Pakistan is the sixth most populous country in the world. Due to a variety of factors there is a major gulf between Pakistan’s energy potential and its ability to achieve that potential. And that is clearly illustrated in the country’s natural gas sector.
While Pakistan’s conventional natural gas reserves – 24 trillion cubic feet – are declining, the country is sitting on an estimated 105 trillion cubic feet of shale gas. For now, there are too many obstacles to expect much development in Pakistan’s unconventional sector, but there are still opportunities for gas drillers in the country.
One of the largest gas producers is OMV (VIE: OMV). And OMV just announced a major new natural gas discovery on October 12 from its Latif South-1 well, located in the Latif block of Sindh Province. The test well posted some promising figures, with flows of 2,500 barrels of oil equivalent per day (boe/d). OMV believes that the discovery opens up new opportunities in the region. The Austrian company will continue to appraise the well and assess its holdings to confirm the size of the gas discovery. The well drilled by OMV is located just 25 kilometers south of the Latif gas field, and as such, it is well positioned to tie into existing infrastructure, such as gas processing facilities.
OMV holds a 33.4 percent stake in the project, along with its joint venture partners Pakistan Petroleum Limited (OTCMKTS: PKKKY) with a 33.3 percent stake,…