Karachi, April 22, 2024 – In a significant development for Pakistan’s energy sector, Mari Petroleum Company Limited (MPCL) revealed on Monday that it has discovered oil at the Shawal-1 exploratory well in the Sindh province.
This announcement marks the first oil find in the Mari D&PL area, traditionally known for its gas production since 1967.
The discovery was communicated to the Pakistan Stock Exchange (PSX), underlining its potential impact on the country’s oil landscape and MPCL’s position in the market. The Shawal-1 well, spud on January 27, 2024, reached a total depth of 1,136 meters, targeting the Ghazij Formation, known for its complex geological structure.
The initial tests from the well have been promising, producing 1,040 barrels of 30 degree API crude oil per day with 12% Basic Sediment & Water (BS&W). Additionally, the well has shown a production capacity of 2.5 million standard cubic feet per day (MMSCFD) of associated gas. These outputs were achieved at a wellhead flowing pressure (WHFP) of 953 pounds per square inch (Psi) using a 32/64 inch choke size.
The oil and gas sector analysts have reacted positively to this news, noting that the discovery could significantly boost MPCL’s output and financial performance. The commercial viability of the Shawal-1 well looks promising given the initial production rates and could attract further exploration in the region,” an analyst commented.
Mari Petroleum, which operates the Mari D&PL with a 100% working interest, has been a key player in Pakistan’s energy sector, primarily engaged in the exploration, development, and production of hydrocarbons. Established in 1984, MPCL has contributed significantly to the national grid, and this new discovery is expected to further enhance its contributions.
The discovery of oil in a region predominantly known for gas production also points to the unexplored potential of Sindh in the hydrocarbon sector. The government of Pakistan has recently incentivized oil and gas exploration and production through regulatory reforms and fiscal incentives, aiming to reduce the country’s heavy reliance on energy imports.
With this new development, MPCL plans to conduct further appraisal activities to assess the commercial feasibility and the potential reservoir size of the Shawal-1 discovery. “Further exploration will provide us with deeper insights into the geological structure and help us optimize the extraction process,” added CEO Faheem Haider.
The successful extraction of oil not only promises to enhance MPCL’s operational dynamics but also contributes to the national economy by potentially reducing import bills and strengthening energy self-sufficiency. As MPCL continues to explore and develop this new asset, the eyes of the energy sector — both domestic and international — will undoubtedly be on the impacts this discovery will have on Pakistan’s broader energy landscape.
