Pakistan strikes 'gold' in Sindh; fortunes turn amidst Strait of Hormuz crisis

Lahore: The US-Iran conflict has impacted the entire world. The closure of the Strait of Hormuz has led to an energy crisis for nations across the globe. Pakistan has seen a significant rise in oil prices, causing the public to grapple with inflation. Amidst this, Pakistan’s fortunes have taken a turn for the better; a treasure trove of oil and gas has been discovered in its Sindh province. While this oil reserve could certainly offer some relief in the future, it is unlikely to result in a drastic reduction in oil prices. Given the scale of demand, the discovery of these wells is not expected to yield massive benefits. It is worth noting that Pakistan's Sindh province lies along the border, adjacent to India's Rajasthan.

Where was oil and gas discovered?

A Pakistani oil and gas company has identified reserves in the Sanghar district of southern Sindh province. The Oil and Gas Development Company Limited (OGDCL) stated that this discovery would not only expand OGDCL's and the nation's hydrocarbon reserve base but also help bridge the gap between energy demand and supply through domestic resources.

When were the oil wells discovered?

In a letter addressed to the Pakistan Stock Exchange and the London Stock Exchange, OGDCL informed shareholders that the exploration took place last month in the Bobi and Dhamraki areas of Sanghar district. In the letter dated June 3, OGDCL stated that, acting as the operator with a 100% working interest in the Bobi and Dhamraki mining leases, it discovered oil at its exploratory well, 'Bobi Deep-1'. The well is currently producing 2,000 barrels of oil per day (BOPD) and 1.1 million standard cubic feet of gas per day (MMSCFD) at a choke size of 32/64 inches, with a wellhead flowing pressure of 1,050 pounds per square inch (PSI).

The letter states that the discovery was made on May 3, when a well was drilled to a total depth of 3,305 meters in the Sembar Formation, utilizing OGDCL's own technical and operational capabilities. This discovery marks a significant milestone for the Bobi and Dhamrakaki mining leases, as it represents the first hydrocarbon find from the 'Massive Sand Play' in this region. It notes, "Beyond establishing a new exploration play, this discovery has de-risked similar prospects in the surrounding areas, opening up new avenues for future exploration and resource expansion."