Significant Oil and Gas Discovery in Pakistan’s Territorial Waters Sparks Economic Optimism: Report
A substantial petroleum and natural gas deposit has been discovered in Pakistan’s territorial waters, a find so significant that its extraction could potentially reshape the country’s economic future, according to a media report.
DawnNewsTV cited a senior security official on Friday, stating that the discovery followed a three-year survey conducted in partnership with a friendly country to confirm the presence of these oil and gas reserves. The survey has enabled Pakistan to pinpoint the location of the deposits, and relevant departments have notified the government about the resources located within Pakistani waters.
Describing the initiative as part of a ‘blue water economy’ strategy, the official mentioned that proposals for bidding and exploration are currently being reviewed, suggesting that exploration activities could commence in the near future. However, the official also noted that the process of drilling wells and extracting oil may take several years. Beyond oil and gas, the ‘blue water economy’ could yield other valuable minerals and elements from the ocean.
The official emphasized that swift action and timely initiatives could help transform the country’s economic landscape. Some estimates suggest that this discovery could constitute the fourth-largest oil and gas reserves globally.
Currently, Venezuela leads with around 3.4 billion barrels of oil reserves, while the U.S. has the largest untapped shale oil reserves. Saudi Arabia, Iran, Canada, and Iraq round out the top five.
Former Ogra (Oil and Gas Regulatory Authority) member Muhammad Arif, speaking to DawnNewsTV, urged caution despite the optimism. He explained that there is never a 100 percent guarantee that the reserves will be as expected.
When asked if these reserves could meet Pakistan’s energy needs, Arif said it would depend on the size and recovery rate of production. “If it’s a gas reserve, it could replace LNG imports; if it’s oil, we could substitute imported oil.”
However, he warned that it remains “wishful thinking” until further analysis of the reserves is done and drilling begins. He noted that exploration alone would require a substantial investment of around $5 billion and could take four to five years to extract the reserves from an offshore location.
If the exploration proves successful, additional investment will be necessary to develop the infrastructure for extracting and producing fuel, Dawn reported.