Pakistan's vast Shale Oil & Gas Reserves | Updates & Discussions

[Argus Panoptes]

True. Their govts. do not protect certain sectarian groups like ours in the biggest province and do not offer them dialogue sitting on the dead bodies of 50,000 of their military officers and civilians like ours in our northern province.

When companies makes decision about investing billions of dollars in business development (such as resource exploitation) they must keep in mind the long term stability prospects of the country. And that is where we fall far behind alternative that they might consider, in addition to the terrorism issues that you mention.

 

[ejaz007]

No-one wants to invest in a nation where the security situation is helpless, where foreigners are literally hunted and killed, and it seems there's no place left in Pakistan where they cannot reach. No-one wants to operate in a nation where the infrastructure is so poor, where costs and external shocks to a private enterprise are so high. Furthermore, political instability makes everyone's future uncertain, Pakistan is also a likely candidate for possible sanctions.

Add all that up and more and you realize that none of those corporations in their right mind would want to come to Pakistan at a time like this.



I do agree in what you're saying that IF these corporations make it to Pakistan, they should be made to pay, but that is something again people will do if Pakistan offers them the right opportunity.

Let me also add, often you see, in the past major global players that did come to Pakistan did get massive tax breaks, huge cuts in red tape costs, that is because they managed to bribe the government officials they work with. There are some cases of where the government officials themselves offer the bribe, if the corporation don't take it, the officials refuse to co-operate. Add on another reason why Pakistan is not the right place.

Companies are working in countries with same or less ideal security situation than in Pakistan. They are not deterred by the security situation but by the profit margins and if right margins are allowed they shall come.

Security can be arranged not much of a problem. Companies in African and some middle eastern countries arrange their own security and are working fine.

 

[Jungibaaz]

If those same companies can work in hostile and unstable African states, why not Pakistan? The problem is there is no clear cut policy by the government. The officials in charge of negotiations have no technical know how. They just got there due to their political positions.

Those countries you name, take Nigeria for example.
They have pools of oil that can be extracted easily and cheaply, there is money to be made.
And as far as problems with Boko haram go, they aren't far off from where we are.

But it's worth the risk there, the oil isn't shale as it is in Pakistan.
Every business person must conduct a cost benefit analysis, when you add on the fact that more and more shale reserves are being found elsewhere daily, and the fact that a shale boom is to tak place in the West.

No-one in their right mind would come to Pakistan unless all the issues are dealt with AND proper steps for less corruptiona dn market liberalization.

Companies are working in countries with same or less ideal security situation than in Pakistan. They are not deterred by the security situation but by the profit margins and if right margins are allowed they shall come.

Security can be arranged not much of a problem. Companies in African and some middle eastern countries arrange their own security and are working fine.

The African countries, how many of them are extracting from shale?
Remember, Shale adds on a lot of costs, deters investment, those African couturiers aren't extracting from shale, it is far cheaper for those companies there.
And none of them face the multitude of problems faced here in Pakistan, the problems may be just as severe but take the energy crisis for example, that is a perfect way for a firm to begin eroding it's expected profits within a period of time.

 

[RiazHaq]

Those countries you name, take Nigeria for example.
They have pools of oil that can be extracted easily and cheaply, there is money to be made.
And as far as problems with Boko haram go, they aren't far off from where we are.

But it's worth the risk there, the oil isn't shale as it is in Pakistan.
Every business person must conduct a cost benefit analysis, when you add on the fact that more and more shale reserves are being found elsewhere daily, and the fact that a shale boom is to tak place in the West.

No-one in their right mind would come to Pakistan unless all the issues are dealt with AND proper steps for less corruptiona dn market liberalization.



The African countries, how many of them are extracting from shale?
Remember, Shale adds on a lot of costs, deters investment, those African couturiers aren't extracting from shale, it is far cheaper for those companies there.
And none of them face the multitude of problems faced here in Pakistan, the problems may be just as severe but take the energy crisis for example, that is a perfect way for a firm to begin eroding it's expected profits within a period of time.

Pakistan does have security challenges. But your assertion that "No-one in their right mind would come to Pakistan" is just plain wrong. There are hundreds of multi-nationals currently operating in Pakistan.

