Oil companies discover hydrocarbons in Kohat, PSX told

KARACHI: On Tuesday, companies in the country’s exploration and production (E&P) sector released new testing results from the Razgir-1 exploratory well, situated in the Kawagarh formation in Kohat district, Khyber Pakhtunkhwa.

Pakistan Oilfields Ltd (POL), Oil & Gas Development Company Ltd (OGDC), and Pakistan Petroleum Ltd (PPL) each issued separate notices to the Pakistan Stock Exchange (PSX), announcing the discovery of gas condensate in the Kawagarh-1 formation at the Razgir-1 well in Kohat district.

According to OGDC, the TAL joint venture includes OGDCL (30 per cent working interest), MOL Pakistan Oil & Gas Co BV (Operator) (10 per cent), PPL (30 per cent), POL (25 per cent), and Government Holdings Private Limited (GHPL) (5 per cent). Drilling began on January 9, 2024, reaching a depth of 3,773.98 metres TVD.

OGDC reported that the Kawagarh-1 Formation was tested successfully at a rate of approximately 16.4 million standard cubic feet per day (mmscfd) of gas and 159 barrels per day (bpd) of condensate, with a choke size of 40/64” and a wellhead flowing pressure (whfp) of 1,874 pounds per square inch (psi).

The company believes this discovery de-risks further exploration in the TAL Block, potentially enhancing the country’s supply of indigenous hydrocarbons and expanding its reserves base.

POL indicated that testing operations are ongoing to fully determine the well’s potential. The Drill Stem Test (DST) procedure, used to isolate and evaluate geological formations through the drill stem, will provide crucial data on pressure behaviour and fluid sampling to assess the likelihood of commercial production. POL cautioned that actual production may vary from test results.

PPL also reported a condensate discovery in the Kawagarh-1 formation at the Razgir-1 well in Kohat district.In related news, Pakistan’s oil production saw a 1.4 per cent year-over-year increase during FY24, driven by fields such as Chak 2, Pasakhi, Takhat, Lashari Centre, Bolan East, and Bettani. Additionally, production from Mamikhel South contributed to this growth, according to a research report by Arif Habib Limited.

Conversely, gas production decreased by 4.4 per cent year-over-year due to declines in fields like Qadirpur, Sui, Kandhkot, and Uch (affected by ATA at Uch Power Limited).During FY24, a total of 22 exploratory wells and 37 appraisal/development wells were drilled, surpassing the targets of 21 exploratory wells and 35 appraisal/development wells.