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Monday, December 6, 2010

OGDCL is Inviting Partners for Gas Development in Jhal Magsi

Oil and Gas Development Company Limited (OGDCL) is inviting tenders for building a gas processing plant in Jhal Magsi. The Jhal Magsi Field is located about 5 KM North East of Jhal Magsi Town, District Dera Murad Jamali, Baluchistan Province.

The initial production from the proposed gas processing plant will be around 15 million cubic feet per day (mmcfd). There are proven gas reserves from two wells while three others are being drilled. The field has high contents of H2S, requiring removal before gas is injected into the transmission network.

Experts predict the possibility of oil being found in the same lease block and the OGDCL may soon give the nation good news in this regard. Although there is little information about the Jhal Magsi gas field in the public domain, the reserves may be larger than a number of existing fields in Sindh, Balochistan and Khyber-Pakthunkhwa.

The company expects the Zin Block in Baluchistan to generate its first gas flows within two years. The Zin block is estimated to have about 9-10 trillion cubic feet (TCF) of gas reserves and we are moving in the area in a couple of weeks to start drilling.

The government is playing down the Jhal Magsi discovery for political reasons. Independent economists hope that Jhal Magsi reserves will help bridge the domestic demand and supply gap. The local industry, already reeling under the effects of excessive power outages, will also get some benefit.

There are also bright chances of finding oil and gas reserves in the Bolan block, particularly in a hilly track near Dhaddar. Foreign firms are engaged in exploring oil and gas in this part of Balochistan. The federal government is providing adequate security to firms exploring oil and gas in this block.

OGDCL and other companies are facing difficulties in carrying out oil and gas exploration in Marri and Bugti tribal territories for political reasons as local tribesmen are demanding full control over their resources.

The people of the area are not prepared to gave Pakistani or foreign companies to exploit there resources only for few jobs they want to be the master of their lands and they must decide on which conditions their natural resources should be exploited, are not prepared to abandon their opposition to Western exploration companies operating in the province, fearing that they will ultimately take over control of their lands.

Almost all companies exploring oil and gas in the Marri and Bugti regions had stopped working after attacks on their officials by Baloch militants.

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