ISLAMABAD:
In a bid to ease looming energy crisis by exploiting indigenous reserves, Oil and Gas Development Company Limited (OGDC) has planned to invest $5.8 billion to drill 137 wells under strategic plan 2011-12 to 2015-16.
Out of drilling 137 wells, OGDC has projected that it will make discoveries of oil and gas from 16 wells. The oil and gas explorer hopes to get 48 Million Stock Tank Barrels (MMSTB) oil, 8 MMSTB condensate and 1.6 Billion Cubic Feet Gas per day (Bcfd) from new discoveries.
The exploration process According to a plan available with The Express Tribune, OGDC has decided to invest $963 million to drill 27 wells in the ongoing financial year 2011-12. Out of these 27 wells, OGDCL hopes to discover oil, gas and condensate from four wells. The new discoveries are projected to produce nine MMSTB oil, 1.50 MMSTB of condensate and 150 MMCFD of gas.
According to the plan, OGDC will invest $1.317 billion on the drilling of 31 wells in the coming financial year 2012-13.The discovery of oil, gas and condensate is expected from two wells only which will yield 9MMSTB oil, 1.50 MMSTB condensate and 105 MMCFD gas.
In the financial year 2013-14, OGDCL will spend $969 million on the drilling of 26 wells and the company has estimated that it will discover oil, gas and condensate from four wells. OGDC estimates and addition of nine MMSTB oil, 1.50 MMSTB of condensate and 450 MMCFD of gas during the year under study.
In year 2014-15, the company will invest $1.23 billion on the exploration activities of 26 wells and discoveries of oil and gas reserves are expected from four wells. The company hopes to the discoveries will yield 10 MMSTB of oil, 1.50 MMSTB of condensate and 655 MMCFD of gas.
And finally, in the year 2015-16, OGDC will invest 1.35 billion dollars to drill 27 wells. However the company estimates that it will only strike gold in two wells which will yield 11 MMSTB oil, two MMSTB of condensate and 350 MMCFD of gas.
Published in The Express Tribune, August 31st, 2011.
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@ bilal... This type of information is wayy too far from companies strategis plans, these type of articles are known to be a valuable information for investors.
@tariq Please read as it say's "Exploration Processes in the news" which (I hope you do understand working in an oil company) includes cost from bidding for the area, seismic acquisition (2-D, 3-D), interpretation (basin modelling, play maps), and then drilling.
The thing what bother's me is how many wild cat well's they are going to drill?
Every time stock market rises by few hundred points, OGDC announces a discovery to jack the stock price higher. Since privatisation OGDC have announced hundreds of wells like these but the production never jumped above 40000 barrels. All iz well.
By most standards the cost per well makes no sense --- it's twice what even a complex/difficult well would cost to drill --- so where's the money going?
@Tariq does it include the food and living expenses, i guess no , Ogdcl has a recent policy of in house solutions . I am not sure about the services they will be doing for this amount of money. I guess if they are totaling all expenses from lodging etc then this is justified. We can't comment till we see the the whole proposal.
@Bilal:
Pakistan has a lot of potential, they need to drill thousands of wells as the fields are small, Pakistan can at the least produce its own demand but only by drilling lots of wells
@Ovais:
I happen to be a Petroleum Engineer who has drilled hundreds of wells. 900 million is a lot of money to drill a few wells. The wells in the US with 2 mile laterals cost no more than 6 million dollars at depths ranging from 10-15000 feet.
These wells OGDC is drilling are onshore not offshore.
These are company KPO or strategic plans. They are not meant to be published in the news paper, as some one not belonging to oil industry will not understand.
Being a geologist myself, and having an idea of remaining hydrocarbon potential of the country, we must venture out in the international exploration.
MPNR must take initiative on this.
@Tariq: Do u even know about the oil sector. 900 million is a very small amount considering the amount of fuel projected and ogdcl has a policy of inhouse solutions mostly so the costs will be high but since they dont pay any other company the profit will be higher
How do you spend 900 million dollars to drill 25 wells, these are the most expensive wells in the world
is this going to affect our energy bill big time?