oil and gas exploration in pakistan.

Oil contributes more than 42 to total energy supply.
The discovery of new oil fields in different parts of the country has brought local production to 57,880 barrels a day (bpd)
So, of our total demand of about 250,000 barrels a day, it accounts for about.
Oil production is estimated to increase from 15.
1985 005 million barrel86 to 20.
0. 691 billion barrels in 1993
94 as shown in the following table1.
Pakistan has 45 billion barrels of oil reserves to meet energy demand in 300400 years.
According to a report submitted by a famous geologists to Prime Minister Bhutto, the country has a large amount of oil and gas reserves.
However, the pace of exploration is not consistent with the priority requirements of these energy needs.
Geologists say Pakistan\'s oil and gas reserves are small, but oil fields in the batin region produce no less than 20,000 barrels a day.
Experts say there is a lot of deposits on the coast of Sindh province, especially in Markland.
However, there is still a lot to be improved on the overall performance of the exploration.
In the past 20 years, Pakistan has dug only nine oil wells, far behind other developing countries.
Average oil production in 199394 (July to March)
880 barrels of oil remaining per day (bpd)
, Indicating a decrease of 6-compared to the level of 61,390 barrels/day reached in 1991-92.
Oil production is affected by natural depletion of oil fields in the north and south.
To encourage more oil and gas exploration, the new oil policy provides for simplified procedures and regulatory procedures related to the issuance of exploration permits.
However, since 1990, exploration permits for several areas of balochistan issued to Esso, Lasmo, Tullow and OGDC have been in force majeure due to safety issues.
As far as Murply Oil, another company, is concerned, the company has been suspending its exploration operations under the leadership of forcemajeure since February 1979.
New oil policy despite being third in recent years
One was announced by the government of Nawaz Sharif, and the other was onOctober 1993-
This new policy is different from previous policies in three important aspects.
First of all, it gives equal weight to all aspects from exploration refining, oil and gas to commercial exploration, storage, transportation and distribution.
Second, all concessions will be awarded through competitive bidding under standardized conditions to ensure transparency in all transactions.
Third, a high mechanism
The policy itself has built-in level monitoring of implementation.
An oil regulatory commission is being set up to deal with problems that may arise from time to time.
In addition, a ministerial committee will be set up to meet at least once a month to ensure the smooth implementation of the policy.
These measures demonstrate the government\'s desire to quickly attract significant investment into the sector and overcome the energy crisis at an early date.
The new policy provides the usual financial incentives, such as imports.
Tax exemption, surcharge and license fees-
Provide machinery, equipment and related materials to all new oil and gas exploration, development and distribution enterprises.
It also promises to give in, although it is not specified in the policy and may make a decision on a case --by-
It provides a case basis for the expansion and modernization of existing refineries.
To stimulate confidence in policy continuity, the government will be involved in all exploration efforts, holding 5% shares in all new businesses established after January 1, 1994.
If production instalments are successfully completed within five years, the government\'s resulting expenditures will be repaid.
Share of post-government
The business discovery business will be between 15 and 25 in different regions, and the country will be divided into three regions.
This policy aims to develop a local base for oil and gas exploration and production by offering attractive rewards in the form of rewards.
After the commercial discovery, the government\'s own share was 5%, and local investors sold foreign exchange earnings, provided he invested at least five percentage points in exploration costs.
The price of crude oil will still be linked to the price of crude oil as the previous policy, and the adjustment of quality differences continues.
Will ensure a minimum return rate of 25 for new refineries based on local crude oil
Before 2000, the capital deducted taxes for eight years.
However, it can be emphasized that incentives under the new policy aimed at attracting foreign and local private investment should be extended to companies operating in Pakistan, these companies are all engaged in commercial production of oil and gas, not just selective.
Some people think that the existing company is already very good.
Equipped with necessary organization
Expensive machines and equipment, compared to new entrants in the field, are more capable of strengthening innovation efforts, and they can start from scratch understandably, and it will take five to seven years to put into production.
Pakistan has exported 15,000 barrels of crude oil per day.
The reason is that the country has no refining capacity for Badin crude oil containing high wax.
