscfd) gas with the wellhead flowing pressure (WHFP) of 1,920 pounds per square inch (PSI) at 28/64" choke size.

Following the DST, Rayyan-1 well successfully completed and concluded completion integrity test. Accordingly, frac job was conducted and the well flowed at the rate of 12.88 mmscfd gas at the WHFP of 3,190 PSI at 28/64" choke size.

In October 2022, PPL made a gas and condensate discovery from exploration well Shahpur Chakar north X-1, in Block 2568-18 (Gambat South), located in District Sanghar, Sindh.

The Block 2568-18 (Gambat South) EL is operated by PPL with 65 percent working interest along with its joint venture partners Government Holdings Private Limited and Asia Resources Oil Limited with 25 percent and 10 percent working interest, respectively.

PPL was incorporated in Pakistan in 1950 with the main objectives of conducting exploration, prospecting, development and production of oil and natural gas resources. On Monday, the company’s scrip at the bourse went up by Rs0.42 or 0.66 percent to close at Rs64.38. Earlier, Mari Petroleum Company Limited has also announced a gas discovery at its exploratory well Mari Ghazij-1, located in Mari D&PL in Sindh in January 2023, with a gas flow rate of 5.1 million standard cubic feet per day.

The well was drilled down to a depth of 1,015 meters, while the gas flow rate established through a drill stem test was recorded at 5.1 mmscfd, with WHFP of 232 PSI at 64/64 inch choke size. The discoveries are coming amid Pakistan faces a severe energy crunch, as the country’s indigenous gas reserves fail to satisfy the domestic and industry needs.