March 5, 2020: The Canadian Heavy Oil Association (CHOA), in conjunction with the Trade Commissioner Services of the Government of Canada, is organizing a Business Development Mission to Pakistan, focusing on the Oil & Gas sector.
This mission is created to support Canadian companies to grow their business and expand into new markets.
Pakistan’s Prime Minister, Imran Khan has demonstrated a commitment to revitalizing Pakistan’s energy sector by creating policies focused on attracting investment to develop Pakistan’s vast yet challenging energy resources.
Pakistan has huge shale oil and shale gas resources which have been hitherto unexploited. U.S Energy Information Agency (EIA) estimated in 2013 that the total shale gas-in-place was 586 trillion cubic feet and shale oil-in-place was 227 billion barrels. The risked, technically recoverable shale gas and oil were estimated to be 105 TCF and 9.1 billion barrels respectively. In 2014, the United States Agency for International Development (USAID) conducted a detailed study of 1,611 wells including cuttings’ analysis in Houston and updated the risked technically recoverable shale gas and oil numbers to 95 TCF and 14 billion barrels respectively.
These shale deposits are found in the Lower Indus Basin in Sembar and Ranikot formations. The Sembar formation was deposited under open-marine conditions. In the prospective area of the Lower Indus Basin, the thickness of Sembar shale ranges from 1,000 to over 2,000 ft.
The EIA identified an organic-rich interval 1,000 ft thick with a net shale thickness of 250 ft. TOC was estimated to be approximately 2% and Ro from 1.0 to 1.6%. In the shallower portions, the Sembar Shale, is in the oil and wet gas windows, with the lower limit of the oil window at about 4,000 ft and the wet gas/condensate window at 6,000 to 10,000 ft. In the deeper portions of the basin below 10,000 ft, the Sembar Shale enters the dry gas window.
The prospective area of the Ranikot formation has a thickness of 1,000 to 3,000 ft, with a net shale thickness of 200 ft. TOC is estimated to be 2% and thermal maturity of 0.7 to 1.0% Ro, placing the Ranikot Shale in the oil window. Besides the Shale Oil and Gas development, where Canada holds a tremendous technological and competitive advantage, Pakistan has numerous opportunities in conventional oil and gas too. Although the first commercial discoveries were made as early as 1915, to date only ~2,500 Exploration and Development wells have been drilled with an exploration density of 1 well per 800 sq. km. As a result, Pakistan is severely handicapped in its energy supply. The production of oil is only 100,000 barrels per day against a demand of around 500,000 barrels per day.
Similarly, domestic Gas production is close to 3.3 BCF/D against a demand of 4.4 BCF/D. To boost investment in the Oil and Gas sector. Pakistan government has implemented some pricing incentives and Royalty benefits in its Petroleum Policy of 2012, such as indexing of Wellhead Gas Price to International Crude Oil prices. As an example, in KP province the gas price can go up to US $6.6 per million BTU when crude oil price goes up to the US $110 per barrel. For tight gas, there is an additional premium of up to 40% on these prices. Specific policies and pricing incentives on Shale Oil and Gas are still under development.
In this backdrop, Canadian companies and organizations can offer world-class cost-effective expertise to help Pakistan develop its conventional and unconventional resources through upstream, midstream and downstream activities and services.
This mission aims to do just that, while at the same time supporting Canadian companies expand into new markets, grow their business and grow Alberta’s and Canada’s economy.
The mission aims to show the Pakistan oil and gas operator and service companies Canada’s expertise in conventional and unconventional resource development. This spans a wide range of companies possessing technology such as drilling & fracking wells more cost-effectively to companies making oil and gas production more environmentally sustainable.