Exploration, production's success ratio jumps from 31 to 55 percent

Exploration and Production (E&P) activities have increased by 40 percent during the current government's tenure as compared to Pakistan People's Party government, due to improved law and order. Sources in the Ministry of Petroleum and Natural Resources said that 90 discoveries have been made during the current government's tenure as the success ratio has jumped from 31 percent to 55 percent.
Several oil and gas exploration companies operating across the country have made these discoveries as a result of 319 drills carried out in the last three years. The current government, sources said, has so far added 944 mmcfd gas in the system out of which 466 mmcfd came from new discoveries and 478 mmcfd gas from existing wells in Balochistan, Sindh and KP.
Sources said the domestic oil production increased to 90,000 barrels per day (BPD), while imports amounted to 400,000 BPD. The refining capacity has been enhanced to 11 metric tonnes per annum (MTPA) whereas the consumption was 23 MTPA. Sources maintained that Pakistan is facing a huge gap between demand and supply of energy. Currently, its total gas production was four billion cubic feet per day (bcfd) against the demand of eight bcfd of gas, adding that the oil production stood at 10,000 barrels per day, while its requirement was seven to eight times higher than the production. During the period, 46 new exploration licences, covering an area of 94,608.85 sq kms had been awarded to accelerate exploration activities in the country.
The Ministry's drive against various non-performing oil and gas exploration companies is also being carried out. The Ministry issued notices to 17 non-performing E&P companies and inactive licence-holders in the last three years for their failure to start exploration work as per the agreement. The Ministry has yet to initiate action against these oil exploration and production companies which obtained licences in 1999 but are yet to start their exploration activities.
The government is still making efforts to pave the way for the exploration of unconventional resources like tight gas, shale gas and low BTU gas among others. The government owned Oil & Gas Development Company Limited (OGDCL) has made three major discoveries of oil and gas from its exploratory wells namely Gundanwari-1, Mithri-1 and Khamiso well-1, which are located in Districts Ghotki and Khairpur of Sindh Province. These discoveries resulted in an increase of 30 MMCFD gas in total output of the country.
OGDCL holds 33 percent of exploration acreage of Pakistan and accounts for 55 percent of oil and 28 percent of gas being produced in the country.