Deal signed to unlock tight gas reserves in Sindh

ISLAMABAD: The Oil and Gas Development Company Limited (OGDCL) and Schlumberger (M/s SLB) have signed a contract to assess tight gas prospects across the lower Indus Basin in Sindh.

This partnership is part of a strategic initiative to harness Pakistan’s vast tight gas resources, with an estimated 25.2 trillion cubic feet (TCF) of untapped reserves. The study will focus on identifying optimal locations for new wells and assessing existing wells for re-entry and hydraulic fracturing (fracking) to unlock gas from tight reservoirs.

OGDCL plans to drill 25 wells over the next five years, with an initial production capacity of 60-75 million standard cubic feet per day (MMSCFD), leading to an estimated reserve of 75-90 billion cubic feet (BCF) of gas. “This study will play a crucial role in shaping our drilling and production strategies, helping us meet the country’s growing energy demands,” said Ahmed Hayat Lak, Managing Director of OGDCL, during the contract signing ceremony on Tuesday. “By leveraging Schlumberger’s expertise, we are confident in accelerating the commercialization of tight gas resources on a fast-track basis.”

The initiative follows the Pakistan government’s introduction of incentives under its new tight gas policy of 2024. The policy offers a 40 percent premium over the 2012 price to encourage the exploration and commercial exploitation of tight gas, a key move to bolster the nation’s energy security. Schlumberger was selected after a competitive evaluation process involving 11 international bidders. The company’s proven technical capabilities and financial competitiveness made it the preferred contractor for this crucial study. Schlumberger’s expertise in unconventional resources is expected to provide valuable insights and enhance the efficiency of tight gas exploration in Pakistan.

OGDCL has already made strides in the tight gas sector, successfully producing its first tight gas well, Nur West-1, and using in-house expertise to frack additional wells. This new study, aimed at assessing tight gas potential in key areas of Sindh, will further build on OGDCL’s momentum in unlocking the country’s hydrocarbon resources.

The project is part of OGDCL’s broader strategy to increase domestic production of natural gas and reduce reliance on imported energy sources. By tapping into Pakistan’s significant tight gas reserves, OGDCL hopes to contribute to the country’s long-term energy needs while supporting economic growth. “This partnership underscores our commitment to driving Pakistan’s energy security by utilizing the best technologies and practices in resource development,” added Lak.

The comprehensive study is expected to be completed in the coming months and will form the foundation for future drilling projects and strategic decisions for OGDCL in the tight gas sector.