In oil and gas sector, there's an entire association called "Pakistan Petroleum Exploration and Production Companies Association" with dozens of foreign member companies working in Pakistan now.

Official Website of Pakistan Petroleum Exploration and Production

 

[RiazHaq]

Here's Pakistan existing energy infrastructure map:

Official Website of Pakistan Petroleum Exploration and Production

 

[Jungibaaz]

Pakistan does have security challenges. But your assertion that "No-one in their right mind would come to Pakistan" is just plain wrong. There are hundreds of multi-nationals currently operating in Pakistan.

In oil and gas sector, there's an entire association called "Pakistan Petroleum Exploration and Production Companies Association" with dozens of foreign member companies working in Pakistan now.

Official Website of Pakistan Petroleum Exploration and Production

There are multinationals operating in Pakistan.
That no-one in their right mind' thing was a figure of speech.

The amount of FDI is entirely insignificant.

My friend, sugar coating the truth doesn't stop it being bitter.

And let me tell you what else, from 2010, FDI fell again in 2011 to around the $1 billion mark then again in 2012 to below the half a billion mark in USD terms. That is according to the world bank.

Now that for a developing economy of total GDP over $200 billion with the pools of cheap labour and potential growth capability, is an absolutely pathetic figure.

Say what you will, the figures speak for themselves.

 

[RiazHaq]

There are multinationals operating in Pakistan.
That no-one in their right mind' thing was a figure of speech.

The amount of FDI is entirely insignificant.

My friend, sugar coating the truth doesn't stop it being bitter.

And let me tell you what else, from 2010, FDI fell again in 2011 to around the $1 billion mark then again in 2012 to below the half a billion mark in USD terms. That is according to the world bank.

Now that for a developing economy of total GDP over $200 billion with the pools of cheap labour and potential growth capability, is an absolutely pathetic figure.

Say what you will, the figures speak for themselves.

Yes, overall FDI figures are down.

Sector-wise, FDI has declined the most in telecom sector mainly because of delays in 3G licensing.

But FDI in oil ad gas sector has continued to be over half a billion dollars each year for many years:

2007-8 634.8
2008-9 775.0
2009-10 740.6
2010-11 512.2
2011-12 629.4
2012-13 559.6

Foreign investment

There are multinationals operating in Pakistan.
That no-one in their right mind' thing was a figure of speech.

The amount of FDI is entirely insignificant.

My friend, sugar coating the truth doesn't stop it being bitter.

And let me tell you what else, from 2010, FDI fell again in 2011 to around the $1 billion mark then again in 2012 to below the half a billion mark in USD terms. That is according to the world bank.

Now that for a developing economy of total GDP over $200 billion with the pools of cheap labour and potential growth capability, is an absolutely pathetic figure.

Say what you will, the figures speak for themselves.

Yes, overall FDI figures are down.

Sector-wise, FDI has declined the most in telecom sector mainly because of delays in 3G licensing.

But FDI in oil ad gas sector has continued to be over half a billion dollars each year for many years:

2007-8 634.8
2008-9 775.0
2009-10 740.6
2010-11 512.2
2011-12 629.4
2012-13 559.6

http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=180&Itemid=137

 

[Pabbi]

Why you people are so jealous.

 

[RiazHaq]

Here's a VOA report on China's growing footprint in Pakistan:

China is one of Pakistan’s largest business partners, and more than 120 Chinese companies are doing business in Pakistan. This is despite the serious security risks Chinese nationals face in Pakistan.

During Pakistani Prime Minister Nawaz Sharif’s visit last month to China, the two countries signed several economic agreements that give Pakistan much-needed foreign investment. China will also benefit, says Derek Scissors of the Heritage Foundation.

"China gains two things. Employment for its workers for a while on these projects and revenue from the projects for the companies. That’s the commercial side. On the political side, Pakistan does need power. It does need a more consistent power supply that will help Pakistan’s economy and social stability," said Scissors.

China is also seeking Pakistan’s cooperation in curbing the militants that China says use Pakistani territory to launch attacks in its restive Xinjiang, or East Turkestan, region.

