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Pakistan Among Top 5 Countries to Discover Oil and Gas in 2017
Pakistan made two key oil and gas discoveries in the third quarter and another three discoveries in the fourth quarter of 2017. These discoveries may have prompted the US-based Exxon-Mobil to join off-shore drilling efforts in Pakistan. American energy giant's entry in Pakistan brings advanced deep sea drilling technology, its long experience in offshore exploration and production and its deep pockets to the country. US Energy Information Administration (EIA) estimates that Pakistan has technically recoverable deposits of 105 trillion cubic feet (TCF) of gas and 9.1 billion barrels of oil. Exxon-Mobil is expected to accelerate exploration and lead to more discoveries and increased domestic oil and gas production.
Top Countries Discovering Oil and Gas:
Russia led with 10 discoveries, followed by Australia with seven discoveries and Colombia with four discoveries. Pakistan and the UK each had three discoveries in the fourth quarter of 2017, according to Global Oil and Gas Discoveries Review.
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In fourth quarter of 2017, the Former Soviet Union leads with 12 discoveries, followed by Asia with eight discoveries, and Oceania with seven discoveries. Europe and South America had five discoveries each, followed by North America with two discoveries, while the Middle East and Africa had one discovery each in the quarter, according to Offshore Technology website.
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| Top 3 Offshore Drilling Sites in Asia-Pacific. Source: Bloomberg |
Exxon-Mobil's Entry in Pakistan:
American energy giant Exxon-Mobil has joined the offshore oil and gas exploration efforts started by Oil and Gas Development Corporation (OGDC), Pakistan Petroleum Limited (PPL) and Italian energy giant ENI, according to media reports.
Each company will have 25% stake in the joint venture under an agreement signed at the Prime Minister’s Secretariat in May among ExxonMobil, Government Holdings Private Limited (GHPL), PPL, ENI and OGDC.
Exxon-Mobile's entry in Pakistan brings deep offshore drilling technology, its long experience and financial resources to the country. It is expected to accelerate exploration and more discoveries.
Pakistan Oil Basins:
A Pakistan Basin Study conducted in 2009 found that the country has six onshore and two offshore basins; offshore basins being the Indus basin and the Makran basin in the Arabian Sea.
The Indus offshore basin is a rift basin that geologists say developed after the separation of the Indian Plate from Africa in the late Jurassic period. It is believed to be the second largest submarine fan system in the world after the Bay of Bengal with high probability of hydrocarbon discoveries.
The Makran Offshore basin is separated from the Indus Offshore basin by Murray ridge, according to Syed Mustafa Amjad's report in Dawn. It is an oceanic and continental crust subduction zone with deepwater trenches and volcanic activity. The basin consists of oceanic crust and periodic emergence of temporary mud islands along the coast suggesting strong evidence of large hydrocarbon deposits.
Pakistan Hydrocarbon Potential:
The United States Energy Information Administration (EIA) estimates that Pakistan has 586 TCF (trillion cubic feet) of gas in Pakistan of which 105 TCF is technically recoverable.
In addition to gas deposits, US EIA estimates there are 227 billion barrels of oil in Pakistan with 9.1 billion barrels being technically recoverable.
Pakistan also has 185 billion tons of coal deposits in Thar desert which are just beginning to be extracted by Sindh Engro Coal Mining Corporation.
Oil and Gas exploration and production companies are currently planning to drill 90 wells in different parts of the country. Under the plan, as many as 50 exploratory and 40 development wells would be drilled in a bid to make the country self-sufficient in the energy sector, according to media reports.
During the last five years, the sources said the exploration and production companies drilled 445 new wells, out of which 221 were exploratory, adding that the increased exploration activities resulted in 116 new oil and gas discoveries.
Current Account Deficits:
Energy imports make up a big chunk of Pakistan's total imports. Rising oil prices worsen the current account deficit and put pressure on Pakistan's reserves, forcing the country to seek periodic IMF bailouts.
Pakistan’s current account deficit has jumped by 50% to a record high of $14.03 billion in the first 10 months of the current fiscal year 2018, according to the State Bank of Pakistan. The country imported $12 billion worth of energy in 2017. The bill is likely to grow with increasing demand and rising prices in 2018.
Reducing energy imports by increasing domestic production will likely ease Pakistan's current account deficits and reduce its chances of going back to the IMF again and again.
Summary:
Pakistan made 2 key oil and gas discoveries in 3rd quarter and another 3 discoveries in the 4th quarter of 2017. These discoveries appear to have prompted US-based Exxon-Mobil to join off-shore drilling efforts in Pakistan. American energy giant's entry in Pakistan brings advanced deep sea drilling technology, its long experience in offshore exploration and financial resources to the country. It is expected to accelerate exploration and lead to more discoveries. US Energy Information Administration (EIA) estimates that Pakistan has technically recoverable deposits of 105 trillion cubic feet (TCF) of gas and 9.1 billion barrels of oil. Reducing energy imports by increasing domestic production will likely ease Pakistan's current account deficits and reduce its need to seek repeated IMF bailouts.
Related Links:
US EIA Estimates of Oil and Gas in Pakistan
Methane Hydrate Release After Balochistan Quake
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Comment by Riaz Haq on December 4, 2024 at 9:11am
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Russia, Pakistan discuss cooperation on oil and gas exploration, Ifax reports | Reuters
https://www.reuters.com/business/energy/russia-pakistan-discuss-coo...
MOSCOW, Dec 4 (Reuters) - Russia and Pakistan discussed cooperation on oil and gas offshore exploration and refining at intergovernmental meetings this week in Moscow, the Interfax news agency reported, citing Russia's deputy energy minister.
Talks also covered the prospect of Russia supplying Pakistan with crude oil and grains, according to the report.
