Business

Oil and Gas Development Company Revives Dars West-2 Well in Sindh

Introduction: A Strategic Revival in the Oil and Gas Sector

The Oil and Gas Development Company Ltd. (OGDCL), a key player in Pakistan’s energy sector, has successfully revived the Dars West-2 Well, located in the Tando Allah Yar district of Sindh. The well is a significant part of the company’s operations in the Dars West Development and Production Lease (D&PL), where OGDCL serves as the operator with a 77.5% working interest, while GHPL holds a 22.5% stake.

This revival marks an important milestone for the company, showcasing its ability to enhance oil and gas production through timely interventions. In this article, we will delve into the details of the revival process, its importance, and the operational impacts on the local and national energy supply.

Background of the Dars West-2 Well

Location and Geological Significance

The Dars West-2 Well is situated in the Sindh region, a major oil and gas hub of Pakistan. Sindh has historically been a crucial area for the exploration and production of hydrocarbon resources, with significant discoveries made in the Lower Goru Formation, which is known for its oil and gas reserves.

The well is part of the Dars West Development and Production Lease, a large-scale project involving various technical and operational challenges, especially considering the complex geological formations. OGDCL has been actively involved in the management and production from this lease, and the successful revival of the Dars West-2 Well further solidifies the company’s standing in the oil and gas industry.

The Revival Process: Overcoming Challenges

Initial Production and Subsequent Decline

The Dars West-2 Well was initially completed in the C-Sand of the Lower Goru Formation, an area known for its productive potential. The well was integrated into the production system on January 31, 2024, with promising initial output. However, by September 24, 2024, the well ceased to flow due to a decline in wellhead production. This sharp decrease raised concerns over the long-term viability of the well.

Technical Assessment and Strategic Adjustments

Upon the cessation of flow, OGDCL initiated a series of diagnostic measures, including a bottom-hole pressure and temperature survey. These tests revealed that the C-Sand interval, originally targeted for production, no longer held significant potential for continued extraction. The company’s engineers then implemented a well-integrity protocol by isolating the C-Sand interval and focusing on alternate zones that could potentially yield better results.

Following this comprehensive analysis, the company decided to perforate and complete the well in the B-Sand of the Lower Goru Formation. This move demonstrated OGDCL’s commitment to effective resource management and operational flexibility in maximizing production from its wells.

Current Production and Output Metrics

Restored Output Levels

With the well successfully perforated in the B-Sand, the Dars West-2 Well resumed production and is now contributing 200 barrels of oil per day (bpd), 8 million standard cubic feet per day (mmscfd) of gas, and 37 tonnes per day (mtd) of liquefied petroleum gas (LPG). This revival is a significant achievement, as it brings the well back into active production, contributing to the national energy supply.

Integration with National Energy Network

The gas produced from the Dars West-2 Well is processed at the Kunnar Pasakhi Deep-Tando Allah Yar Plant. The processed gas is then integrated into the Sui Southern Gas Company Ltd (SSGCL) network, supporting the national gas supply system. This integration plays a crucial role in meeting the country’s energy demand, particularly in the southern regions.

Economic and Operational Benefits

The revival of the Dars West-2 Well is not only a technical success but also an economic one. By bringing the well back into production, OGDCL ensures that the resources extracted from the well contribute to the national economy, provide energy security, and support local industries dependent on oil, gas, and LPG supplies.

Moreover, the successful revival enhances OGDCL’s financial position by increasing its production output, which can lead to greater revenue generation. The strategic decision to focus on long-term production from key wells, such as Dars West-2, aligns with the company’s broader goals of optimizing resource extraction and enhancing profitability.

OGDCL’s Role in Pakistan’s Energy Landscape

Leadership in the Oil and Gas Sector

OGDCL’s success in reviving the Dars West-2 Well is a testament to its leadership in Pakistan’s oil and gas sector. As the largest exploration and production company in the country, OGDCL plays a critical role in maintaining the stability of the energy sector. The company’s expertise in managing complex oil and gas operations, coupled with its technical know-how, allows it to effectively handle challenges such as declining production and well performance issues.

Contribution to Energy Security

The revival of wells like Dars West-2 contributes significantly to Pakistan’s energy security. The country’s dependence on oil and gas imports makes it vulnerable to external market fluctuations. By maximizing production from domestic sources, OGDCL helps reduce this dependency and strengthens Pakistan’s energy self-sufficiency.

Strategic Future Developments

OGDCL continues to explore and develop new fields across Pakistan, with the Dars West-2 Well revival serving as a model for future operations. The company remains committed to improving its exploration and production capabilities while adhering to environmental and safety standards. Furthermore, OGDCL’s collaboration with local and international partners ensures access to the latest technology, which is critical in navigating the challenges of modern oil and gas exploration.

Impact on Local Communities and Environment

Supporting Local Communities

The revival of the Dars West-2 Well brings direct and indirect benefits to the local community. Local labor is employed during the drilling and production processes, which creates jobs and stimulates the regional economy. Additionally, the oil and gas industry supports local businesses by providing a stable supply of energy resources.

Environmental Considerations

OGDCL’s operations are carried out with a focus on minimizing environmental impact. The company follows rigorous environmental guidelines and implements best practices in its operations. From waste management to spill prevention, OGDCL ensures that its projects, including the Dars West-2 Well revival, comply with environmental standards.

Conclusion: A Milestone in OGDCL’s Operations

The successful revival of the Dars West-2 Well highlights OGDCL’s ability to adapt to changing conditions and maximize production from existing assets. This achievement reinforces the company’s position as a leader in Pakistan’s energy sector while contributing to the country’s energy security and economic growth.

OGDCL’s ability to revitalize wells and optimize resource extraction processes is crucial for sustaining long-term energy production. The revival of Dars West-2, combined with ongoing efforts in exploration and technology integration, will continue to play a pivotal role in Pakistan’s energy future.

FAQs

1. What is the Dars West-2 Well, and where is it located? The Dars West-2 Well is an oil and gas well located in the Tando Allah Yar district of Sindh, Pakistan. It is part of the Dars West Development and Production Lease, operated by OGDCL.

2. How much oil and gas is the Dars West-2 Well producing? The Dars West-2 Well is currently producing 200 barrels of oil per day (bpd), 8 million standard cubic feet per day (mmscfd) of gas, and 37 tonnes per day (mtd) of liquefied petroleum gas (LPG).

3. Why did the Dars West-2 Well stop production initially? The well ceased production due to a decline in wellhead production, leading OGDCL to conduct a series of technical assessments that identified no further prospects in the C-Sand interval.

4. How was the Dars West-2 Well revived? The well was successfully perforated and completed in the B-Sand of the Lower Goru Formation after isolating the C-Sand interval, leading to a restoration of its production capacity.

5. How does the Dars West-2 Well contribute to Pakistan’s energy supply? The gas produced from the Dars West-2 Well is processed at the Kunnar Pasakhi Deep-Tando Allah Yar Plant and integrated into the Sui Southern Gas Company Ltd (SSGCL) network, supporting the national gas supply.

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