In the batin block, only one oil company found oil in 62 wells, which produced more than 18,000 barrels a day.
But for the past three or four years, most of this oil has been unused and dormant.
Recently, the work of the hydrogenation plant to be set up in Karachi has already begun, and it is hoped that the plant will begin operation in 1996.
That means oil found.
About a barrel a day)
Will remain unused for several years.
It would be better for the government to increase the current export of 15,000 barrels per day to 25 000 barrels per day, as it makes no sense to keep the oil found idle for a long time.
This is indeed a huge loss for the country.
Export of Polish products in 1993-
It was approximately $80 million.
Imports of oil and petroleum products amounted to $1396.
1 million, reaching 16.
33 of total imports in 19-9394.
This ratio is 20.
19 percentage points in 199091.
The decline in imports may be due to an increase in local products.
If we put the growth rate of energy demand and foreign exchange revenue (9% and 6.
5 respectively)
In the next five years, China will spend more than half of its foreign exchange reserves on other important development and infrastructure needs.
Estimates for fiscal 1997
98, when the export target reached $13.
8 billion, total oil imports will soar to $5 billion.
2% of total imports.
This underlines the urgency of prioritizing the country\'s refining capacity.
Although the import costs of oil and oil-related products are so huge, the demand for energy exceeds the demand for commercial energy per capita in Pakistan, which is still very low
A tenth of the world average and half of other low-income countries.
Oil import bill 1993
$94 is $1396. 1 million.
Imports of pol products over the past eight years are as follows: Pakistan\'s oil reserves will increase by seven years, and natural gas reserves will increase by 15 years, depending on the pre-storage of the country\'s oil and gas production.
According to a survey conducted by foreign agencies, Pakistan will have to face serious challenges to its energy security, and more oil and gas discoveries will be made in the country by the end of 1990.
Survey shows: \"Self
By 2000, the sufficiency rate of oil will decline from its current rate to only ten per cent. Self-
By 2005, gassufficiency will decline to 100% from the current 60%.
As of March 1994, Pakistan\'s limited oil reserves are estimated to be 197 million barrels, and although the country has a large deposit basin, the discovery of a large oil field has so far surpassed that of Pakistan.
Non-natural gas recoverable reserves
The associated and associated gas from the oil field is estimated at 542 billion cubic meters.
Pakistan currently produces 57,880 barrels per day of oil and 1 barrel of oil. 5 bcf of gas.
About 46 oils.
Production in the north and south of the country ranges from 200 barrels per day to 20,000 barrels per day.
There are 20 gas fields, mainly in the south of the country.
Oil exploration according to drilling target of 46 wells in fiscal year
As of March 1994, a total of 94 Wells had been drilled, 18 had been drilled in the public sector, and 24 had been drilled in the private sector.
Again, six new discoveries in oil and gas (
2 oil, 4 gas)
Made in July. March 1994. Break-
The down-well situation of these wells is given below: according to the risks and costs involved in the new policy, dividing the country\'s possible oil-bearing zoning into three categories is a step in the right direction.
As a result, high-risk and high-cost regions have gained better incentive rates than those with relatively low costs.
At the same time, on the basis of international oil prices, for new explorers, gas pricing is also a bold step in encouraging foreign companies to increase their efforts and increase investment flows.
Third, the government\'s share of oil production has fallen sharply from the previous 25% to the highest level, depending on the discovery and commercial operation of new wells in specific regions, this is also a very free way to attract foreign and local private investment.
Texas Pakistan Corporation
Subsidiary of Texas United Petroleum CorporationUSA)
Three oil and gas fields were found in the batin concession area. i. e. Tangri No.
2, Liari Deep No. 1 and Zaur No. 1.
Production is expected to start in the first quarter. The Tangri No.
2 exploration wells at a rate of 1,704 barrels per day at 16-
64 inch choke, 850 pounds per square inch (PSI)
After the tubing pressure in the lower goru formation between 7, 80 and 7,192 feet, the source is detailed.
Ali Shen
1 exploration well was drilled to test the deep layer below the Liari oil area in the upper sand of the luoloru group.
