ISLAMABAD - In a significant oil discovery in the energy-starved country, Mari Gas company has discovered an oil reserves near Jhelum, which can produce up to 5500 barrels per day.

According to Mari Gas announcement on Friday, oil was discovered in Ghauri X-1. This 3800-meter deep well, is located at village Dhemak in district Jhelum.

In final testing, the Ghauri X-1 Well flowed oil 22 Api gravity from Sakessar Formation at flow rate of 5500 barrels/day with 1100 psi pressure (Post-Acid) at 32/64” choke size, the company said. Company estimated reserves of this well at 22 million barrels. It also expects additional volume in the Kussak Formation, where oil flowed at the rate of 136 barrels per day with nitrogen kick off owing to the tight nature of the reservoir.   Mari Company claims that this newly discovered well is among the top ranking oil-producing wells in the country.

Mari Petroleum Company Limited (MPCL) is operator of Ghauri Joint Venture (GJV), Pakistan Petroleum Limited (PPL) and MOL. In this joint venture MPCL has 35 percent work interest, PPL 35 percent while and MOL has 30 percent shares. This is the second discovery on company’s credit as it recently discovered gas reserves in Sujjal Well in Thatta District of Sindh Province.

The officials told The Nation that oil was discovered in Ghauri X-1, earlier but it was formally announced on Friday after testing and approvals from Ministry of Petroleum. The companies announced discoveries only after the approval and permission of Director Concessions of Ministry of Petroleum. MPCL is presently operating two Development & Production Leases, 9 Exploration Blocks and has joint venture interest share in six other Exploration Blocks.

According to PSDP document, during 2013-14, crude oil production in the country was 85000 barrels per day.