OGDCL starts drilling shale gas well KUC-01in Hyderabad

Oil & Gas Development Company Ltd (OGDCL) started drilling of first shale gas well in Hyderabad for exploration of unconventional hydrocarbon deposits.

OGDCL starts drilling shale gas well KUC-01in HyderabadThe company official said in a statement that OGDCL had technically planned to drill the well, named KUC-01 in two phases.

The first well is planned to be drilled in vertical section and fracturing operations will be carried after reservoir evaluation.

Based on the outcome of the reservoir evaluation and fracturing job, further technical evaluations will be carried out that will decide entering the second phase which will include drilling a horizontal well section and further frac operations.

This is the first well being drilled by OGDCL to explore unconventional shale gas and estimated chance of success (COS) for commercial hydrocarbon production at this point in time is about 10pc.

The KUC-01 is a pilot shale gas project and one of the key objectives was to gather maximum information on prospects of shale gas and to ascertain the possibilities of the shale gas development in Pakistan. The OGDCL has the complete operatorship of the well.

According to a 2015 assessment by the US Energy Information Administration (USEIA), Pakistan had confirmed recoverable reserves of around 200 trillion cubic feet (TCF) of natural gas and around 58 billion barrels of oil in its shale structure many times larger than existing conventional gas reserves of around 20 TCF and 385 million barrels of oil.

However, the production cost was estimated by the state-owned exploration firms to be over $10 per million British Thermal Unit  considered at the time as economically enviable because of lower global oil prices.

The USEIA had reported in April 2011 the presence of 206 TCF shale gas in lower Indus Basin out of which 51 TCF was termed technically recoverable.

However, in June 2013 the USEIA revised the shale gas resource in Pakistan at 586 TCF, out of which 105 TCF was tipped as risked technically recoverable and also included 9.1bn barrels of shale oil risked technically recoverable out of 227bn barrels shale oil in place.