The well is also tested at a rate of 7 m cubic feet of natural gas and 188 barrels of oil per day at 32/64 chokewith 1,700 PSI, which is in formation 8,828 to 8,883 feet.
The third discovery, Zaur No.
1 exploration well, not tested before evaluating the potential of the well to assess the oil margin.
The newly discovered reservoir of the parivali oil and gas field will produce 2000 barrels of oil per day and 15 mcfd of natural gas, and the annual foreign exchange reserves will reach US $23 million.
As can be mentioned here, the Commonwealth of Independent States (CIS)
In particular, Muslim countries are opening up their investment concession areas, which may be the most attractive area for international companies, as they all know that there is a large amount of oil gathering.
Pakistan must compete with this situation.
With international oil prices falling and these companies not keen to open up many new exploration in the current economic environment, it is rash to expect something to happen quickly in Pakistan.
Pakistan does not have a large oil field and although Sui is a natural gas field, Pakistan should pay for natural gas at the international level.
In addition, many countries such as Indonesia have improved their services to oil companies.
This is where the new oil policy can turn things around, and Pakistan must give oil companies a better understanding of their oil policy from a practical point of view \".
The Texas alliance is looking for a new franchise area.
The company plans to double its capital expenditure on exploration from $10.
$6 million to $20.
3 million that year.
The company drilled a total of 114 exploration and identification wells in the batin concession area.
Among them, 62 were successful.
The joint venture plans to drill 15 exploration wells at 1995.
During the 1994 period, the joint venture produced an average of about 19,800 barrels of oil and 0. 17 billion cubic feet of natural gas per day, accounting for about 33 of Pakistan\'s total domestic oil production and about domestic gas production.
In Pakistan, the chance to find oil in 310 square feet of kuchlann.
Km salt marsh in the south of Tharparkar District is bright.
In view of this, Pakistan has announced the a320-
Km exclusive economic zone, which should include parts of the theRann of Kuchi.
However, in the absence of a maritime boundary between India and Pakistan, any exploration efforts in the region, other than another focus of debate, will have an impact.
There have been numerous rounds of negotiations between the two countries, but the two sides have
The dividing line that was rejected at Rann ofKutch seems to be a big difference.
Since both India and Pakistan have plans for oil exploration, it will be their own business.
Delay and facilitate an early settlement of the maritime boundary issue.
The fact is that while Pakistan\'s soil structure has the same geological features as its neighbors, we are far behind in terms of oil production.
The estimated oil reserves we have identified are 35-
40 billion barrels.
According to oil experts, if only potential reserves are found, Pakistan will become an oil exporter this year.
However, oil exploration requires an investment of $20 billion to enable the countrysufficient.
For domestic use and development purposes, the demand for oil is increasing every year, about ten per cent, which requires more attention to the exploration and exploitation of local deposits, especially drilling.
Relatively speaking, a small number of wells have been drilled since the establishment of Pakistan, although the alarming proportion of the country is very encouraging.
The ratio here isand-a-
Compared with the international ratio of 13 to 1, half well is more than one well.
Speed up work is essential, but do not slip in development.
The success of this industry depends to a large extent on it, and the driving force of development actually depends on it.
An oil policy was announced in November 1991, providing sufficient incentives for private sector and foreign investors to explore oil and gas, but this does not yield any positive results.
However, caretakergoverment provides an attractive package of economic initiatives in its new oil policy, creating a strong local base for production, prudence and discrimination, and eliminating others
It is hoped that the new policy announced in February 1994 will enable foreign investors to participate in Pakistan\'s oil production in a huge way.
At present, 22 local and foreign companies are engaged in oil exploration in the country, covering an area of more than 23,500 square feet. kms.
In addition, the government is considering 29 additional applications to grant oil rights.
Agreement with Uniko: The Pakistani government and the United States signed three oil concession agreements in February 7.
Under these agreements, Uniko obtained three oil exploration permits for Block 32970-1 (Tarind)and Block No. 3070-3(Munda)
It covers 6291 and 5698 square kilometers of Multan, muzaffarh and D, respectively. G.
