As Pakistan seeks to bolster its energy resources amid soaring fuel costs and dwindling reserves, the Petroleum Division has clarified that the confirmation of any significant oil and gas reserves in the country’s territorial waters will only be possible following thorough exploration. This cautious stance comes in response to recent speculation about potential new reserves.
Sources within the Petroleum Division informed Geo News that, while a geological survey has been conducted to locate oil and gas in the sea, the data is still under review. The current phase involves analyzing this data to determine the feasibility and potential scale of any discoveries. According to the sources, it is premature to claim the discovery of substantial oil and gas reserves until further exploration confirms the findings.
The Petroleum Division plans to conduct a bidding process for offshore blocks in the first quarter of the coming year. Successful bidders will be awarded these blocks for further exploration and development. This process is expected to play a crucial role in addressing the country’s energy needs and improving its economic stability.
The need for new reserves is underscored by the ongoing economic challenges faced by Pakistan. The country’s expenditure on petroleum imports has been a significant drain on foreign exchange reserves. Recent data highlights a decline in oil and gas reserves, which exacerbates the nation’s energy challenges.
According to data released by Pakistan Petroleum Information Services, the country’s oil reserves fell by 14% year-on-year, from 224 million barrels in December 2022 to 193 million barrels in December 2023. Gas reserves also decreased by 5% year-on-year, standing at 18,109 billion cubic feet (bcf) compared to 19,042 bcf in the previous year.
The government’s recent decision to auction 20 offshore blocks for exploration is a strategic move aimed at discovering new reserves and stabilizing the economy. Petroleum Minister Musadik Malik, speaking at a session of the National Assembly’s Standing Committee on Energy, emphasized that the administration is expediting efforts on onshore tight gas exploration and introducing new incentives to attract exploration companies. These measures are designed to address the high costs and challenges associated with exploration under previous policies.
Historically, Pakistan has undertaken several offshore exploration activities based on estimates rather than confirmed findings. Past exploration efforts have yielded varying results, and the size of any potential reserves can only be accurately determined through extensive exploration.
Recent discoveries include a gas condensate find in the Razgir-1 exploratory well in Kohat district by the TAL Joint Venture, which includes MOL Pakistan Oil & Gas Co. B.V., Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), and Government Holdings Private Limited (GHPL). Additionally, gas discoveries were reported earlier in Punjab’s Rahim Yar Khan and Sindh’s Sujawal and Khairpur districts.
These recent discoveries offer hope but also highlight the need for continued exploration and development to fully address the country’s energy demands. The ongoing efforts to auction offshore blocks and revise exploration incentives reflect the government’s commitment to ensuring energy security and economic stability.
As Pakistan navigates its energy challenges, the emphasis on careful exploration and data analysis is crucial. The Petroleum Division’s approach ensures that any claims of significant reserves are substantiated by thorough exploration, balancing optimism with pragmatic steps to secure the nation’s energy future.
