Kandra block to start operation in this month

Islamabad: Petroleum Exploration (PEL), a local private sector oil and gas exploration and production company operating in Pakistan and abroad will start drilling operation in Kandra well-4 in third quarter of July 2008.

Kandra block is located in Khairpur district nearby Sukkur of Sindh. It will be a deep well.

For this purpose, PEL and its partners have hired a 1500 HP brand new state of the art rig from Weatherford for 18 months. The rig is equipped with draw-works. SCR system top drive blow, presenters and detection system for safety.

Partners in Kandar block are PEL (operator), FHL Canada, Government Holding (Pvt) Ltd (GHPL). A 361-km 2D seismic survey has been done in Karachi by SPA (CNPC) a Chinese company. Processing of the seismic data was done by Specturm Cairo and its data interpretation wads done by PEL operator and Frontier Holding Ltd, (FHL) a subsidiary of Jura Energy Corporation Canada.

After completing Kandara 4-deep well, this rig will drill well in Badin north, Badin south and Mirpur Mathelow concessions. PEL Chief Executive Officer (CEO) and chairman Zaheeruddin said here on Thursday that PEL has a strong technical team and have many on-shore and offshore concessions in deep waters of Pakistan. He said PEL is presently producing 35 mmcfd gas per day and was making its best efforts to explore and produce more gas to help Pakistan meet its growing energy needs.

Zaheeruddin added that PEL has partners in concessions such as OGDCL, PPL, Mari Gas Company Ltd and Government Holding (Pvt) Ltd (GHPL), Frontier Holding Ltd (FHL) Canada, Sherit Canada, and British Petroleum (BP) and all of them were co-operating and supporting PEL to fulfil its commitments for oil and gas exploration.

Zaheeruddin appreciated the government petroleum and power policies. He was also of the opinion that gas price offered to exploration and production (E&P) companies was on the low side. He suggested that the government which was considering many options to import gas and LNG from neighbouring countries at higher rates may give price as per international standard to local/national and multinational companies so that they could invest more money in oil and gas activities in Pakistan.

Zaheeruddin appreciated the policies of the ministry of Petroleum and Natural Resources for facilitating oil and gas companies to carry out their exploration and production activities in a conductive atmosphere.