Khan District and Block 13070-4 (Leiah)
Covering 5735 square kilometers of the Leiah district of Punjab province.
The company will conduct earthquake and gravity surveys and drill exploration wells during its initial three-year term, with a minimum financial commitment of more than $6 million.
Uniko is a global oil and gas producer with major operations in the United States, Thailand and Indonesia.
Agreement with shell: Shell Pakistan has signed a 3-
Annual Survey and Research on the prospect of Yantian oil in southern Islamabad.
According to the agreement, the government of Pakistan will be interested in the participation of 10 per cent of concession Holdings, which can be increased to 15% at the development stage.
Agreement with POL: on June 1994, three oil concession agreements were signed with Pakistan Petroleum joint venture
Oil Exploration Co. , Ltd. in three parts of Punjab province.
Exploration will be in 3372-2 (Ahmadal)
Area of 466 square meters. kms.
In Attock District, 3,372nd-3 (Minwal)covering 110. 75 sq. kms.
And block2871 in the District-1 (Cholistan)
Area of 2990 square meters. kms.
In Bahawalpur andRahimyar Khan district.
The joint venture intends to invest at least Rs.
0. 413 billion in the first three years, seismic data of 700 kilometres were obtained and three exploration wells were drilled.
It can be mentioned that Pakistan Oilfield Co. , Ltd. found il in the Pariwali exploration well of Ahmadal Bock, 65 km west of Islamabad.
According to preliminary estimates, the output of the parlivali oil well will reach 2000 barrels per day.
The price of the parriwal oil well is $6. 5 million.
Another $8 million will be used to deliver oil and gas to other facilities in refineries and SNGPP systems.
The parivali well will contribute $23 million in foreign exchange, located at the discovery well 10 km kilometers north of the haoul field discovered on 1915 (
First commercial discovery in Pakistan)
Originally, the privali well was drilled in 1986 by Westerners in Pakistan.
Pohl regained the concession.
Explain the earthquake and decide to re-
Enter the well of parivali.
Pricing policy the government has introduced an import parity pricing formula for investment enterprises in Pakistan, effective from July 1, 1992, which requires investment enterprises to purchase crude oil and obtain sales revenue of products on the basis of import parity, under the formula
The refinery is allowed to operate within the minimum and maximum range after deducting the tax paid
Capital increased by 10 per cent and 40 per cent respectively.
In March 1994, the government announced the oil policy, providing various incentives for the oil refining industry.
These are the 10-limit.
40% the return on existing refineries will be canceled, provided that an agreement covering the development and expansion plan is signed with the Ministry of Oil and natural resources.
In light of the above, rel is currently reviewing various options available, including a reassessment of the Foster Wheeler plant expansion study conducted in 1990 --
In order to have a dialogue with the government on oil policy.
Similarly, the Pakistani oil company submitted plans for upgrading and expanding the refinery and asked the government to consider an agreement to remove restrictions on returns.
Lubricating base oil has been liberated from control, and NRL sets the price in the competition with imported base oil.
However, due to the development surcharge imposed by Rs on feed stocks, excessive taxes on feed stocks remain a source.
June 1993 was RS 236 per metric ton.
In August 1993, it was RS 494, a slight decrease.
32 in January 4, 1994.
So NRL paidRs.
0. 305 billion as the feed inventory tax of 1993-
Compared with Rs, 94.
0. 133 billion last year. Ex-
As crude oil prices fell, the government lowered oil refining prices in January 1994.
Oil price in December 1993.
At the same time, starting in April 1994, crude oil prices rose again.
Fortunately, the former
The government did not revise the price of the refinery accordingly.
The new oil policy announced by the refinery\'s performance government in 1994 included incentives to encourage the private sector to accept the prevailing import prices at that time.
In addition, based on the local new refinery, or providing a clear logistics advantage, if established by 2000, the minimum return on net taxable capital for 8 years will be guaranteed to be 25%.
Under the new policy, refineries can also import crude oil from their chosen source, provided that the prices of these imports are not higher than those negotiated by the governmentto-
Government deals.
The refinery is also free to sell their products to any oil marketing company.
