ExxonMobil invited to start onshore exploration as well

US company is already searching for hydrocarbons in an offshore well

ISLAMABAD: Year 2019 will be good for all as ExxonMobil has started drilling an offshore well, said Petroleum Minister Ghulam Sarwar Khan and invited the US oil and gas company to engage in onshore exploration as well.

“We will make things easy for international investment. For this purpose, duties and taxes have been waived on the import of drilling equipment,” he said during a meeting with ExxonMobil Chief Executive Officer Irtiza Syed on Wednesday.

The company CEO briefed the minister about the progress on exploration work at the Indus-G block. “Right now, the depth of 1,900 feet has been reached; it is an ultra-deep exploration,” he said. The company has set the target of reaching a depth of 5,500 feet and expects to complete exploration by March or April.

In March, ExxonMobil will send a specimen to Houston for examination. Similarly, Italy’s energy giant Eni will send the specimen to Milan for inspection. Between April and May, they may be able to come up with a reasonable estimate of the potential oil and gas reserves in the well.



The well is anticipated to produce gas flows which can be as big as the Sui field in Balochistan, with estimated reserves of three to eight trillion cubic feet or 25-40% of Pakistan’s total gas reserves.

Of late, oil and gas exploration and production companies of Pakistan, along with international partners, have ventured into the promising offshore Indus-G block for deep-sea drilling.

Eni, the operator of the block, has chartered rig ship Saipem to drill the Kekra-I well, which is 230 km southwest of Karachi. Eni, working in Pakistan since 2000, is searching for hydrocarbon deposits in the well along with joint-venture partners ExxonMobil, Oil and Gas Development Company and Pakistan Petroleum Limited.

The exploration cost is estimated at $75 million with more than 200 people currently on board the ship. If the gas is discovered, Pakistan can use it for the next 25 to 30 years. Later, ExxonMobil is expected to drill more wells over the next few years.

Published in The Express Tribune, January 17^th, 2019.

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