ISLAMABAD: The Energy ministry has negated caretaker foreign minister’stall claim of discovering huge oil reserves reportedly bigger than Kuwait’sin Pakistan near the Iran border by US energy giant Exxon Mobil, sourcessaid.
Senior officials at the Energy Ministry on condition of anonymityinformed *PakistanToday* that the energy ministry has negated the tall claim made by thecaretaker Minister for Maritime Affairs and Foreign Affairs, AbdullahHussain Haroon that the US energy giant is ‘close to discovering’ oilreserves bigger than Kuwait in Pakistan.
They said neither a license for oil and gas exploration was awarded toExxon Mobil nor the American multinational oil and gas company is currentlyengaged in the drilling of an exploratory well. Drilling work on thefirst-ever offshore block located near to Karachi is scheduled to start inJanuary 2019, said sources.
The sources also said that the caretaker foreign minister has given anirresponsible statement on a sensitive matter which needs inquiry as it hasadded problems for the ministry, intelligence forces and concerneddepartments. Foreign minister’s statement contained exaggerated figures andit has made a seism movement in the petroleum sector, sources added.
Addressing business leaders at the Federation of Pakistan Chambers ofCommerce and Industry (FPCCI), Haroon on August 4 said that Exxon Mobil isclose to discovering huge oil reserves in Pakistan near the border withIran, and those reserves could even be larger than the oil reserves ofKuwait.
Exxon Mobil is part of a four-member joint venture engaged in oil and gasdiscovery which is located in the sea near to Karachi. And, Eni (Italy) isthe operator of the oil and gas discovery in offshore Indus Block G.
Quoting the petroleum ministry’s license, sources also said that theoffshore Indus Block G exploration license is a joint venture with Eni(Italy) as Operator with a 33.34 per cent working interest, the Oil and GasDevelopment Company Ltd with a 33.33 per cent and Pakistan Petroleum Ltd.with a 33.33 per cent working interest. License area is about 7,500 sq. km,water depth about 1,600 – 2,800m and distance from Karachi about 250 km.
This license falls in the ultra-deep offshore category. And, recently,ExxonMobil (USA) entered this joint venture as an equal partner so that allfour companies, Eni, OGDCL, PPL and ExxonMobil will each have an equal 25per cent working interest. Operatorship will remain with Eni.
Currently, the plan is for the joint venture Operator (Eni) to drill anexploratory well in early 2019 with an investment of over $100 million.They said the skills and experience required to operate in ultra-deepwaters is possessed by only a few companies in the world and Pakistan isfortunate to have two of these companies Eni and ExxonMobil as partners inthis Block. The partners are optimistic about the prospects of this Blockand in the case of success eventual investment in the Block could be ashigh as $10 billion, said sources.
Official sources further said that this under deepwater drilling in sea foroil and gas discovery will cost around $80 million and the drilling for oiland gas will be of 2,000 to 2500 meter under the deepwater while drillingfrom a floating rig station will be completed within 50 days.
Similarly, if oil and gas is explored after completion of the drilling offirst well, then a test for the quantity and quality will be made anddrilling of more wells will be initiated besides the start of commercialproduction of oil and gas from offshore Indus Block G. They said thatdevelopment will be made for the start of commercial production which willcost three billion dollar. Development work of the oil field will take fouryears period, said sources.
When contacted Secretary Petroleum Sikandar Sultan Raja said actual factshave been communicated to the foreign office. He said Exxon Mobil has neverinitiated drilling for oil and gas discovery in Pakistan near with Iranborder. He, however, said it is a positive development that multi-nationaloil and gas companies are working in country’s offshore for oil and gasdiscovery.