Massive oil, gas reserves found in Pakistani waters: senior security official

[BouncerGuy]

Massive oil, gas reserves found in Pakistani waters: senior security official

A substantial deposit of petroleum and natural gas has been discovered in Pakistan’s territorial waters, a cache so large its exploitation could change the country’s destiny, DawnNewsTV quoted a senior security official as saying on Friday.

According to the official, who is understood to be privy to the development, a three-year survey was undertaken in collaboration with a friendly country to verify the presence of the oil and gas reserves.

The geographic survey has allowed Pakistan to identify the location of the deposits, and the relevant departments have informed the government of the resources found in Pakistani waters.

Terming it an effort to benefit from what he called the ‘blue water economy’, the official said that proposals for bidding and exploration were being studied, meaning that the exploration work can be started in the near future.

However, he said the work of digging wells and actually getting oil out could take several years.

But the ‘blue water economy’ can yield more than just oil and gas; there are several other valuable minerals and elements that can be mined from the ocean.

The official said that taking the initiative and acting quickly could help turn around the country’s economic fortunes.

Some estimates suggest that this discovery constitutes the fourth largest oil and gas reserves in the world.

Currently, Venezuela is thought to be the leader in oil reserves with around 3.4 billion barrels, while the US has the most untapped shale oil reserves.

Saudi Arabia, Iran, Canada and Iraq constitute the rest of the top five.

While talking to DawnNewsTV, former Ogra member Muhammad Arif said even though the country should remain optimistic, there’s never 100 per cent certainty that the reserves would be discovered as expected.

When asked if these reserves are enough to meet the country’s energy needs, he said it depends on the size and recovery rate of the production. “If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil.”

However, he cautioned that it is a “wishful thinking” until the prospects for the reserves are analysed and the drilling process begins.

He pointed out that exploration alone required hefty investment of around $5 billion and it might take four to five years to extract reserves from an offshore location.

He said if the exploration resulted in the discovery of reserves, then further investment would be needed for wells and laying down the infrastructure to extract the reserves and produce fuel.

DAWN NEWS

 

[FearlessRoar]

But Pakistan does not have enough resources and equipment to extract it, and Western powers will definitely exploit this.

 

[mazkhan]

Now you know why balochistan terror has increased , using local traitors and 2 faced people like mahrang baloch sitting In Norway.

So taliban khan was right all along about significant resources in the sea but was deliberately sabotaged by western company exploring .

Just get the Chinese and russians on board pronto .

 

[DeadlyVenom]

We've heard this before. Not sure how credible this news is.

 

[gani999]

Wasn't there something like this reported a few years ago, and it all turned out to be nothing?
It will be good if it is true and it benefits the people of Pakistan. However, given Pakistan's external debt, it may well get taken over by China or some other foreign power.

 

[Sherazkhalid]

Good news for the establishment not the people, it will all be looted and country will stay as is or get even worse.

 

[RidiculousMan]

But Pakistan does not have enough resources and equipment to extract it, and Western powers will definitely exploit this.

Most likely establishment will sign off for some billion dollars. Majority of it will go in their pockets and then that'll be it.

 

[RidiculousMan]

Wasn't there something like this reported a few years ago, and it all turned out to be nothing?
It will be good if it is true and it benefits the people of Pakistan. However, given Pakistan's external debt, it may well get taken over by China or some other foreign power.

We've been hearing this for decades now. Specially from Balochistan region who mineral rich it is. But all happens with the nod of the above powers.

The common man in the country has no stake in it. Nor will it benefit from any dealings done above the table.

 

[Bewal Express]

Massive oil, gas reserves found in Pakistani waters: senior security official

A substantial deposit of petroleum and natural gas has been discovered in Pakistan’s territorial waters, a cache so large its exploitation could change the country’s destiny, DawnNewsTV quoted a senior security official as saying on Friday.

According to the official, who is understood to be privy to the development, a three-year survey was undertaken in collaboration with a friendly country to verify the presence of the oil and gas reserves.

