PAKISTAN: Union steps up exploration

10 March 1995

Union Texas Pakistan, a wholly owned subsidiary of the US' Union Texas Petroleum Holdings has reported three discoveries in its Badin concession in southeast Pakistan. Union Texas also held talks with the government in February on further exploration and participation in private power projects.

Union operates the Badin concession in joint venture with the state-owned Oil & Gas Development Corporation and Occidental Petroleum (Pakistan). The joint venture plans to spend about $54 million on Badin operations in Pakistan for 1995, Union says. Up to 15 exploration wells will be drilled in 1995.

The discoveries were:

Tangri number two exploration well. It produced 1,704 barrels a day (b/d) of oil on a 16/64-inch choke from the Lower Goru formation. An initial production facility is being installed. Production was expected to start in the first quarter of 1995.

Liari deep number one exploration well. It was drilled at two levels to test the deeper horizons beneath the Liari field. It flowed at a daily rate of up to 2 million cubic feet of gas at deeper levels. The well has been shut in until the shallower oil pays have been depleted and an existing oil pipeline can be converted to a gas transmission line.

Zaur number one exploration well. It will be tested after evaluation of an appraisal well. A second well will be drilled during 1995 and construction of a gas pipeline to link the Zaur field to the ventures gas processing facility at the Bukhari field is being evaluated.

In 1994, the venture produced an average of 19,800 b/d and 170 million cubic feet of gas a day, accounting for about 33 per cent of Pakistan's total domestic oil production and about 10 per cent of gas output. Union has drilled a total of 114 exploration and appraisal wells in the Badin concession since 1977, of which 62 have been successful.

Union Texas' senior vice-president MW Kripps visited Pakistan in February for talks with the Petroleum & Natural Resources Minister Anwar Saifullah Khan. He discussed the company's plan to secure new operating concessions. Kripps also said that Union Texas was interested in participating in small power generating projects in Pakistan.

Union Texas will be conducting its initial field work in the Eastern Sind block, a new concession for the company, in 1995. Further exploration work will continue in 1996.

Kripps also discussed the possibility of installing gas compression units in the Badin area which could increase production and recoverable reserves.

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