Pakistan discovers major gas reserves in THIS area: Details inside

KARACHI: Pakistan has discovered significant gas reserves in North Waziristan’s Shiva fields, estimated at 351.2 billion cubic feet (BCF), with an expected life of 17 years.

According to media reports, the newly discovered Shiva-2 well is set to inject 70 million cubic feet per day (mmcfd) into the national grid, increasing domestic gas production by more than 3 percent per day. This increase will reduce dependence on expensive fuel imports, saving millions of US dollars in foreign exchange reserves.

As detailed in Mari Petroleum’s 2024 annual report released on Tuesday, the company will supply 70 mmcfd of gas from Shiva-2, recently constructed by Sui Northern Gas Pipeline Limited (SNGPL). It will connect to the system through a pipeline. Topline Research analyst Sunny Kumar noted that hydro-testing of the pipeline is currently underway.

The project was delayed due to security concerns, but the pipeline was completed in August 2024. Gas will start flowing into the grid after commissioning of primary generating facilities (EPF) and subsequent ramp-up. Mari Petroleum’s report highlights that the development will increase local gas supply by more than 3 percent, increase productivity, diversify the company’s portfolio, and generate substantial revenue.

Kumar emphasized that as of June 2024, Shiva’s gas reserves are estimated at 351.2 BCF, with a production life of about 14 years at 70 mmcfd. Following the announcement, Mari Petroleum shares rose 1.93 percent to close at Rs 3,510.73 per share on the Pakistan Stock Exchange (PSX) with a traded volume of 125,759 shares.

Mari Petroleum operates the Waziristan block with a 55% working interest, while Oil and Gas Development Company (OGDC) and Orient Petroleum Inc. (OPI) hold 35% and 10% interests respectively. Annual impact on Mari Petroleum is likely to be Rs 60-65 per share (11-12% of FY25 annual revenue), while OGDC will see an impact of Rs 1.2 per share based on oil and gas prices of $80 per barrel. . and $5.9-6.0 per mmBtu (Million British Thermal Units).

A number of appraisal and exploration wells are planned to improve the hydrocarbon potential in the Waziristan block. Among them, the Spinwam-1 exploratory well was spudded on 28 May 2024, with drilling expected to be completed by the third quarter of FY 2024-25.

Recent data shows that Pakistan’s crude oil and gas reserves have seen a change, with crude oil reserves increasing by 26 percent and gas reserves by 2 percent as of June 30, 2024. The age of the country’s oil and gas reserves is 10 and 17 years respectively.