Pakistan has discovered a significant reserve of petroleum and natural gas in its territorial waters, which could transform the nation’s economic landscape, according to a recent report.
A senior security official, quoted by DawnNewsTV, revealed that the reserves were confirmed after a comprehensive three-year survey conducted with assistance from a "friendly country."
The survey enabled Pakistan to pinpoint the precise location of the deposits, leading relevant departments to inform the government about the findings.
The discovery is seen as a major step towards tapping into the ‘blue water economy,’ a term used by the official to describe the potential of exploiting ocean resources.
Plans for bidding and exploration are currently under review, with the possibility of exploration work commencing soon. However, the official warned that drilling wells and extracting oil could take several years.
He emphasised that the blue water economy offers more than just oil and gas, noting the presence of other valuable minerals and elements that could also be mined from the ocean.
Some estimates suggest these newly found reserves may rank as the fourth-largest oil and gas reserves globally.
For comparison, Venezuela is believed to have the world’s largest oil reserves, with approximately 3.4 billion barrels, while the United States boasts the most extensive untapped shale oil reserves. Other top nations with large reserves include Saudi Arabia, Iran, Canada, and Iraq.
Despite the optimism surrounding the discovery, former Oil and Gas Regulatory Authority (OGRA) member Muhammad Arif has urged caution.
Arif noted that while the nation has reason to be hopeful, there is no guarantee that the reserves will meet expectations. He explained that the viability of the reserves depends on their size and the recovery rate.
“If it is a gas reserve, it could replace LNG imports, and if it’s oil, we might substitute imported oil,” Arif said. However, he described such expectations as “wishful thinking” until further analysis of the reserves is completed and drilling begins.
Arif also highlighted the substantial costs associated with exploration, estimating an initial investment of around USD 5 billion. He pointed out that it could take four to five years to begin extracting the reserves from the offshore location.
If the exploration proves successful, additional investment would be needed to develop the necessary infrastructure for drilling and fuel production.
The discovery could be a game-changer for Pakistan, but much depends on swift and decisive action to capitalise on this potential boon.
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