Aqab Malik is with Johns Hopkins School of Advanced International Studies.

"I think one of the foremost elements of this agreement is the understanding that Pakistan must combat, as far as China is concerned, the threat that is imposed from the East Turkestan Islamic Movement," said Malik.

Malik also says, in order to sustain long term economic growth, Pakistan must crack down on radicalism and extremism.

"Now [that] it has made economic agreements with China, there has to be some progress towards real counter-radicalization, counter-extremism programs, and there must be an off-the-fence, direct, stated goal that they are going to confront it. but actually implement it also," he said.

Anti-U.S. sentiments are high in Pakistan, and many see China as a counterweight to the United States as a trading partner. But relying too heavily on any one country may not be a good option for Pakistan. Derek Scissors:

"Diversification is good. It applies to the United States for Pakistan and it also applies to China. Being too heavily dependent on China would be a mistake," he said.

China-Pakistan bilateral trade was over $12 billion last year, and the leaders of the two countries have promised to increase it in years to come.

Chinese Economic Footprint in Pakistan Increasing

 

[Samlee]

Pakistan's Energy Infrastructure Map

Haq's Musings: Why Blackouts and Bailouts in Energy-Rich Pakistan?

Sir We May Not Need Non Conventional Gas Reserves We Have Conventional Ones.Zin Block Can Fulfil Our Needs For 100 Years

‘Zin Block can fulfil all of Pakistan’s energy needs for next 100 years’ | The News Tribe

Also Tal Block Can Get Us Through For 30 Years


Gas production likely to soar in Tal Block

By Muhammad Yasir

KARACHI: Gas reserves and productions from two fields in the Tal Block are expected to increase around 300 mmcfd and 5 tcf by the end of 2008, sources in the energy sector told Daily Times here on Tuesday.

Geologists believe that gas production of these two fields would rise by 300 mmcfd (million metric cubic feet per day), separately with the ratio of 250 mmcfd and 50 mmcfd. The reserves of Tal Block have reached 2.5 tcf (trillion cubic feet) as per official statement issued by Pakistan Oilfields Limited (POL), while geologists believed it will enhance to 5 tcf by the end of 2008.

Enhancing gas reserves and production of the country, the drilling project titled ‘Manzilai Field Development Plan’ was conducted in Manzilai and Makori fields during the first quarter of the current fiscal year. Situating in NWFP near Kohat, Tal Block is currently producing 65 to 80 mmcfd gas.

Energy analyst, Saad bin Ahmed said that the gas production of the Tal Block would be ranked as one of the largest gas producing fields of the country and it is one of its own types as a matter of fact that it will enhance its gas production substantially in short time period.

Pakistan has only six gas fields generating up to 300 mmcfd and it would be the seven major gas field that would also enhance overall gas production of the country for long time period, he added.

He further said that the gas production at Tal Block is likely to take the total gas reserves sufficient for over 30 years. Before this discovery, the country had gas reserves for 20-25 years.

In Taj Block gas reseves, Oil and Gas Development Company Limited (OGDCL) has 30 percent share, Pakistan Petroleum Limited posses 28 percent share and Pakistan Oilfield holds 25 percent stakes, while the remaining shares were divided among the operators MOL and government owner company GHPL. MOL is also the operator of the Tal’s field.

Pakistan has 103 various gas field reserves in different parts. The total gas reserved is estimated around 51 tcf gas on which 33 tcf is consumed. Sui, Boluchistan is the biggest gas-producing field having total estimated reserves of 12.6 tcf. It has consumed around 9.1 tcf since gas reserves discovered while 3.5 tcf reserves are remaining. This field generates 641 mmcfd as per first quarter’s figure. Mair and Qadirpur gas fields are the others biggest gas producing fields of the country with the production of 461 mmcfd 518 mmcfd

 

[RiazHaq]

Here's Daily Times on oil and gas drilling in 2012-13 in Pakistan:

