OGDCL Makes First Discovery of Tight Gas Under New Policy

OGDCL plans 15 new wells in the next 24 months with the resource potential of approximately 45 BSCF

Staff Report

Oil and Gas Development Company (OGDCL) made the first discovery of tight gas under the new tight gas policy in 2024.

The Ogdcl on Monday announced the first discovery of tight gas in Sindh province under a new tight gas policy.

The OGDLC is the first oil and gas explorer in Pakistan to take the lead role in expediting tight gas reserves to overcome the gas crisis in the country.

The caretaker government had approved the first tight gas policy offering incentives to oil and gas exploration companies to attract at least $20 billion in investment to explore the untapped tight gas reserves of 35 to 70 trillion cubic feet (tcf).

OGDCL as an operator (100 %) Nur D&PL has discovered Tight Gas from the exploratory well Nur West-1, which is located in District Sujawal, Sindh Province.

The Structure of Nur West-1 was drilled and tested using in-house expertise. The well was drilled down to a depth of 2975 m.

Due to the low permeability (< 1 mD) of “A Sand” of the Lower Goru Formation, a hydraulic fracturing Job was carried out to tap the existing Tight Gas Potential.

During Post frac, isochronal testing indicated the flow rate at 1.24 MMSCFD at 32/64″ choke size with 150 psi WHFP.

However, the Tight Gas & its reserves Certification is in progress in light of the revised Tight Gas Policy 2024. The discovery of Tight Gas from Nur West-1 is the result of the aggressive strategy adopted by the company.

It has opened a new avenue and would add hydrocarbon reserves to the company and the country.

The results of Nur West-1 encouraged OGDCL to further drilling/fracturing to exploit Tight Gas Resources.

OGDCL has planned 15 wells in the next 24 months for hydraulic fracturing through re-entry or drilling of new wells with the resource potential of approximately 45 BSCF, which will be added to the OGDCL reserves portfolio subject to the positive evaluation.

These 15 wells mainly lie in the OGDCL-operated concessions of Districts Hyderabad, Khairpur, Sukkur, Sanghar, Thatta, Nawab Shah, and Tando Allah Yar of Sindh Province.

Further evaluation is in progress regarding the resource potential of Tight Gas in the Middle and Upper Indus Basin.

OGDCL has already launched a regional third-party study to identify and validate the Tight Gas potential approximately in 18 OGDCL-operated Blocks within the Indus Basin. Approximately 70-80 wells have been identified for evaluation.

Based on the third-party study, shortlisted Tight Gas potential areas will be selected for re-entries in existing wells or drilling of new wells (vertical/laterals) followed by hydraulic fracturing to exploit these resources.

OGDCL is also planning to explore & develop Tight Gas Resources on a turnkey basis to add more hydrocarbons to the OGDCL reserves portfolio. The project has been advertised in the international media and reputed international oil & gas service providers have shown keen interest in the project.

To optimize and recover economical hydrocarbons after drilling/fracturing from potential unconventional reservoirs additional reserves will aid the economy of the country and generate new employment opportunities for the locals.

Advanced technology (hydraulic fracturing) with approximately 25000-30000 HHP & allied equipment is required in the country to tap the unconventional potential in an efficient way for which major companies have been approached to ensure requisite equipment and technology on a fast track basis.

To spur the exploration and extraction of tight gas, the caretaker government unveiled an extensive policy delineating crucial lease terms, price incentives, and operational protocols.

Dubbed the “Tight Gas (Exploration & Production) Policy 2024,” to foster investment, technological progress, and the effective utilization of tight gas reservoirs.

Under this policy, the initial term for the development and production lease concerning tight gas production spans up to 30 years, aligning with the proposed field development plan.OGDCL Announces Major Gas and Condensate Discovery in Sindh

Renewal for an additional period, not exceeding 10 years, is feasible upon presenting justifications deemed satisfactory by the government.
To harness the potential of tight gas reserves, a 40% premium on the zonal price outlined in the Petroleum (Exploration & Production) Policy 2012 will be enforced.

It also believes that the country has an untapped potential of 3.6 billion barrels of crude oil, which needs a capital injection of $30 billion.