Attock Refinery: the total throughput of the refinery is 8,900,409 barrels (1. 161 million M. tons)
In contrast, the itsnameplate capacity is 10,065,000 barrels (1. 330 million M. Tons). Atotal of 8.
97 million barrels of crude oil (1993:9.
56 million barrels)
The company received six from 16 different fields.
2% lower than last year\'s receipt.
Crude oil revenues fell from multiple sectors, but this decrease was largely offset by an increase in revenues from Missa Kiswal and Sadkal.
Net reduction of sashimi 0.
0. 522 billion barrels.
For the year ended June 30, 1994, sales of Rs were4676.
Compared with the sales of Rs, 81 million. 5156.
The previous year was 34 million per cent, a decrease of 9 per cent. 30%.
Pre-tax profit for the same period is Re. 65.
Compared to Re 31 million. 80.
61 million per cent in 1993, indicating a decrease of 23 per cent. 43%.
Earnings per share are calculated as Re. 4.
Compared with Rs in 03. 4. 00 in 1993.
Price/earnings ratio of Re market. 132.
00 to 33: 1.
The company\'s upgrade and expansion plan is :(i)
A catalytic reforming device with a capacity of 5,000 bpsd is installed for the production of high-grade vehicle gasoline with cetane ,(if)
Replace the crude oil unit with processed crude oil to produce fuel products of 6,000 bpsd and road grade asphalt and (iii)
Improve the processing capacity of crude oil 10-
The 15000 bpsd is modified by the existing 20,000 bpsd crude distillation unit.
National refinery: NRL processed 712,221 tons of local crude oil in the past year, compared with 660,128 tons in the past year.
The average daily utilization rate of local crude oil is 15,000 barrels, thus reducing the foreign exchange demand for imported crude oil in part.
The product portfolio is achieved according to market demand, and the government requires the production of insufficient products to the maximum extent.
The output of lubricating oil base oil was 790 metric tons, compared with 192,944 metric tons before.
For the year ended June 30, 1994, sales of Rs were13982.
Compared with Rs 70 million. 14155.
The previous year was 48 million, down 1 in nominal terms. 22%.
Pre-tax profit for the same period is rupee. 633.
Compared with Rs 40 million. 589.
Last year, 20 million, an increase of 7. 50%.
Earnings per share reached Rs. 5.
Compared with Rs, 30 in 1994. 4. 36 in 1993.
Implementation of energy-saving projects (Phase II)
During the year, the World Bank continued to provide funds.
Work schedule is affected due to heavy rain.
The items are as follows:)
The capacity of processing additives for flat panel forming devices is enhanced.
Thousand tons of naphtha per year.
It is expected to be completed at the beginning of 95. b)
The process transformation of the old lubricating oil refinery is carried out to improve the energy utilization efficiency.
Completion is currently expected in March 1995. c)
7 self-generating power.
Use the high pressure steam available inside to provide 5 mw power.
The project is now expected to be completed by mid-1996.
Upon completion of these projects, NRL will ensure a stable power supply for one of its units and significantly save on energy conservation, production costs and improved profitability.
Pakistan refinery Co. , Ltd. : the throughput achieved in the year was 2,436,943 metric tons, the highest output achieved by the company since in 1974.
This includes 556,438 metric tons of domestic crude oil.
In the year ended June 30, 1994, sales rose by 0 in nominal terms. 23%from Rs. 10,488.
RS 67 million in 1993. 10,733.
1994 15 million.
Pre-tax profit for the same period is rupee. 101.
Compared to Rs, 74 million. 95.
45 million in the previous year, an increase of 6. 59 per cent.
Earnings per share are calculated as Rs. 3.
1994 compared to Rs. 2. 86 in 1993.
The company continues to purchase Iranian light and upper ZakumCrudes from Iranian National Petroleum Corporation and Abu Dhabi National Petroleum Corporation respectively.
As in the past, the crude oil was shared with the national refinery Co. , Ltd. and brought back the Arab Light crude oil with the aim of producing a crude oil mixture that is beneficial to both the refinery and the country.
In addition to importing crude oil, local crude oil was purchased in accordance with the pricing terms approved by the government.