Petroleum Exploration to develop, operate Block 22 fields in Pakistan

June 3, 2003
Pakistan Petroleum Ltd.(PPL) Sunday turned over operatorship to Petroleum Exploration (Pvt.) Ltd. (PEL) of Block 22 in Sindh and Balochistan provinces, Pakistan. PEL will be responsible for the development and production of the Sadiq X-1 well on Lease No. 155/PAK/2003, the Khanpur X-1 well on Lease 156/PAK/2003, and the Hasan X-1 well on 157/PAK/2003.

By an OGJ correspondent

KARACHI, June 2 -- Pakistan Petroleum Ltd.(PPL) Sunday turned over operatorship to Petroleum Exploration (Pvt.) Ltd. (PEL) of Block 22 in Sindh and Balochistan provinces, Pakistan. PEL will be responsible for the development and production of the Sadiq X-1 well on Lease No. 155/PAK/2003, the Khanpur X-1 well on Lease 156/PAK/2003, and the Hasan X-1 well on 157/PAK/2003. The block had been awarded to PEL in November 1994 and operatorship transferred to JV partner PPL in 1996.

PEL has a working interest of 23.68 % and PPL 35.5 %. Other Block 22 partners are Government Holdings (Pvt.) Ltd. 25 % and Pyramid Energy International Inc., Canada, 15.78 %.

Block 22 lies in the Shikarpur, Jacobabad, and Sukkur administrative districts in Sindh Province and the Nasirabad district of Balochistan Province. Within the block are giant Sui gas field, Uch, and Loti gas fields in the north, Kandra gas field in the south, and Ghauspur, Kandhkot, and Mari gas fields in the east.

The owners have invested a total of $16.9 million on the block to March of this year, including the purchase of a 20 MMscfd MDEA processing plant from Presson-Descon for $2.4 million, and the relocation of a 30 MMscfd dehydration unit.

Five major prospects have been identified on the block based on the completion of geological and geophysical studies and the reprocessing of 265 line km of seismic survey.

Of these, Hasan X-1 was spud Feb. 20, 1999, to 1,132 m TD. The well penetrated 41.4 m of gas column in the Sui main limestone formation. A successful drill stem test produced 13.38 MMscfd of gas on a 56/64-in. choke with flowing wellhead pressure of 812 psig.

Sadiq X-1 was spud in February 2000 and reached its target depth of 1,172 m. The well penetrated 15.5 m of gas column in the Sui main limestone formation. One drill stem test was carried out in which gas flowed at a stabilized rate of 12.08 MMscfd from a 64/64-in. choke at a flowing wellhead pressure of 591 psig.

Khanpur X-1 was spud on Sept. 01, 2002 and reached 1230 m TD in Sui main limestone. A drill stem test was carried out that produced 11.2 MMscfd of gas from a 64/64-in. choke at 456 psig flowing wellhead pressure.

Hasan X-1 has supplied gas to Sui Northern Gas Pipe Line (SNGPL) at a flow rate of 14 MMscfd from Dec. 1, 2000 to Apr. 3 of this year when the D&P lease was awarded. Since Apr. 3, Hasan has been supplying 19 MMscfd of gas on a long-term basis.

Director General Petroleum Concession approved the declaration of commerciality over Block-22 in November 2002 and granted drilling and production leases for Hasan, Sadiq, and Khanpur, approving the development plan in April.

The development plan has three phases: Phase 1: Hasan X-1 extended well test, began in December 2000, with 14 MMscfd of gas supplied to SNGPL until Apr. 3. Phase 2: Tie in Sadiq-1 and Khanpur-1 to the existing processing facility and enhance production from 14 MMscfd to 20-22 MMscfd. Phase 3: Drill and complete development well Hasan-2 on structure D and conduct an aggressive exploration policy.

Currently PEL is operator and has exploration licenses over Kandra and Mirpur Mathelo blocks and a mining lease over Badar gas field, with the working interest in Kandra 95 %, Mirpur Mathelo 95 %, and Badar gas field 26.32 %.