Dawood University of Engineering & Technology, Karachi.

Inter-departmental Presentation Competition

Contemporary Engineering Challenges and Technical Issues in Pakistan

“Pakistan is rich in resources but poor in their

management” - Oil and Gas Perspective

Group Members :
Yasir Arfat Khizri DUET – 12 – PG - 223
Muhammad Ali DUET – 13 – PG – 02
Muzammil Hussain DUET – 14 – PG - 18
Table of Contents
Maximum Resources and their minimum
utilization.

Reasons of poor management and affects on

environment.

Remedies and recommendations to meetup

these challenges.
Introduction
Pakistan is a country which is very rich in natural and mineral
resources, almost we have everything here around us and the only
problem that leads us to lack is poor management. We have wind
energy, solar energy, bio-energies and a lot of other energies but
the problem is they are not utilized. Oil and Gas Industries in
Pakistan are not applying the modern techniques in order to
maximize the production and minimize the challenges due to various
reasons.

In this presentation we will discuss :

What are the approaches of Pakistani resources and are limitations?
What could have been achieved rather than what is achieved?
What can be achieved rather than what is being achieved?
Resources
 Pakistan Has Potential Of 27 Billion Barrels Of Oil & 282 Trillion
Cubic Feet Of Gas Resources and Production
 Pakistan Has The Potential Of 185 Billion Tons Coal Equivalent To
618 Billion Barrels Of Crude Oil
 Pakistan Can Produce 100000 MW Electricity For Up-Coming 200
Years By Thar-Coal Project
 If Coal At Thar-Coal Project Is Converted Into Oil By Gasification It
Will Generate $2.5 Trillion Dollars
 At Riko-Deq Pakistan Has 12.3 Million Tons Of Copper & 20.9 Million
Ounces Of Gold Reserves
 Riko-Deq Project Of Copper & Gold Reservoir Has A Worth Of $260
Billion Dollars To $3 Trillion Dollars
 Currently Pakistan Is Exploring 52 Minerals Like Cobalt, Zinc, Lead,
Limestone, Chromite, Marble, China-Clay, Gypsum & Bauxite etc.
 2nd Largest Coal Reserves
 2nd Largest Salt Mines
 5th Largest Gold Reserves
 7th Largest Copper Reserves
 6th Largest Gas Producing Capacity In Asia
Pacific
 436.2 Million Barrels Of Proven Oil Reserves
 31.3 Trillion Cubic Feet Of Proven Gas
Reserves
Problems being faced
 Pakistan is yet not sufficient in meeting up the oil and gas
demands.
 Pakistan is also lacking in providing the electricity demands.
 Sui Southern Gas Company Limited is facing mega loses in finance
due to heavy leakages of gas and UFG (Unaccounted For Gas) – The
gas which has no accountancy. If we just talk about the main M.A
Jinnah Road from Dawood University of Engineering & Technology
till Main Jail Chowrangee then by a leakage survey it was found
that every day the company is facing a loss of 2 lac rupees which
leads to 60 lacs monthly loss and 72 crore rupees loss every year.
 CNG load shedding is frequently observed twice in a week.
 Environment is affected every day by different pollutions and
many environmental Hazards are created by different industries.
An overview of oil & gas industry
Pakistan’s first exploratory well was drilled near Kundal, Punjab in
1887
First oil discovery at Khaur, Punjab was in 1915.
Total exploratory wells drilled in Pakistan are about 653.
Total Oil ad Gas discoveries in Pakistan are 185.
Oil Production in Pakistan by this year is around 68,670 BBL / D
The Oil Consumption by this year is 345,000 BBL /D
Gas Production is about 8.8 BCF / D
Where as the consumption is about 4.2 BCF / D

All of these are the major and challenging issues currently available.
Causes
 Lack of Management – The main reason.
 Choke size increment – The major issue for decline in well life.
 Well head issues.
 EOR – The techniques are not being implemented.
 Reservoirs are not managed.
 Lack of Future Planning.
 Un-Accounted for Gas – A major issue all over the world and a larger
cause of decline of SSGC – Pakistan.
 Shale gas – A best way to capture oil and gas market (Unfortunately it
is not working in Pakistan)
 Environmental Hazards often occurred.
 Equipment's are not maintained properly.
Lack of management
Lack of management is the major reason of decline of oil and gas
industry here in Pakistan. Lack of management includes :

Hiring Policies
Meritorious Employment ( Feudal Involvements)
Lack of time management
Professional Jealousies
Monopolies
Politics ( This may include the politics within internal
aspects such as union formation, YES BoSS Services ! And
racism)
 Choke size increment and
well head issues
Choke size increment often declines the well life
which effects the production rate

Well heads are not maintained properly as a result

blow outs can occur.
E NHANCED O R IL ECOVERY

The tertiary stage of recovery is

also known as the, “Enhanced Oil
Recovery” method. This method
increases the rate of extraction oil
due to the mobility of oil.
The best suitable method for
Pakistani Reserves is Plasma Pulse
Technology and CO2 Injection.%
The original oil in place (OOIP) in
Pakistan is 30%.
Reservoir Management
The reservoir management is yet not being implemented in Pakistan
which causes well life decline and affects the production rate.
Simulation and modeling process are not implemented to optimize
the wells and production fields
Best reservoir management practices shall be in use.
Blind Newton Equation is not being used. (Dr.Hamdi Tchelpi – Italy)

What are they really doing in the fields?

