The seismic assessment in Pakistan cannot be considered discovery of oil and gas reserves yet, a top source in the neighbouring country-owned oil and gas company has told CNN-News18 amid buzz that significant deposits have been discovered within Pakistan’s territorial waters after a three-year survey in collaboration with a friendly country.
“It’s just a seismic assessment in the Arabian Sea,” a top official of Oil & Gas Development Company (OGDCL) said, adding that it was too early to claim that huge hydrocarbons reserves had been found.
The official added that the survey data is still being processed to estimate and define the potential of hydrocarbon resources. “A seismic survey only provides knowledge about the formations below the sea surface. This was also attempted in 2018.”
Pakistan, which is struggling financially, is looking for potential resources to attract foreign as well as public-private investments and partnerships in the country. What may prove to be a deterrent in the country’s exploration plans is the significant financial investment needed to explore offshore oil and gas reserves, estimated at a minimum of around US $3 billion just for initial exploration.
In 2018, ExxonMobil, the American multinational oil and gas company, drilled up to 5,000 meters and was optimistic about the oil discovery but, after the 17th attempt, it abandoned the operation after no reserves were found.
According to an Express Tribune report, Pakistan’s total energy import bill in 2023 was $17.5 billion, projected to nearly double to $31 billion in seven years. The country currently meets 29 per cent of gas, 85 per cent of oil, 20 per cent of coal and 50 per cent of liquefied petroleum gas (LPG) requirements through imports.
On Friday, a top Pakistani security official said the geographic survey has allowed Pakistan to identify the location of the deposits, and the relevant departments have informed the government of the resources found in Pakistani waters.
Terming it an effort to benefit from what he called the ‘blue water economy’, the official said that proposals for bidding and exploration were being studied, meaning that the exploration work can be started in the near future.
Some estimates suggest that this discovery constitutes the fourth-largest oil and gas reserves in the world.
Currently, Venezuela is thought to be the leader in oil reserves with around 3.4 billion barrels, while the US has the most untapped shale oil reserves. Saudi Arabia, Iran, Canada and Iraq constitute the rest of the top five.
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