"Yesterday we received a rather interesting proposal from Pakistan in the area of offshore oil and gas exploration, increasing oil recovery at mature fields, and in oil refining," the deputy minister said.
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https://interfax.com/newsroom/top-stories/108273/
MOSCOW. Dec 4 (Interfax) - Pakistan has proposed that Russia participate in oil and gas exploration on its shelf, as well as in oil refining, Deputy Energy Minister Roman Marshavin said during a meeting of the intergovernmental commission.
"A protocol of the working group has been agreed upon, and all agreements are reflected in it. Stable supplies of Russian oil to Pakistan are ongoing, and all technical and financial issues are being promptly resolved by the sides. Work is underway to increase these supplies and diversify the range of products," he said.
"Yesterday, we received a rather interesting proposal from Pakistan regarding oil and gas exploration on the shelf, enhancing oil recovery at mature fields, and in oil refining. Russian companies are ready to study these proposals. We will continue the discussion with our partners," he said.
"We are also awaiting the results of Pakistan's comprehensive energy infrastructure plan, after which we will continue the dialogue, including the coal industry. Negotiations have been held between RusHydro [MOEX: HYDR] and Power Machines and Pakistan's water and energy authorities. Five projects in hydroenergy and water management have been selected, and we have agreed to hold further talks on these topics," Marshavin said.
"We are exporting food products and agricultural goods, and expect grain supplies to resume. We positively assess the growth of Russian mineral fertilizer exports to Pakistan this year," he said.
Russia sees significant potential for cooperation in agricultural and transport engineering, he said. Domestic companies are ready to offer modern types of machinery to their Pakistani partners in these areas. Moscow has also proposed expanding cooperation in the pharmaceutical sector, particularly in insulin supplies.
The sides have agreed to work on a test shipment using the North-South international transport corridor.
Russia is ready to offer modern high-tech solutions in the fields of information security, smart cities, e-government and the Internet of Things.
Trade turnover between Russia and Pakistan reached a record $1.1 billion in 2023 and has grown 1.5-fold over the past five years.
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Trump Truth Social Posts On X
@TrumpTruthOnX
We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States “extremely happy.” I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is.
We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves. We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!
Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!
https://x.com/TrumpTruthOnX/status/1950654905804279830
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Trump Says Pakistan Deal Done, South Korea Is Close
https://www.wsj.com/livecoverage/fed-meeting-interest-rate-decision...
The U.S. and Pakistan have concluded a trade pact, President Trump said Wednesday, adding that a deal could be close with South Korea.
Trump said on Truth Social that the U.S. has “concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,” and is in the process of choosing a company to lead the partnership.
Trump also said he would meet with a South Korean delegation on Wednesday afternoon, who would bring an offer to “buy down” the 25% tariffs Trump has threatened to impose Aug. 1. Trump has previously pressed others to commit funds to build infrastructure and energy projects in the U.S., including the European Union and Japan.
Trump provided no further detail, but said "a full report" would be released "at the appropriate time."
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Pakistan awards first offshore oil exploration blocks for decades | Reuters
https://www.reuters.com/business/energy/pakistan-awards-first-offsh...
First offshore bidding round since 2007 draws 23 block awards
Four local-led consortiums win exploration rights
Turkish national oil company TPAO among foreign partners
Possible $750 million–$1 billion investment if drilling proceeds
KARACHI, Oct 31 (Reuters) - Pakistan said it has awarded 23 offshore exploration blocks to four consortiums led by local energy companies, some partnered with foreign firms including Turkey's national oil company TPAO.
In Pakistan's first such bidding round in nearly two decades, its energy ministry said on Friday that bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres.
The energy ministry listed state-run Oil and Gas Development Co. Ltd (OGDCL)(OGDC.PSX), opens new tab, Pakistan Petroleum Ltd (PPL) (PPL.PSX), opens new tab and MariEnergies (MARE.PSX), opens new tab, along with privately-owned Prime Energy, which is backed by Pakistan's Hub Power Company (Hubco) (HPWR.PSX), opens new tab, among the successful bidders.
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Turkish Petroleum acquires 25% stake in Pakistan’s $1B offshore oil exploration field - Türkiye Today
https://www.turkiyetoday.com/business/turkish-petroleum-acquires-25...
ürkiye’s national oil and gas company, Turkish Petroleum (TPAO), has secured a 25% stake and operating rights in Pakistan’s Eastern Offshore Indus Block-C as part of Islamabad’s newly relaunched offshore energy exploration drive, Pakistan’s Ministry of Energy announced Thursday.
The move extends Türkiye’s energy footprint beyond its domestic and Mediterranean operations, aligning with Ankara’s broader strategy to diversify exploration partnerships and secure new hydrocarbon resources abroad.
The Offshore Bid Round 2025, Pakistan’s first in 18 years for the grant of petroleum exploration licenses, covers 40 offshore blocks across the Indus and Makran basins.
The process, which began in January 2025, was designed to attract both domestic and foreign investors through a Model Production Sharing Agreement (MPSA) that sets out transparent contractual and fiscal terms for exploration activities.
According to the statement, bids were received for 23 blocks covering about 53,500 square kilometers (20,656.4 square miles)—an area roughly the size of Costa Rica—reflecting renewed investor confidence in Pakistan’s energy sector, local media reported.
The ministry said these activities represent around $80 million in initial investment, which could rise to between $750 million and $1 billion if exploratory drilling proceeds.
Among the winning bidders were Pakistan’s national energy companies OGDCL, PPL, Mari Energies, and Prime Energy, joined by international and regional partners including Turkish Petroleum (TPAO), United Energy, Orient Petroleum, and Fatima Petroleum.
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