Rehman-8 ST-3 well: Govt declares Pab as tight gas reservoir
ISLAMABAD: The government has declared Pab reservoir in Rehman-8 ST-3 well as a tight gas reservoir, in accordance with the Clause 4 of the Tight Gas (Exploration & Production) Policy, 2011 on the recommendations of Petroleum Division, official sources told Business Recorder.
Petroleum Division recently briefed the ECC that the enhancing indigenous gas production through exploitation of unconventional resources was critical for ensuring Pakistan s energy security and reducing reliance on imported fuels. In this regard, the Government has introduced the Tight Gas (E&P) Policy, 2011 to incentivise development of low-permeability gas reservoirs that are nor commercially viable under conventional production techniques.
Petroleum Division apprised that M/s Polish Oil and Gas Company (POGC) Pakistan has requested for approval of re-evaluation and re-certification of tight gas reserves and reservoir in respect of Rehman-8 ST -3 well, located in Rehman Development and Production Lease, in accordance with Clause-5(h) of the Tight Gas (E&P) Policy.
Petroleum Division further apprised that Rehman-8 ST-3 well was spudded on August 5, 2021 and reached a total depth of 2,845 meters (MD) on May 2, 2023, after addressing various operational challenges. The well was perforated in the Upper Pab Sand interval, pre-fracturing and post-fracturing production results demonstrated a noticeable improvement in gas flow rates following application of non-conventional completion techniques.
Petroleum Division explained that based on the initial production performance and reservoir characteristics, M/s POGC requested declaration of the subject well as a Tight Gas Well under the policy. Accordingly, after competitive bidding, M/s RPS was engaged as a third-party consultant to certify the reservoir.
However, after examination, the report submitted by M/s RPS was not accepted and declined through a letter of October 23, 2024. Further, M/s POGC was informed that Pab reservoir and associated reserves will be considered conventional.
Petroleum Division informed that subsequently, upon request of M/s POGC, re-evaluation of Rehman-8 ST-3 was carried out by another internationally reputed third party consultant, M/s IPR International, in accordance with Clause-5(h) of the Tight Gas (E&P) Policy, 2011.
The consultant concluded that: (i) the Pab gas-bearing reservoir in Rehman-8 ST-3 qualifies as a Tight Gas Reservoir under the 2011 policy;(ii) the reservoir cannot be produced economically using conventional production and completion techniques; and (iii) the reservoir can be commercially exploited using non-conventional techniques, such as high-performance perforation coupled with semi-massive hydraulic fracturing.
Based on detailed reservoir evaluation, M/s IPR International certified that the reservoir permeability is approximately 0.91 mili-Darcy, which is below the threshold of 1.0 mili-Darcy prescribed under the Tight Gas Policy thereby qualifying the reservoir as Tight Gas.
Petroleum Division further informed that the DGPC technical team raised certain observations on the consultant’s recommendations.
In response, the consultant provided the response and justifications which are part of the report. It is pertinent to highlight that certification of Tight Gas reservoirs is required under the Policy to be carried out by an independent third-party reservoir consultant.
In the present case, two internationally renowned consultants engaged through DGPC, have confirmed the tight nature of the reservoir, leaving limited regulatory discretion to disregard such certification.
Petroleum Division informed that furthermore, Clause-4 of the Tight Gas (E&P) Policy, 2011 stipulates that a company must demonstrate to die satisfaction of the Federal Government and the Provincial Government concerned that the reservoir cannot flow at commercial rates using conventional methods and requires non-conventional techniques for economic production criteria which have been duly satisfied in the instant case.
Petroleum Division informed that the summary was earlier placed before the ECC on February 18, 2026. However, the Cabinet Division, in an Office Memorandum (OM) of February 26, 2026, sought clarification on the observations raised by the Finance Minister’s Office of U.O of February 19, 2025.
The Petroleum Division furnished its response vide OM of June 18, 2026. Subsequently, the Cabinet Division, vide OM of July 6, 2026, advised the Petroleum Division to attach its response to the Finance Minister’s observations as an annexure and resubmit a fresh signed summary for the ECC.
Petroleum Division apprised that in wake of the Mustafa Impex Judgment of the Supreme Court, the term Government is construed as the Federal Cabinet, comprising the Prime Minister and Federal Ministries; therefore, approval of the Cabinet was sought for declaration of Rehman-8 ST-3 as a Tight Gas Well.
In light of the foregoing, the Petroleum Division solicited the approval of the ECC of the Cabinet for “declaration of the Pab reservoir in Rehman-8 ST-3 well as a Tight Gas Reservoir, in accordance with the Clause 4 of the light Gas (E&P) Policy, 2011.
After brief discussion, the ECC approved the proposal of Petroleum Division.
Copyright Business Recorder, 2026