Commercial gas production begins from OGDCL’s Sujawal Well-1

OGDCL reports the well is producing 1.5 MMSCFD of gas, integrated into the SSGC network

The Oil & Gas Development Company Limited (OGDCL) announced on Monday the start of commercial production of tight gas from its Nur West Well-1, located in Sindh’s Sujawal district.

This development follows the federal government’s introduction of the Tight Gas (Exploration & Production) Policy 2024 earlier this year. The policy features an innovative pricing structure aimed at encouraging the exploration and production of unconventional hydrocarbon resources.

To boost activity in this sector, the policy offers a 40% premium on the zonal price, as outlined in the Petroleum (Exploration and Production) Policy 2012. The Council of Common Interests (CCI) later approved the policy, according to The News.

The Nur West Well-1, owned entirely by OGDCL, was drilled to a depth of 2,975 meters. OGDCL, the country’s largest exploration and production company, had previously announced the gas discovery from Sujawal Well-1 on April 8 this year. “OGDCL is the sole operator with a 100% stake in the Nur Development & Production Lease (D&PL),” the company stated.

In the latest statement, OGDCL said the well currently produces 1.5 MMSCFD of gas with a wellhead pressure of 1050 PSI from the Lower Guru formation (“A” Sand).

The gas has been connected to the Sui Southern Gas Company Limited (SSGCL) system, bolstering the national gas supply.

Due to the tight formation of the reservoir, conventional testing methods were unsuccessful, prompting the company to employ hydraulic fracturing to make production viable.

Hydraulic fracturing, or “fracking,” is a method used to extract natural gas and oil from deep shale formations. Operators inject water, sand, and chemicals into horizontally drilled wells to fracture the shale and release gas or oil, according to the NIH.

‘Tight gas’ refers to natural gas extracted from reservoir rocks with low permeability, requiring significant hydraulic fracturing to achieve economically viable production.