Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has successfully revived its Dars West-2 oil well in the Tando Allah Yar district of Sindh, marking a crucial milestone in the company’s operations. The revival has led to the resumption of hydrocarbon production from a new interval in the well, specifically the B-Sand of the Lower Goru Formation.
Key Developments in the Revival
The Dars West-2 Well, located in OGDCL’s Dars West Development and Production Lease (D&PL) in Sindh, initially saw a decline in production after it was completed in January 2024. The well was originally perforated and integrated into the production system in the C-Sand interval of the Lower Goru Formation. However, due to a significant drop in wellhead production, the well ceased to flow on September 24, 2024.
In response, OGDCL carried out a detailed analysis, including a Bottom Hole Pressure & Temperature (BHP&T) survey, to evaluate the potential for further production from the C-Sand interval. The results indicated no further production prospects in the C-Sand, prompting OGDCL to isolate this interval and move forward with a fresh approach. The company successfully perforated and completed the well in the B-Sand interval of the Lower Goru Formation, which led to the revival of production.
Current Production Output
Following the successful intervention, the Dars West-2 Well is now contributing:
- 200 barrels per day (bpd) of oil
- 8 million standard cubic feet per day (mmscfd) of gas
- 37 metric tons per day (mtd) of Liquefied Petroleum Gas (LPG)
The produced gas is being processed at OGDCL’s Kunnar Pasakhi Deep-Tando Allah Yar Plant, with the processed gas being integrated into the Sui Southern Gas Company Limited (SSGCL) network. This integration supports the national gas supply, contributing to Pakistan’s energy needs.
Strategic Importance of Sindh Operations
The Dars West-2 Well is a key asset within OGDCL’s Sindh-based operations. The revival of this well showcases the company’s focus on maximizing hydrocarbon recovery in the region through innovative and efficient rigless interventions. OGDCL’s commitment to advanced techniques and rigorous assessments ensures the continuous optimization of its assets in Sindh, which remains a core area for the company’s overall production strategy.
Joint Venture Partnership
OGDCL holds a 77.5% working interest in the Dars West-2 Well, while GHPL (Government Holdings (Private) Limited) holds a 22.5% carried interest as a joint venture partner. This collaboration strengthens OGDCL’s position in Sindh and highlights the importance of partnership models in the country’s energy sector.
Broader Impact and Financial Performance
OGDCL’s successful revival of the Dars West-2 Well comes at a time when the company continues to focus on enhancing its operational efficiency. The company had earlier reported a profit-after-tax (PAT) of Rs 41.02 billion for the quarter ending September 30, 2024, which represented a 16% decline compared to the same period in the previous year. Despite this, OGDCL remains a dominant player in Pakistan’s oil and gas sector, with ongoing efforts to maximize production from existing fields while exploring new opportunities for growth.
The revival of the Dars West-2 Well in Sindh is a testament to OGDCL’s ability to manage and optimize its assets effectively, ensuring the continuous supply of energy resources crucial for Pakistan’s economic growth and energy security.