Exploration and production drilling activities in financial year (FY) 2012-13 was the highest-ever development drilling in Pakistan as total 62 wells were drilled, up 82 percent on yearly basis, analysts said on Tuesday.
Meanwhile target of 105 wells for FY 2013-14 is modest and leaves room for improvement, said Fawad khan an analyst at Foundation Securities.
Pakistan has achieved highest-ever development drilling with total 62 wells in FY 2012-13, registering 82 percent yearly increase. The sharp pickup in activity is driven primarily by private sector and should lead to modest increase in production, as most of the drilling is concentrated in low-yielding wells in Badin.
United Energy Group (UEG-Chinese exploration and production giant)) has emerged as the largest contributor to Pakistan drilling programme with over 43 percent drilling in FY 2012-13. Once again stratigraphic traps in Badin received huge focus on exploration. UEG efforts to unlock the potential in Badin block and new exploration leases are bearing fruits out of 17 exploration wells, UEG found hydrocarbons in at least 12 wells.
Oil and Gas Development Corporation (OGDC) and Pakistan Petroleum Limited (PPL) are yet to touch their full potential on drilling activity. OGDC has drilled only 24 wells in FY 2012-13, up 41 percent on yearly basis, but still below start of the year drilling target of 29 wells.
Khan said available details on FY 2013-14 drilling suggest both PPL and OGDC have not set significantly higher drilling target. Total industry drilling target is set at 105 wells like FY 2012-13. UEG will lead drilling with 55-60 wells drilling programme.
Ongoing exploration in high profile Zin block (OGDC), exploration drilling in Tal at Kot (particularly POL) and complete results on exploration wells in Gambat South (PPL) can bring significant reserve and production upside.
A number of important development projects are slated to come online during FY 2013-14, which are important for materialisation of overall earnings and production targets.
Khan particularly highlighted the Gas Processing Facility at Makori, development drilling in Makori East and Nashpa and progress on second phase production ramp-up on Kunnar Pasakhi Deep (KPD) field.
He estimated FY 2013-14 earnings growth for OGDC, PPL and POL of 36 percent, 28 percent and 32 percent driven by 15 percent, 6 percent and 11 percent volume growth respectively.
Despite a swift bidding round for 60 exploration leases following approval of 2012 E&P policy, actual award of leases has faced certain regulatory hiccups in certain cases. This can potentially delay the impact of new policy on drilling programme, which typically takes at least three years to materialise. Just to recap, 2012 policy offered 26percent, 100 percent higher oil/gas prices over 2001 policy pricing.
Government initially offered attractive conversion terms for areas under previous policies but later on changed certain conditions. Through award of 57 blocks, the government received minimum work commitment of $372 million.

Daily Times - Leading News Resource of Pakistan

 

[Samlee]

Pakistan's Future in Oil & Gas

November 13, 2012 RECORDER REPORT
The Oil and Gas sector in Pakistan has seen phenomenal growth since the independence in 1947 when oil quantities produced were scarce. These limited quantities were being produced from a few small fields located in the Potohar region. At that time was no gas production.

Over the past half century the petroleum industry has played a significant role in national development by making large indigenous gas discoveries. Pakistan meets about 18% of its oil demand from local sources. The Government realising fully well that while a fiscal package with competitive incentives plays a vital role in attracting fresh investment an adequate protection of the companies' investment, is an essential prerequisite for the promotion of petroleum exploration in the country. This led to the enactment of the Foreign Investment Protection law of 1976 by the Parliament , under which the Government guaranteed full safeguard to foreign investments in Pakistan.

Pakistan's presents economy growth rate shows that our energy needs will increase from 64.5 Million Tonnes of Oil Equivalent (TOE), in 2010-11 to over 361.31 Million TOE in 2030. To overcome the projected needs of energy, major dependence will remain on the Oil & Gas sector. A total of 808 exploratory wells have been drilled so far in the sedimentary basins of Pakistan covering 827,267 Sq. Kms. Till 31st July 2012, 250 oil and gas fields (58 oil and 192 gas and gas/condensate) have been discovered in various basins of Pakistan with a success rate of 1:3.22. The remaining recoverable reserves of natural gas and oil are estimated at 26.6 Trillion Cubic Feet (TCF) and 341.9 Million US Barrels respectively.