The geographic survey has allowed Pakistan to identify the location of the deposits, and the relevant departments have informed the government of the resources found in Pakistani waters.

Terming it an effort to benefit from what he called the ‘blue water economy’, the official said that proposals for bidding and exploration were being studied, meaning that the exploration work can be started in the near future.

However, he said the work of digging wells and actually getting oil out could take several years.

But the ‘blue water economy’ can yield more than just oil and gas; there are several other valuable minerals and elements that can be mined from the ocean.

The official said that taking the initiative and acting quickly could help turn around the country’s economic fortunes.

Some estimates suggest that this discovery constitutes the fourth largest oil and gas reserves in the world.

Currently, Venezuela is thought to be the leader in oil reserves with around 3.4 billion barrels, while the US has the most untapped shale oil reserves.

Saudi Arabia, Iran, Canada and Iraq constitute the rest of the top five.

While talking to DawnNewsTV, former Ogra member Muhammad Arif said even though the country should remain optimistic, there’s never 100 per cent certainty that the reserves would be discovered as expected.

When asked if these reserves are enough to meet the country’s energy needs, he said it depends on the size and recovery rate of the production. “If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil.”

However, he cautioned that it is a “wishful thinking” until the prospects for the reserves are analysed and the drilling process begins.

He pointed out that exploration alone required hefty investment of around $5 billion and it might take four to five years to extract reserves from an offshore location.

He said if the exploration resulted in the discovery of reserves, then further investment would be needed for wells and laying down the infrastructure to extract the reserves and produce fuel.

DAWN NEWS

Isn't this announcement an annual thing.

 

[Cpt. Rishwat]

Modi should take the initiative and invite Sher-e-Punjab for cordial talks to discuss opening of trade options and beat China to the punch. Nawaz and his party are always open to some under the counter changing of funds, why not use hindutva nous and show how they are masters of the game?

 

[Kianig89]

So after Rekodek and Kekra we get Sea resources , no wonder the country is in complete mess

 

[Champ_Pal]

On one hand it says, they found the biggest oil deposits as though it is confirmed. Then the article says they cannot confirm it yet.

Playing with the emotions of people in a few lines.

 

[The Bald Eagle]

Isn't this announcement an annual thing.

I just hope it's turn out to be true. Have heard such news before though

 

[Bewal Express]

I just hope it's turn out to be true. Have heard such news before though

Let's hope it's true. Our establishment is short of cash these days and this may give them enough to buy properties in Dubai, Paris etc

 

[BouncerGuy]

Why No Major Oil Company Is Rushing To Drill Pakistan's Huge Oil Reserves

A long exploration effort has led to the reportedly massive discovery of oil and gas reserves in Pakistan’s territorial waters, a cache so large that it is said it could change the economic trajectory of the beleaguered country. But no one is rushing to drill in Pakistan, and experts are concerned about jumping the gun.

According to DawnNewsTV, the three-year survey was undertaken to verify the presence of the oil and gas reserves. “If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil,’’ former Ogra (Oil and Gas Regulatory Authority) member Muhammad Arif told DawnTv.

However, Arif has cautioned that it would take years before the country could be able to exploit its newfound fossil fuel resources, adding that exploration alone required a hefty investment of around $5 billion and it might take four to five years to extract reserves from an offshore location.

Pakistan covers 29% of gas, 85% of oil, 50% of liquefied petroleum gas (LPG), and 20% of coal requirements through imports, according to the Economic Times. Pakistan's total energy import bill in 2023 clocked in at $17.5 billion, a figure projected to rise to $31 billion in seven years, as per an Express Tribune report. The new discovery is no doubt a big boon for the struggling economy.

Since 2021, Pakistan has been hit with mounting debt and skyrocketing inflation, with inflation hitting nearly 30%. Meanwhile, the economy only expanded 2.4% in 2023, missing the 3.5% target. This has forced the country to rely heavily on foreign aid, which is often elusive. In January this year, Pakistan sought $30 billion for gas production to cut its fuel import bill.

