Major oil and gas reserves discovered in Pakistani waters: report

Islamabad: A significant deposit of oil and natural gas has been discovered in Pakistan’s territorial waters, potentially transforming the country’s economic future, according to a media report.

A three-year collaborative survey with a friendly nation confirmed the presence of these substantial reserves, DawnNewsTV quoted a senior security official as saying on Friday. The geographic survey enabled Pakistan to pinpoint the exact location of the deposits, and the government has been notified.

Describing the discovery as part of efforts to tap into the "blue water economy," the official said plans for bidding and exploration are under consideration, with exploration expected to start in the near future. However, the process of drilling wells and extracting oil could take several years.

The official further noted that aside from oil and gas, the ocean holds other valuable minerals and elements that could also be exploited, underscoring the importance of acting swiftly to capitalise on these resources and improve Pakistan’s economy.

Some estimates suggest the discovery ranks among the world’s fourth-largest oil and gas reserves. Currently, Venezuela leads with around 3.4 billion barrels of oil reserves, followed by countries like the U.S., Saudi Arabia, Iran, Canada, and Iraq.

Former Oil and Gas Regulatory Authority (OGRA) member Muhammad Arif urged caution, noting that while the country should be optimistic, there is no guarantee that the reserves will meet expectations. Speaking to DawnNewsTV, he stated that the viability of the reserves depends on their size and recovery rate.

“If these are gas reserves, they could potentially replace LNG imports. If they are oil reserves, they may reduce reliance on imported oil,” he said. However, Arif warned that it remains “wishful thinking” until proper analysis of the reserves is conducted and drilling begins.

He also highlighted the high costs associated with exploration, estimating an initial investment of approximately USD 5 billion, and noted that it could take four to five years before production can commence. Further investment would be required to establish the infrastructure needed for extraction and fuel production if the reserves prove fruitful, Dawn reported.

Source-PTI