Wood Mackenzie sees potential for big oil and gas finds in Pakistan

[Geek]

• Pakistan, Indonesia and PNG offer oil, gas prospects: WoodMac
• Energy explorers are getting more ambitious in Asia-Pacific

After a few fallow years, oil and gas drillers may be poised to unearth new reserves in the Asia-Pacific, according to energy consultant Wood Mackenzie Ltd.

Some of the world’s biggest explorers are drilling wildcat wells in places like Pakistan, Indonesia and Papua New Guinea this year, hoping to discover the massive deepwater finds that have largely been missing from the region since firms slashed spending following the 2014 oil price crash.

Wells to Watch
WoodMac sees potential for big oil and gas finds in Asia-Pacific

Source: Wood Mackenzie Ltd.

“Explorers are getting a little bit more ambitious in this part of the world,” Andrew Harwood, the consultancy’s Asia-Pacific upstream research director, said in an interview in Singapore. “These are huge companies with global portfolios; they’re not spending the money to drill unless they have a reason to be excited.”

Wood Mackenzie expects mergers and acquisition spending in the region to total about $8 billion in 2019 after growing 60 percent to $8.7 billion 2018. Activity will be focused around divestments in Southeast Asia by companies that want to focus spending on U.S. shale.

Here’s a closer look at the three Asia-Pacific prospects Wood Mackenzie is paying the most attention to:

Pakistan
A group including Eni SpA and Exxon Mobil Corp. will start drilling the Kekra-1 well this month in deepwater south of Pakistan. The country’s onshore natural gas production has been declining after years of under-investment, leading to the start of liquefied natural gas imports in recent years. Growing demand for the fuel has made the drillers more confident that they’ll be able to sell any gas from a sizable development, Harwood said.

Indonesia
Repsol SA could start drilling its Rencong-1X well north of the coast of Sumatra in the third quarter. The Spanish firm is seeking partners to invest and defray risks, Harwood said. Indonesia has leased out several blocks around Rencong, so a find could spur a ripple of activity. It’s also near the Arun LNG terminal, one of the world’s earliest liquefaction plants and now an import terminal to serve Aceh and Sumatra.

Papua New Guinea
Total SA could spud the Mailu-1 well in ultra-deep waters south of Papua New Guinea late this year. The French major is looking for oil, Harwood says, but even if it turns out to be gas it could be tied into LNG export infrastructure that the company is already planning to build in the country.

https://www.bloomberg.com/news/arti...atch-for-signs-of-asia-drilling-drop-reversal

 

[Pathfinder]

I pray that oil and gas is discovered and drilled. One thing that prevents Pakistan from breaking the shakkles is oil and gas imports.

 

[Aslan]

Let pray oil and gas is found.The results will not be know until drilling is complete and all the data has been analyzed.There is a lot of excitement which is understandable.Our newspapers have to calm down,some of them are saying that ExxonMobile is close to hitting huge oil reserves.Drilling a well is the last stage of finding oil/gas.First a prospective area is identified then data(seismic,gravity,magnetic etc) is collected and processed using computer software.This is then interpreted and the best location is chosen for drilling.

 

[FahadBhatti]

Is it 500 million barrels per year or the total?

 

[Mama g]

Hope we get lucky this time around because we really need it.

 

[NasNY]

Venezuela has Oil, Sudan has Oil.

Singapore does not have oil,

Japan does not have oil and had 2 atomic weapons dropped on it.

Just saying.......

 

[farooqak]

Is it 500 million barrels per year or the total?

i think total output

 

[FahadBhatti]

i think total output

I don't think its that much then , pakistan consumes about 73 million barrels per year already.

 

[farooqak]

I don't think its that much then , pakistan consumes about 73 million barrels per year already.

yes, it will be game changes in the sense, they we will have our own oil for next 5 years. So we still save 50 billion dollars. But this report doesn't mention the gas, that has Imran Khan excited as well

 

[Fawad Javed]

Venezuela has Oil, Sudan has Oil.

Singapore does not have oil,

Japan does not have oil and had 2 atomic weapons dropped on it.