Only Guesses. Yes just guesses on a larger scale for well placement
and even for reservoir management.
Lack of future planning
 Lack of future planning leads us to sudden decline of
production
 Major losses
 High Environmental Risks
 Environmental Hazards
 Safety Risk
 Ultimate lack of success !
Shale Gas
The best way to capture the
market.

Shalegas techniques are not

implemented in Pakistan

Shales are fine-grained
sedimentary rocks that can be
rich resources of petroleum and
natural gas
Environmental Hazards
Improper planning.

Toxic wastes not properly disposal.

Well treatments not studied for their possible impacts on

sub surface bio-diversity & mostly poisoning under water
aquifer.

Approximately 75% of the different private and govt. sector

industries and factories are affecting our environment which
is a major reason of GLOBAL WARMING.
Maintenance of Equipments
Proper maintenance of equipment's can be a reason to
avoid approximately 13% of the problems in petroleum
industries.

Improper management of equipment can cause disorder to

the system.

Unmaintained equipment’s can create environmental

hazards and may increase safety risks.
Remedies
 The valuable remedies always provide an optimistic approach to any sector.

 Petroleum and gas industry of Pakistan is now highly dependent on major

remedies to prolong its shadow in the world.

 If we want to compete in the market we must adopt these remedies in

order to have a prosperous future.

 The remedies which I have discussed in my slides can minimize the

deficiencies in oil and gas industry which must be prioritize.
Managerial strategies
 A need of managerial strategies can cope many issues in
oil and gas industry.

 A meritorious recruitment can be helpful in placement of

right person on right job.
 We need to clarify the process of implementing any
strategy.
 Time must be managed properly which can help us in
achieving our targets at their desired time interval.
 A jealousy factor among employees can be eradicated by
giving ownership to those who deserve it.
Choke size increment and well head
issues
The production of well must be taken on its appropriate
flowrate. The Government should regulate the choke sizes.

Blowouts can ruin any industry from its root so it must be under
highly concentration in dealing the well head issues intelligently.

Equipment's must be set on well head which can maintain and

read the bottom hole temperature & pressure on regular intervals.

In the case of any emergency we must have any contingency plan
which can handle any haphazard condition.
A method to enhance the recovery-EOR
 EOR can make an important contribution to Pakistan oil supply in long term.
 EOR Economics can be attractive.
 EOR techniques are being used all over the world except of Pakistan and are
producing over 40%-50% of the original oil in place
Why can we implement Shale technology?
 The recent estimates have
identified that Pakistan has
approximately 105 TCF of shale gas
& 9.1 billion barrels of shale oil.

 Shale gas are enough to cater to the

energy for the next 44 years while
shale oil is enough for 61 years.

 It is expected that development of

shale gas and oil will generate
around 320000 & 210000 jobs
against an annual production of 2.9
TCF gas & 125.54 million barrel
respectively.
Dominant and adoptable methods to cope
environmental issues in oil & gas industry

 Appointment of health & safety team can reduces the environmental

affects which is also polluting the surrounding areas.

 Corrosion inhibitors can minimize the concentration of toxic &

poisonous gases.

 Green completions can reduce methane emissions by as much as 95%

versus emitting straight into the atmosphere.

 Less flaring or wastage of gas can be a solution for environmental

problem.
SWOT Analysis & mismanagement
Significance of Planning in every section
of oil & gas industry
 Planning of a well starts from bottom.

 The geologic target, lithology, formation characteristics and bottom hole

temperature & pressure of well must be planned before drilled.

 Well location must not be chosen if any Uncertainty in wild cats occurs.

 Reservoir management plan must be planned properly i.e. flow behavior,

flow regime, fluid type, fluid characteristics must be known.

 The future estimation, development planning & production operation

activities can increase the life of well.
UFG-A technique to overcome gas need
in the region
A high penalty must be charged to gas thief
personnel.

Proper inspection of team must be assigned which

can check the pipe leakages on weekly basis.

Proper maintenance of pipelines must be under

consideration.

A special grease must be used to protect pipelines

from corrosion.
Sustainable development

If we implement best practices in exploiting the

resources in proper way which can cope
environmental hazards in oil & gas industry than
hydrocarbons will remain to sustainable Pakistan
economic development & prosperity for decades to
come. Yet meeting the Pakistan’s growing need for
energy must be reconciled with security of energy
supply & environmental protection.
Conclusion
 Oil and gas industry is known to be a back bone of any
economy, if we want to be a wealth nation we must
stable & properly utilize our natural reserves.
 Sustainable and well managed development, can only
be the answer to the problems currently faced by oil
and gas industry, which have made our country
energy deficient.
 Government supervision, proper engineering practices
and technological advancements can be the key in
solving contemporary engineering problems in oil and
gas.