Large areas of Pakistan's petroliferous basins eg Offshore Indus Basin, Makran Basin & Balochistan Basin still remain as a geological frontier and hold promise for the future in view of the multiple havitats for petroleum generation and accumulation which may act as a game changer in energy self-sufficiency. Independent international studies indicate an oil and gas potential that is many times more than these proven reserves. This area is totally under-explored & exports believe that it has huge prospectus for oil & gas. Following steps are being taken to enhance the exploration of oil & gas in the country:-

--- New Petroleum (Exploration & Production) Policy, 2012 will accelerate E & P activities and promote foreign direct investment in the oil & gas sector of Pakistan.

--- Basin study has been completed to co-relate entire data of different basins. It would help to identify new play types and help in new discoveries & simultaneously increase in indigenous energy.

--- Have state-of-the-art data repository centre-digitised data is available to existing and new companies to participate in exploration.

--- For exploration of non-conventional hydrocarbons separate policies on Tight Gas, Low BTU, Low Pressure Flared (LPF) gas have been prepared.

--- Completion of pending development projects-can and 400-500 MMCFD gas. At the current oil and gas production/consumption rate, the oil reserves can last for 11 years and gas for the 18 years. The government is thereof, besides making efforts to increase local supply has signed an agreement for import of gas from Iran. Additionally government is also considering different options of import of gas from Turkmenistan & Qatar and import of LNG to cope with the increase in demand.


Pakistan's Future in Oil & Gas | Business Recorder

 

[Samlee]

Here Is The Link To A Report By The National Institute Of Oceanography titled "Hydrocarbon Potential in The Makran Offshore Area".Read The Comments On Page 6

"The Preliminary Results Obtained So Far Thus Indicate A Good Prospects For A Vast Energy Source In The Makran Offshore Area as It Is Estimated That The Total Amount Of Organic Carbon In Hydrate Gas Is Probably More Than Twice That In All Fossil Fuels On Earth"

http://www.searchanddiscovery.com/documents/2012/80218tabrez/ndx_tabrez.pdf

Here Is The Link To A Report By The National Institute Of Oceanography titled "Hydrocarbon Potential in The Makran Offshore Area".Read The Comments On Page 6

"The Preliminary Results Obtained So Far Thus Indicate A Good Prospects For A Vast Energy Source In The Makran Offshore Area as It Is Estimated That The Total Amount Of Organic Carbon In Hydrate Gas Is Probably More Than Twice That In All Fossil Fuels On Earth"

http://www.searchanddiscovery.com/documents/2012/80218tabrez/ndx_tabrez.pdf

According To Engro Energy Research Group Our Offshore Is Virtually Undiscovered

http://www.thenews.com.pk/Todays-News-3-181287-Gas-pricing-exacerbates-energy-shortfall-Engro

 

[darkinsky]

Here Is The Link To A Report By The National Institute Of Oceanography titled "Hydrocarbon Potential in The Makran Offshore Area".Read The Comments On Page 6

"The Preliminary Results Obtained So Far Thus Indicate A Good Prospects For A Vast Energy Source In The Makran Offshore Area as It Is Estimated That The Total Amount Of Organic Carbon In Hydrate Gas Is Probably More Than Twice That In All Fossil Fuels On Earth"

http://www.searchanddiscovery.com/documents/2012/80218tabrez/ndx_tabrez.pdf




According To Engro Energy Research Group Our Offshore Is Virtually Undiscovered

Gas pricing exacerbates energy shortfall: Engro - thenews.com.pk

if there is so much energy i dunno what we are doing drilling for gas in sindh we should move there establish oil rigs and we can meet out energy needs for centuries maybe?

 

[RiazHaq]

Net FDI in Pakistan up 76% from 2011-12 to 2012-13:
Net foreign direct investment into Pakistan rose 76 percent in the fiscal year 2012-13, which ended in June, reaching $1.447 billion compared to previous year, according to data from the State Bank of Pakistan.
Between July and June, there was an inflow of $2.653 billion and outflow of $1.205 billion, according to the central bank. In the same period the year earlier, there was an inflow of $2.099 billion and outflow of $1.278 billion.
During June this year, net foreign direct investment rose to $128 million compared to $56 million a year earlier.
Daily Times - Leading News Resource of Pakistan