ISLAMABAD: In a new development, the drilling activities that kicked off with the budget of $75-80 million by joint venture headed by ENI in Kekra-1 well in Indus G Block located in Pakistan’s deep sea has braved a blow of mud loss owing to which investment on drilling is feared to touch the staggering figure of $100 million. The drilling had started with the hope of good news in the months of March and April.
EXXON Mobile is drilling the well and it was given the target to drill the Kekra-1 well by 5,800 metre deep in March, but when the drilling reached by 4,900 metres, a huge kick pressure was felt owing to which the process braved the mud loss, a relevant official at Petroleum Division told The News.
He said that mud loss means the loss of special chemicals used in the drilling process and because of this development, the exploration companies will have to again spud the well by 1500 metres. Keeping in view the new development, now the exploration companies have started side tracking process to continue its drilling process.
Addition Secretary and spokesman of Petroleum Division Sher Afgan confirmed that during the drilling activities, exploration companies sustained mud loss during the ongoing drilling of Kekra-1. However, he said that the sign of kick pressure is good as it determines that something is in the well.
Exxon Mobile, OGDCL and Pakistan Petroleum Limited (PPL) are the partners of the Joint Venture headed by ENI. Pakistan is eying massive oil and gas recovery in Kekra-1 well.
The Indus G Block was first given to OGDCL on August 12, 2006 but later on it was transferred to ENI on April 25, 2007 under Petroleum Sharing Agreement. Now the ENI as operator of four companies’ joint venture has started E&P activities in Pakistan deep sea. In case of huge discovery, Pakistan’s share in oil and gas discovery can go up to 70 percent depending upon the slabs mentioned in the agreement.
The country at present possesses original onshore recoverable gas resources of 57 trillion cubic feet (tcf) out of which 38tcf has been produced and 19.5 tcf is yet to discovered. The country has recoverable resources of oil that stands at 1.246 billion barrels but so far 0.899 billion barrels have been produced so far. In March, Exxon Mobil will send a specimen to Houston for examination. Similarly, ENI will send the specimen to Milan in March. From April to May, there will be a reasonable idea that this well contains oil or gas.
The discovery is anticipated to yield gas flows which can be as big as Sui field, with estimated reserves of 3 to 8tcf, or 25-40 percent of Pakistan’s total gas reserves.