19-09-2012

Eni: significant gas discovery in Pakistan

Eni has made a significant gas discovery onshore Pakistan, in the Badhra Area B exploration concession, located in the Khirtar Fold Belt region, 350 kilometers north of Karachi.

The Badhra B North-1 exploratory well, which led to the discovery, was drilled at a total depth of 2,450 meters and encountered over 54 meters of net gas pay in two thick Cretaceous  sandstones  of the Mughal Kot Formation. During the production test, the well flowed high quality gas from the two reservoirs, respectively at 25  and 35 million standard cubic feet per day (mmscfd).

The size of the discovery is currently estimated at between 300 and 400 billion cubic feet of gas in place and its delineation will require  further appraisal wells.

The discovery is located 20 kilometers east of the Bhit gas processing facility, operated by Eni, which currently handles the gas production from the Bhit and Badhra fields. The drilling of Badhra North B-1 is part of Eni's new strategy in Pakistan which aims to refocus exploration activities in the neighboring areas to productive fields and confirms the presence of significant exploration potential that can be exploited  through the application of new geological models.

Eni has started discussion with the Pakistani regulator and the joint venture in order to speed up the production of the discovery through a long-term production test that will allow for the commercialization of gas, and help to reduce the national gas deficit. The short time-to-market for the development of the field is part of Eni's strategy to focus on the rapid development of conventional and synergistic assets.

Eni, through its subsidiary Eni Pakistan Limited, is operator of the block with a 40% stake in the development phase, together with partners Premier Oil Plc. (6%), Kufpec Pakistan limited (34%) and Oil & Gas Development Company Limited (20%).

Eni has been present in Pakistan since 2000 and is the largest producer in the country, with an average equity production at approximately 54,800 barrels of oil equivalent per day in 2011.