Hungary MOL makes significant oil discovery in Pakistan

Jun 10, 2014 12:00 AM

Hungarian oil and gas group MOL has announced that a joint venture with 30% MOL ownership has made a significant oil discovery in Pakistan. The test well’s flow rate reached 5,500 barrels per day, which is among the country’s top yields.

MOL has announced on Tuesday that Ghauri Joint Venture (GJV) has made a significant oil discovery in Ghauri X-1 well, located in district Jhelum, Punjab Province in Pakistan. GJV comprises Mari Petroleum Company with 35% working interest as operator as well as Pakistan Petroleum Limited (PPL) and MOL with 35% and 30% working interests, respectively. The Ghauri well discovery is a landmark achievement being the first hydrocarbon discovery in the Eastern part of Potwar Plateau.

The Ghauri X-1 well flowed oil with API gravity of 23 from Sakessar Formation at original average flow rate of 1,193 bbls/day, which increased to 5,500 bbls/day after acid treatment at 32/64" choke size, 1100 psi (76 bar) flowing wellhead pressure. The well’s recorded flow rate ranks it amongst the country’s top oil producing wells. Based on initial evaluation of this well test MOL believes the potential for this part of the Ghauri Block could be significant.

"MOL is currently evaluating the SOIIP, however it is too early to provide a forecast for the whole Block. In the vicinity of the Ghauri X-1 well we support our partner’s initial estimate of reserves in place of 22 million barrels, which is related to the proven oil producer Sakessar Formation. As we progress the development of secondary reservoir Kussak Formation, with our Partner Mari Petroleum, we will develop a better understanding of the estimate of reserves contained with the Ghauri Block. Our Partner Mari Petroleum as Operator has initiated installation of early oil production facilities on fast track basis and targets to put the well on EWT production by end of June 2014. The Ghauri JV is working to expedite exploration of the remaining hydrocarbon potentials in Ghauri Block," MOL said.

Alexander Dodds, Executive Vice President for MOL Group E&P reinforced MOL Group's intention to increase investment in Pakistan.

MOL announced last March the signing of an agreement to buy a 30% stake in the Ghauri block in Pakistan and a 25% stake in Block 43B Oman. The approval of the relevant authorities on the farm-out agreements inked with Mari Petroleum Company Limited (MPCL) was received in November 2013.

Not the first good news from Pakistan
MOL announced in mid-March this year that MOL Pakistan enhanced production from TAL Block in Pakistan by 20% with improving liquid to gas ratio. MOL Pakistan successfully achieved a combined incremental daily production of 5,830 boepd (30 mmcf) natural gas, 7,500 barrel crude oil/condensate and 2,520 boepd (300 metric tons) of LPG on TAL block.

About TAL Block

Tal Block is located in Khyber Pakhtunkhwa (KP) province, jointly explored and developed by MOL, Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDCL), Government Holdings Private Limited (GHPL) and Pakistan Oilfields Limited (POL).

So far, 6 discoveries have been made in the block, commercial production has commenced from 5 of the discoveries (Manzalai started in 2005, Makori in 2006, Mamikhel in 2010, Maramzai in 2011 and Makori East in 2012), while Tolanj discovery is under appraisal. The total block production of TAL was 67 mboepd at the end of 2013 (out of which 5.6 mboepd was MOL’s entitlement share), which was elevated to above 80 mboepd after the start-up of the new plant.

Volumes are provided to the national grid system through the recently completed new plant, the Makori Gas Processing Facility (MGPF). Total project cost of MGPF is USD 225 million.

Through this important milestone in operation the production of TAL block will be enhanced by around 20% compared to 2013 levels, along with improving liquid to gas ratio. MOL Pakistan is the operator of Tal Block with 8.42% operating interest in development projects.

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