Just saying.......

what about the claims made about coal found in Thar ? just saying :)

 

[Imran the legend]

KARACHI: Pakistan’s economy and the energy sector are currently betting on a new oil and gas discovery, as a consortium of foreign and local companies have started offshore spud work some 230 kilometres from Karachi where reserves are likely to be more than the Sui field.

An exploration fleet consisting of a major drilling ship, three supply vessels and two helicopters, started drilling work and have compiled a 12-hour preliminary report for onward submission to the companies experts, officials said.

The drilling would be carried out at Kekra-1 of the Indus G-block around 5,800 meters deep from the sea level, and was expected to be completed in a period of two months at a cost of $70-$80 million, to be contributed equally by the joint venture partners.

The operator of the block, ENI (an Italian company working in Pakistan’s upstream sector since 2000) has chartered Saipem 12000 rig/ship to drill the exploration well, located 230 kilometres southwest of Karachi.

The joint venture has been formed by ENI, ExxonMobil (that has come back to Pakistan after nearly three decades), Oil and Gas Development Company (OGDC), and Pakistan Petroleum (PPL) to spud the Kekra-1 exploration well.

Officials said the government was committed to extending all possible facilities to the companies interested in carrying out offshore drilling activities, including Customs duty exemption on the import of offshore drilling equipment, as Pakistan was in dire need of a major gas and oil discovery.

Experts believe there are massive hydrocarbon reserves offshore that would be sufficient for 50-year needs of the country.

Topline Securities in a report said companies and government officials were calling the exploration endeavour a possible “game changer” for Pakistan, which meets up to only 49 percent of its oil and gas need, in barrels of oil equivalent, through local production.

Analyst Nabeel Khursheed of Topline Securities said, “Some are calling the anticipated discovery to be even bigger than the Sui field (currently second biggest gas field after Mari with current production at around 400mcfd or 10 percent of total gas production), as the block was estimated to be rich in gas reserves.”

Gas flow from Sui when at prime stage was as high as 800 mmcf/day of gas, whereas the reserves of the field were around 10 to 12 trillion cubic feet. When found several decades back it was 7 to 8 trillion cubic feet of gas.

“By or before April 2019, the companies will be in a position to assess the potential hydrocarbon flows from this offshore drilling along with their economic viability. Setting up the necessary infrastructure to make hydrocarbon flows commercially available can take 3-5 years,” he added.

Offshore success could be a real game changer for Pakistan E&Ps, as offshore Indus G-block falls under the ‘Ultradeep’ Zone-0 price mechanism. It has been estimated that at Arab Light Crude $60/bbl, the gas from Indus-G would be priced at $7.2/mmbtu with additional $1/mmbtu as an incentive for first three discoveries in offshore area, as per Petroleum Policy 2012 (PP12).

The said zone was competitively priced, offering premium of 80 percent, in comparison to the average applicable pricing on onshore blocks under older policies.

However, there have been warnings too of another dry well, as has been experienced in the past. Pakistan has drilled 17 offshore wells to date and most failed to reach the target reservoirs.

The last offshore well Shark-1, a JV of PPL and ENI was spud in 2010 at exploration cost of $40-$45 million, and was found to be commercially unfeasible after three months of drilling.

If drilling in Indus G-block turns out to be unsuccessful, it could be another blow to Pakistan and its exploration companies that were in dire need of some major discoveries given fast depleting hydrocarbon reserves.
Source

 

[Bluebird]

There is only 10 to 12 percent success rate of offshore drilling world wide and pakistan is not different. Pakistan had 17 unsuccessful drills so far. May Allah shower with more blessings on pakistan this time. Amin
Even successful it wont b comercially available until 2024-5

 

[asifA1]

Pakistan govt shall catalyst all their momentum into assisting with finding of resources good for them to whomever, it will be a miracle.

 

[bhaibarood]

Is it 500 million barrels per year or the total?

Total minimum

 

[bhaibarood]

what about the claims made about coal found in Thar ? just saying :)

Sarmubar mand ki poori qoom ko cho... banadia like Engr waqar pani ki gari waley!

 

[Fawad Javed]

Sarmubar mand ki poori qoom ko cho... banadia like Engr waqar pani ki gari waley!

akher kab tak ye qoum Cho.... banti rehay gaye