According to Pakistan’s Energy Minister Mohammad Ali, Pakistan has 235 trillion cubic feet (tcf) of gas reserves, and an investment of $25 billion to $30 billion would be enough to extract 10% of those reserves over the next decade to reverse the current declining gas production and replace the import of energy.

The persistently high inflation could push Pakistan over the edge, "There is no precedent in Pakistan’s history of such a long and intense spell of inflation gripping the country," columnist Khurram Husain has written in Dawn.

A Game-Changer? Maybe.

Although Pakistan's hydrocarbon resources are yet to be quantified, some estimates suggest that this discovery constitutes the fourth-largest oil and gas reserves in the world. This could be a potential game-changer in the region’s energy flows.

Back in July, S&P Global Commodity Insights reported that four largely unexplored sedimentary basins in India could hold up to 22 billion barrels of oil. In effect, lesser-known Category-II and III basins namely Mahanadi, Andaman Sea, Bengal, and Kerala-Konkan contain more oil than the Permian Basin which has already produced 14 billion of its 34 billion barrels of recoverable oil reserves.

Rahul Chauhan, an upstream analyst at Commodity Insights, emphasized the potential of India’s unexplored Oil & Gas sector, "ONGC and Oil India hold acreages in the Andaman waters under the Open Acreage Licensing Program (OALP) and have planned a few significant projects. However, India still awaits the entry of an international oil company with deepwater and ultra-deepwater exploration expertise to participate in current and upcoming OALP bidding rounds and explore these frontier regions," he has declared.

Currently, only 10% of India’s 3.36 million sq km wide sedimentary basin is under exploration. However, Petroleum Minister Hardeep Singh Puri says that that figure will jump to 16% in 2024 following the award of blocks under the Open Acreage Licensing Policy (OALP) rounds. So far, OALP has resulted in the award of 144 blocks covering about 244,007 sq km. Under OALP, India allows upstream exploration companies to carve out areas for oil and gas exploration and put in an expression of interest for any area throughout the year. The interests are accumulated thrice a year following which they are put on auction. According to Puri, India’s Exploration and Production (E&P) activities in the oil and gas sector offer investment opportunities worth $100 billion by 2030.

So why is no one rushing to Pakistan to drill?

Shell announced it was selling its Pakistan business stake to Saudi Aramco in June last year, and an auction for 18 oil and gas blocks at the same time last year got a muted response from international bidders, at best. No international companies even bid on 15 of the blocks, according to The Nation.

In July, the country’s Petroleum Minister, Musadik Malik, told a parliamentary committee that no international companies were interested in offshore oil and gas exploration in Pakistan,and those in the country largely had the exit door in view.

It comes down to security, and risk versus reward with Malik explaining to the committee that the cost of security is a major deal-breaker because “in areas where companies search for oil and gas, they have to spend a significant amount to maintain security for their employees and assets”. And security is provided by Pakistan, which has not been up to the task.

In March this year, five Chinese engineers were killed in a suicide attack in Pakistan’s northest, when a vehicle rigged with explosives rammed into a bus transporting staff from Islamabad to the giant Dasu dam project in the Khyber Pakhtunkhwa province. The project is part of the $62-billion China-Pakistan Economic Corridor (CPEC). This incident sparked a series of temporary shut-downs across other projects, as well.

Earlier that same month, insurgents attacked Chinese assets in Pakistan’s southwest, storming the Gwadar Port Authority complex, which is run by China. The attacks were perpetrated by the Balochistan Liberation Army (BLA), separatists fighting for an independent Balochistan, as reported by the Lowy Institute.

Essentially, what this means is that it will be China or bust for Pakistan, as state-owned or state-controlled Chinese explorers have a vastly different appetite for risk. And these massive reserves are not likely to get out of the ground without Aramco showing more desire or the Chinese stepping in, for which discussions are already underway, according to Malik.

In the meantime, Iran is said to be smuggling a billion dollars in fuel into Pakistan every year, as the country’s oil and gas crisis emboldens the black market trade.

SOURCE:https://oilprice.com/Energy/Energy-...ing-To-Drill-Pakistans-Huge-Oil-Reserves.html