OGDCL strikes new tight gas reserves in Sindh

KARACHI: Pakistan’s largest exploration and production entity, Oil & Gas Development Company Limited (OGDCL), has made new discovery of tight gas at its exploratory well Nur West # 01, in district Sujawal in Sindh.

This information came to light on Monday through a notice submitted to the Pakistan Stock Exchange (PSX) by the company.

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In the letter submitted to the PSX, the company, operating with a 100 per cent stake in the Nur Development & Production Lease (D&PL), expressed gratitude for the discovery, attributing it to the company’s technical prowess and operational capabilities.

According to the notice, the exploratory well was drilled and tested to a depth of 2,975 meters.

OGDCL further said that the discovery is being evaluated as tight gas, a form of unconventional energy resources. It is different from shale gas in a way that it cannot flow naturally at commercial rates with conventional methods.

This breakthrough comes at a strategic juncture, aligning with the federal government’s efforts to encourage investment in unconventional hydrocarbons. In February, the government formulated the Tight Gas (Exploration & Production) Policy 2024, aimed at facilitating and incentivising exploration activities in this domain.

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The discovery at Nur West # 01 is anticipated to open new avenues for OGDCL and contribute significantly to Pakistan’s hydrocarbon reserve base. In response, OGDCL has committed to expediting its tight gas exploration program, reaffirming its dedication to bolstering the country’s energy resources.