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Global Oil & Gas Discoveries 2024 Key Finds and Industry Impact

Global Oil & Gas Discoveries 2024 Key Finds and Industry Impact

The year 2024 was a big year for finding new oil and gas around the world. Many important discoveries were made, which had a big impact on the energy industry. These discoveries show how much better we’ve gotten at finding these resources and how much the world still needs energy. Here, we take a look at the most important discoveries of the year.

1. Guyana’s Offshore Discoveries – 11 Billion BOE

ExxonMobil, in partnership with Hess and CNOOC, continued its prolific exploration in Guyana’s Stabroek Block, with total recoverable resources estimated at around 11 billion barrels of oil equivalent (BOE). This development positions Guyana as a burgeoning petrostate with substantial economic growth prospects.

2. Kuwait’s Al-Nokhatha Field – 3.2 Billion BOE

Kuwait Petroleum Corporation announced a substantial discovery in the Al-Nokhatha field, located east of Failaka Island. The find includes approximately 2.1 billion barrels of light oil and 5.1 trillion cubic feet of gas, totaling around 3.2 billion BOE.

3. Namibia’s Orange Basin – 2 Billion BOE

Namibia’s Orange Basin has garnered significant attention following discoveries by companies like Galp. The Mopane field, for instance, is expected to commence production by 2030, potentially reaching a plateau of 211,000 BOE per day by 2037.

4. China’s Bohai Bay Discovery – 1.3 Billion BOE

China National Offshore Oil Corporation (CNOOC) announced a significant discovery in Bohai Bay, adding an estimated 1.3 billion BOE to the country’s reserves. This discovery reaffirms the potential of Bohai Bay as a key energy hub for China.

5. Colombia’s Historic Gas Find

Ecopetrol made a landmark gas discovery, marking the largest in Colombia’s history. While the exact volume of recoverable reserves has not been disclosed, the discovery is poised to significantly enhance the country’s energy security and reduce reliance on imports.

Global Oil & Gas Discoveries 2024 Key Finds and Industry Impact

Figure 1 Historical number of oil & Gas discoveries

6. Talos Energy’s Gulf of Mexico Discovery – 15 to 25 Million BOE

Talos Energy reported a discovery in the Ewing Bank 953 well in the Gulf of Mexico, with estimated reserves between 15 to 25 million BOE. Production is anticipated to begin by mid-2026, contributing to the region’s output.

7. Vår Energi’s Goliat Field Discovery

Vår Energi announced a new oil find in the Goliat field, located in the Barents Sea. Although the exact volume of reserves has not been disclosed, this discovery strengthens the field’s potential and opens opportunities for further exploration in the region.

8. Pakistan’s Bhittani Well Discovery

Oil and Gas Development Company Limited (OGDCL) reported a discovery in the Bhittani X-1 well located in the Bannu Basin. The hydrocarbons were encountered in the Middle Jurassic Samanasuk Formation, marking a significant milestone for Pakistan’s exploration activities.

Global Exploration Trends in 2024

Despite concerns about declining exploration activity in previous years, 2024 marked a resurgence in global oil and gas discoveries. Significant finds in regions like Guyana, Namibia, and Kuwait highlight renewed efforts and advancements in exploration technologies. While the industry continues to face challenges such as increasing operational costs and environmental pressures, these discoveries signal optimism for meeting future energy demands.

Conclusion

The discoveries of 2024 highlight both the potential and challenges within the oil and gas industry. While new reserves promise to bolster energy security for various nations, the overall decline in global discoveries suggests a need for continued innovation and strategic exploration to meet future energy demands.

Global Oil & Gas Discoveries 2024 Key Finds and Industry Impact

Figure 2 Countries with largest oil & gas projects of year 2022-23

References

ExxonMobil’s Stabroek Block Updates: ExxonMobil Official SiteKuwait Petroleum Corporation’s Al-Nokhatha Field Announcement: KPC Press Release

Namibia’s Orange Basin Developments: Galp Energy Reports

China’s Bohai Bay Discovery: CNOOC Official Announcement

Ecopetrol’s Gas Find in Colombia: Ecopetrol Newsroom

Talos Energy’s Gulf of Mexico Discovery: Talos Energy Press Release

Vår Energi’s Goliat Field Update: Vår Energi Official Site

OGDCL’s Bhittani Well Discovery: OGDCL Public Statement

What Caused Dinosaur Extinction Meteorite or Volcanism

What Caused Dinosaur Extinction Meteorite or Volcanism

The disappearance of dinosaurs is still one of Earth’s most fascinating mysteries. For years, scientists have argued about whether a giant meteorite or huge volcanic eruptions led to their extinction 66 million years ago. A recent study in *Science Advances* by climate experts from Utrecht University and the University of Manchester brings new insights. Their research shows that the Chicxulub meteorite was the main reason for the dinosaurs’ extinction, while volcanic activity had little to do with it.

Meteorite vs. Volcanism: The Great Debate

The Chicxulub meteorite crash in the Gulf of Mexico is well known as the huge disaster that wiped out the dinosaurs. But the massive volcanic eruptions in India, called the Deccan Traps, also played a role. These eruptions released a lot of CO₂, sulphur, and dust into the air, which changed the Earth’s climate. This caused short-term cooling and long-term warming. The question is: how much did these changes really affect the extinction of the dinosaurs?
What Caused Dinosaur Extinction Meteorite or Volcanism

Greg Price, Rhodri Jerrett and Lauren O’Connor sampling fossilised peats at West Bijou, USA. Photo: Tyler Lyson.

