OGDCL Starts Commercial Gas Production at Sujawal Well-1

Summary:

• OGDCL starts commercial production of tight gas from the Nur West Well-1 in Sindh.
• This development is part of the new Tight Gas Policy 2024, offering a 40% premium to encourage exploration.
• The well produces 1.5 MMSCFD of gas and has been integrated into the national gas network.

Oil & Gas Development Company Limited (OGDCL) has announced the start of commercial production of tight gas from its Nur West Well-1, located in Sindh’s Sajawal district. This milestone follows the federal government’s introduction of the Tight Gas (Exploration & Production) Policy 2024, designed to stimulate the exploration and production of unconventional hydrocarbon reserves.

The new policy offers a 40% premium over the zonal price set in the Petroleum (Exploration and Production) Policy 2012, aiming to incentivize activity in this sector. The Council of Common Interests (CCI) has approved this policy, further encouraging efforts in tight gas production.

OGDCL’s Nur West Well-1, drilled to a depth of 2,975 meters, is now producing 1.5 million standard cubic feet per day (MMSCFD) of gas with a wellhead pressure of 1050 PSI. The gas is sourced from the Lower Guru formation and has been integrated into the Sui Southern Gas Company Limited (SSGCL) network, enhancing the national gas supply infrastructure.

The tight gas was extracted using hydraulic fracturing, or “fracking,” a technique necessary due to the low permeability of the reservoir’s rocks. This method involves injecting water, sand, and chemicals into the well to create fractures, allowing the gas to flow more freely.