Oil and gas reservoirs: FATA has enough reservoirs to attain self-sufficiency within few years

It is high time to explore FATA mineral reservoirs

2
549

By HAMID KHAN WAZIR

ISLAMABAD: In what appears to be a significant development, the long-deprived and the war-weary Federally Administered Tribal Areas (FATA) has sufficient oil, gas and mineral resources that could make the terror-stricken area economically self-sufficient within few years if explored.

FATA being the most backward and deprived region of the country at present could turn to be economically independent within a short span of three to five years because the area is full of natural resources; hence there is need to immediately start geological studies of FATA to prioritise petroleum concession blocks in terms of “Probability of Success-PSO”, reservoir size and time till discovery.

As per the technical studies prepared by Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGDCL), a copy of which is available with Pakistan Today, FATA has the potential to produce about 5 times the current production of KP, which is 54,500 barrels per day or 55 per cent of national production that is around 99,000 barrels per day.

Similarly, FATA has sufficient gas and LPG reservoirs, as it could also produce gas approximately 5 times current production of KP and LPG nearly 3 times current production of KP.

The studies showed that these targets could be achieved within time 3 to 5 years and could yield Rs 100 billion annually in terms of ‘royalty’ and other revenue streams as per the Petroleum policy 2012, besides creating more than 50,000 jobs for FATA domiciled youth.

FATA oil and gas ‘kitchen” is expected to be 10 times bigger than Potohar, which has been producing oil and gas for last 150 years.

The documents showed that several secondary investments, such as oil refineries, power plants, urea fertilizer plants and petrochemicals can be set up with FDI exceeding $ 2 billion, without any financial burden on FATA.

KPOGCL has already carried out studies on vintage data and therefore could be engaged to prepare the feasibilities of Petroleum Concession Blocks.

Since oil and gas are highly risky and capital intensive, therefore professionals (including FATA domicile) of KPOGCL can be engaged to market these blocks without putting financial burden on FATA.

KPOGCL has already employed a sizable number of professionals of FATA domicile and has trained dozens of FATA youth on world-class software.

Exploration Blocks:

Lakki Exploration Block (3270-9) having an area of 1084.87 sq km, lies in Lakki Marwat (63.48 per cent), Karak (14.33 per cent) and Bannu (22.19 per cent) districts of KP. The block lies in prospectively Zone-I. Based on surrounding discoveries in Kohat-Bannu basin i.e. Chanda, Mela, Nashpa, Makori, Maramzai and Mamikhel, Lakki Block is considered to be prospectively on which work has already been started since September 2016 and it has the potential to produce 1400/4000 BBL/D oil, 09/25 MMSCFD gas and 100 tonnes per day LPG. Capital expense of this programme is estimated at $ 55 million which includes the studies along with the initial well and it will start production with four years.

DIK East Exploration Block having an area of 446 sq km located in D.I Khan (100 per cent). The Block lies in prospectively Zone-II. Based on surrounding discoveries in Kohat-Bannu basin i.e. Chanda, Mela, Nashpa, Makori, Maramzai and Mamikhel, DIK East Block is considered to be prospective on which work has already started in 2017 leading to the drilling activities in 2018-19 and full programme cost is estimated at $ 41 million. Expected oil production is 700/2000 BBL/D, gas 07/20 MMSCFD and expected LPG production is 100 tonnes per day.

DIK West Exploration Block having an area of 300 sq km located in D.I Khan (88.55 per cent). The Block lies in prospectively Zone-II. Based on surrounding discoveries in Kohat-Bannu basin i.e. Chanda, Mela, Nashpa, Makori, Maramzai and Mamikhel, DIK West Block is considered to be prospective and work has started on it in 2017 leading to the drilling activities in 2018-19 and full program cost is estimated at $ 40 million. Expected oil production is 700/2000 BBL/D, gas 08/25 MMSCFD and LPG production is 100 tonnes per day.

Miran Exploration Block having an area of 1064.3 sq km, lies in North Waziristan agency (85.63 per cent) and Kurram agency (14.37 per cent) of FATA. The block lies in prospectively Zone-I (figure 2). Based on surrounding discoveries in Kohat-Bannu basin i.e. Chanda, Mela, Nashpa, Makori, Maramzai and Mamikhel, Miran Block is considered to be prospective and work has already started in 2017 leading to the drilling activities in 2018-19 and full programme cost is estimated at $ 45 million. Expected oil production is 840/2000 BBL/D, gas 11/30 MMSCFD and LPG production is 100 tonnes per day.

A senior official wishing to go unnamed told Pakistan Today that since the law and order situation improved and writ of the government has been established in FATA completely due to which confidence level has increased for national and international oil companies thus it is high time to explore the minerals in FATA.

He said that the FATA could depart from begging from the federal government after exploration of these hidden treasures in the region within a short span of time.

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here