The security situation and flash floods in KP and Balochistan delayed the planned exploration/appraisal activities in Waziristan Block (Formerly, Bannu West Block), Hanna Block and Block-28. The Company proactively adjusted its plans and accelerated drilling of Mari Ghazij-1 exploratory well in Mari Field area, which resulted in a milestone discovery of good quality gas in January 2023.
Speen-1 exploratory well in Hanna Block was spud-in on February 28, 2023. The drilling is in progress and is expected to be concluded in June/July 2023.
Spud-in of Shewa-2 Appraisal Well in Waziristan Block and Maiwand X-1 exploratory well in Block-28 are expected in the last quarter of the current financial year.
Further, spud-in of Jhim East-1 exploratory well in non-operated Shah Bandar Block is expected during May 2023.
The Company drilled and successfully commissioned its first-ever horizontal well Mari-122H in the HRL reservoir of the Mari field during Q2 FY 2023. Building on that success, the Company has completed the subsurface evaluation and four more horizontal wells are planned to be drilled in HRL formation. First of these will be spud in the last quarter to the current financial year.
The Company has also completed drilling of Shaheen-3 development well to accelerate production from SML-SUL reservoirs and extend the plateau. The well has been successfully tested up to ~6.0 MMSCFD at a WHFP of ~290 psig (pre-acid). Further evaluation of the well is in progress.
Previously, development well HRL-121 was drilled and completed as a gas producer and workover of well MD-15 in the Mari Field has also been completed during the period.
MPCL seismic crew has completed acquisition of 228 sq. km 3D seismic data in the block. Subsequently, a prospect namely Bolan West has been identified, which is being matured for drilling. Wali West Block: MPCL seismic crew is engaged in acquisition of 472 line-km 2D seismic data. Currently, around 100 line-km data has been recorded and acquisition of remaining data is in
MPCL seismic crew is engaged in acquisition of 472 line-km 2D seismic data. Currently, around 100 line-km data has been recorded and acquisition of remaining data is in progress. The acquired data is being processed at Mari Seismic Processing Center. The Company is facing security challenges in the area and has taken all possible measures to ensure the safety of its personal.
As part of 3rd party business, MPCL seismic crew has commenced this third party 2D seismic data acquisition project and acquisition of data is in progress.
MPCL seismic crew has been mobilized to acquire 456 line-km (firm) and 164 line-km (Contingent) 2D seismic data. Camp has been established and parameter testing and commencement of field activities is anticipated shortly.
G&G studies and numerous others projects continued in different blocks to evaluate their hydrocarbon potential.
The Company’s own Gravity & Magnetic Survey Unit completed the survey in Sharan Block, while data processing and interpretation is in progress. A survey is also in progress in Wali West Block and around 50% stations have been acquired.
The Company successfully completed the construction of SGPC Phase-II facilities to process the low BTU gas from Goru-B reservoir of Mari Gas Field. Initially, 50 MMSCFD processed gas was being produced from which 47.5 MMSCFD gas was supplied to SNGPL, while the remaining 2.5 MMSCFD was used as fuel gas to operate the plant. Sales gas volume was ramped up gradually, hitting the incentive price threshold for the Goru-B reservoir on January 15, 2023 and subsequently achieving over 100 MMSCFD of sales gas on March 14, 2023.
The Company further enhanced its capacity of processing unutilized volume of HRL reservoir by 8 MMSCFD, which has allowed the Company to inject up to 68 MMSCFD dehydrated gas into national grid through SNGPL network.
Expeditious efforts are underway to install the Early Production Facilities (EPF) at Shewa-1 well. High level collaboration is being undertaken with SNGPL for timely completion of gas pipeline. After finalization of the contractual negotiations for supply of EPF processing facility with OPI, the contract has been signed on April 12, 2023. The Company is working to have the facility producing at the earliest which is highly dependent on the availability of a conducive security environment.
The Company has executed a Framework Agreement for the installation of Pressure Enhancement Facilities at Mari Field with Fertilizer customers namely, Fauji Fertilizer Company Limited, Engro Fertilizers Limited and Fatima Fertilizer Company Limited. The PEF project is aimed at maintaining HRL reservoir gas production plateau for gas supplies to the fertilizer plants. The project involves Field lease area to be financed by the Fertilizer Customers along with sub-surface activities to be undertaken by the Company.
The Company has undertaken two projects, namely Kill Lines Upgrade Project that will increase the ability for wells to be shut-in safely in case of any leak; and Valves Pits and Cellar Uplift Project to uplift sub-grade valves and cellar assemblies to enhance safety and improve asset integrity. Engineering for both has been completed, and the Company is focused on execution of these projects.
Following the Asset Integrity Management System (AIMS) framework multiple R&D pilot projects are being undertaken with the objective to employ advanced analytical tools and artificial intelligence. SGPC AIMS Phase-I is completed while Phase-II and III CTRs development is in progress. Multiple initiatives have been kicked-off including development of control system manual, ECDA survey of underground pipelines, integrity assessment of crude storage tanks, baseline inspection and Risk Based Inspection Study of SGPC.
Data analysis for defining wells operating envelops has been completed for all MPCL operated wells. Two corrosion logging campaigns were undertaken on older wells and results were found satisfactory. Schedule for Wellhead and X-mas tree integrity testing, maintenance and reporting mechanism has been prepared and rolled-out to fields for implementation. “Well Completion Design Manual” has been approved by management. “Well Integrity Manual” has been developed and is in approval process. Furthermore, draft has been prepared for “Well Risk Ranking Manual” and is under review.
The Company added four new exploration blocks namely South Pishin, Shaigalu, Tanishpa and Lugai, in its portfolio via participation in the bid round held in October 2022. Provisional award letters have been issued by the Government, while legal formalities for grant of exploration licenses and signing of concessions agreements of these blocks are underway. In addition, exploration licenses and petroleum concession agreements have been executed with the Government over five blocks (Mach, Dadhar, Sui North, Kalat West, Meeranpur), which were awarded in the bidding round held in April 2022.