Region Report
Pakistan & Offshore Energy
Pakistan’s Offshore Drilling History
Offshore exploration for oil and gas in Pakistan specifically in Indus Basin Offshore area has a history stretching over six decades, characterized by both ambitious efforts and significant challenges.
By Hamna Ghias Sheikh
Despite drilling nearly 18 wells, the region remains largely unexplored, with only modest natural gas discoveries in Miocene sandstones. However, each exploration attempt has contributed valuable insights, laying the groundwork for future endeavors.
The journey began in 1961 when the American Sun Oil Company conducted seismic surveys and drilled three near-shore wells. Although these early efforts, along with those of German company Wintershall in the 1970s and the U.S.-based Husky later on, did not result in commercial hydrocarbon discoveries, the geological data gathered was crucial in shaping subsequent exploration strategies.
In the 1980s, exploration efforts intensified when Pakistan’s Oil and Gas Development Company Limited (OGDCL) partnered with Canadian firms to drill the PakCan-1 well. This effort, however, resulted in non-commercial gas quantities, underscoring the technical and environmental challenges inherent in the region. Similarly, the Sadaf-1 well drilled by another U.S. company in 1989 turned out to be dry, despite advanced seismic studies.
The 2000s saw renewed international interest in Pakistan’s offshore potential. In 2004, French oil giant TOTAL ventured into the deep waters of the Indus Basin with the Pak-G2 well, drilling to an impressive depth of 4,750 meters. Although the well was dry, it provided critical data on the region's complex geological formations. Shell followed in 2007 with the Anne-1X well, drilling to 3,250 meters. Despite the absence of significant oil or gas discoveries, these efforts enhanced the scientific understanding of the basin's subsurface structures.
The most recent and perhaps most high-profile attempt came in 2019 when ExxonMobil, in collaboration with ENI, OGDCL, and PPL, drilled the Kekra-1 well. Located 143 miles off the coast of Pakistan and at a depth of 6,200 feet, this project was Pakistan’s most ambitious offshore drilling venture. Expectations were high, with hopes that a major oil discovery could propel Pakistan into the ranks of the world’s top oil producers. Unfortunately, the venture wasn’t successful. However, according to experts, the critical misstep in Pakistan’s offshore exploration efforts has always been giving up after just a few attempts, leaving untapped potential languishing beneath the seabed. Without proper robust strategy to present to investors, the country has struggled to attract the necessary capital and expertise in offshore exploration.
The technical and infrastructural challenges the country face today are significant, but they are not insurmountable. By failing to address these issues head-on and develop a compelling case for investment, Pakistan has inadvertently stalled progress on what could be a transformative resource for Pakistan's energy future.
An essential aspect of addressing these challenges lies in the integration of successful methodologies from other countries. Notably, Chinese Geological Surveys have proven effective in gathering vital data for offshore exploration in Pakistan. These surveys have provided valuable insights into the complex geological formations of the Indus Basin, offering a clearer understanding of the region’s subsurface structures. The success of these surveys underscores the importance of leveraging international expertise and advanced technology to enhance Pakistan’s exploration efforts. By building on the comprehensive data already obtained by the Chinese, Pakistan can better target promising areas for future drilling, thereby reducing the risks associated with offshore exploration.
While past offshore exploration efforts in Pakistan's Indus Basin have faced significant challenges, the potential for future success remains considerable. To unlock this potential, Pakistan must focus on fostering international collaborations that bring advanced drilling technologies and expertise to the table. At the same time, implementing policy reforms that make the country a more attractive destination for foreign investment is crucial. Encouraging innovation and research, particularly in partnership with global experts, is essential. Moreover, maintaining a strong emphasis on environmental stewardship and risk management can position Pakistan for a breakthrough in offshore exploration. With strategic alliances and a renewed commitment to leveraging cutting-edge geophysical techniques, the Indus Basin may yet yield the substantial oil and gas resources that could transform Pakistan's energy landscape.
In essence, Pakistan's journey in offshore exploration has been long and arduous, yet each setback has brought the nation closer to a potential breakthrough. By learning from past challenges and embracing future opportunities with the right mix of technology, policy, and collaboration, Pakistan can navigate the complexities of offshore exploration and realize the full potential of its energy resources.
About the Author
Hamna Ghias Sheikh is a MPhil International Relations Scholar, Research Officer based in Lahore, Pakistan. She writes columns on international affairs, Pakistan affairs and geopolitics.