New Insights from Ancient Peats

The research team used ancient peat samples from the United States to study air temperatures around the time of these events. They found that a large volcanic eruption happened about 30,000 years before the meteorite hit, causing global temperatures to drop by 5°C. This cooling, caused by volcanic sulphur blocking sunlight, lasted for about 10,000 years. By 20,000 years before the meteorite impact, temperatures had returned to normal, helped by volcanic CO2 emissions.
Lauren O’Connor, a scientist from Utrecht University, said, “These volcanic eruptions and the release of CO2 and sulphur had a big impact on life on Earth. But these events happened thousands of years before the meteorite impact and probably didn’t play a major role in the extinction of the dinosaurs.”

The Fatal Blow: Chicxulub Meteorite Impact

New studies highlight the terrible damage caused by the Chicxulub meteorite crash. While volcanic activity can cause short-term climate shifts, the meteorite set off a chain of extreme disasters: massive fires, huge ocean waves, earthquakes, and a long period of darkness called an “impact winter” that blocked the sun and wiped out ecosystems.
Rhodri Jerrett from the University of Manchester explains, “The asteroid caused a series of events that destroyed life on Earth. We think it was the asteroid that finally caused the extinction.”

Reconstructing Earth’s Past Climate

The researchers used a new method to study old fossil molecules found in ancient soil layers. These molecules, made by bacteria, change their shape depending on the temperature of the environment. By looking at these changes, scientists were able to build a clear timeline of temperatures before the extinction event.
This approach not only helped understand when the volcanic activity and meteorite impact happened but also provided a fresh way to explore other important moments in Earth’s past.

Conclusion

The scientists tried a new way to study old fossil molecules discovered in ancient soil layers. These molecules, created by bacteria, change their form based on the temperature of their surroundings. By examining these changes, researchers could create a detailed timeline of temperatures before the extinction event.
This method not only helped figure out when the volcanic eruptions and meteorite strike occurred but also offered a new approach to studying other key events in Earth’s history.

Reference

According to a recent publication in Science Advances by O’Connor et al. (2024), the volcanic eruptions that occurred before the meteorite impact likely played a small role in the extinction event. You can read more about the study here.

Namibia Offshore Exploration and Lessons for Pakistan

Namibia Offshore Exploration and Lessons for Pakistan

Namibia Offshore Exploration and Lessons for Pakistan

Namibia’s offshore exploration history offers a remarkable case study for nations like Pakistan aiming to unlock their hydrocarbon potential. Both countries have faced challenges in establishing offshore oil and gas production despite promising geological settings. By examining Namibia’s approach and outcomes, Pakistan can identify actionable strategies to rejuvenate its offshore exploration efforts.

Namibia’s Offshore Exploration Journey: Key Phases and Insights

  1. Early Licensing Rounds (1969–1979)

Namibia initiated its offshore exploration in 1969, awarding eight blocks during the first licensing round. The Kudu Gas discovery (Kudu 9A-1) by Chevron, Regent, and SOEKOR marked the first gas find in the Orange Basin. However, UN sanctions in the late 1970s halted international participation, with rights transferred to the nascent national oil company, SWAKOR.

2. Renewed Exploration Efforts (1987–1990)

With collaboration from Halliburton, SWAKOR conducted seismic surveys and drilled additional wells (Kudu 9A-2 and 9A-3). Despite limited success, the groundwork was laid for modern exploration techniques and resource assessment.

  1. Post-Independence Licensing Rounds (1990s)
  • Namibia launched a series of licensing rounds from 1991 to 1999, awarding blocks to international players like Shell, Chevron, and Sasol.
  • Exploration activity surged with over 88,000 km of 2D seismic data collected and multiple exploratory wells drilled. While discoveries were elusive, critical insights into basin geology were gained.
  1. Open Licensing System and Modern Discoveries (1999–Present)

The adoption of an open licensing system in 1999 attracted numerous global operators, including Shell and TotalEnergies. Key outcomes included:

  • Enhanced seismic data acquisition with advanced 2D and 3D surveys.
  • Significant light oil discoveries in 2021/2022 by Shell Namibia (Graff-1) and TotalEnergies (Venus-1X.T1) in the Orange Basin.

 

Namibia Offshore Exploration and Lessons for Pakistan

Figure courtesy to NVENTURES.

Pakistan’s Offshore Exploration: Challenges and History

  1. Early Attempts (1960s–1980s)

Pakistan’s offshore exploration began in 1963, with Sun Oil drilling three wells in the Indus Delta. Subsequent efforts in the 1970s and 1980s by Wintershall, Marathon, and OGDCL revealed limited success. Key findings included gas shows in the Miocene and shaly source rocks beneath the Deccan volcanics.

  1. Exploration Stagnation (1990s–2010s)

Despite the discovery of gas at Pakcan-1, efforts by international operators such as Total Energies, Oxy, and PPL yielded no major breakthroughs. The most recent well, Kekra-1 (2019), drilled by ENI, failed to confirm commercially viable resources.

  1. Current State

Pakistan’s offshore remains underexplored, with technical challenges, governance issues, and a lack of consistent policy direction deterring investment.

Namibia Offshore Exploration and Lessons for Pakistan

Lessons from Namibia for Pakistan

  1. Persistence and Long-Term Vision
    Namibia’s success came after decades of effort and numerous dry wells. Pakistan must adopt a similar mindset, understanding that significant discoveries often require persistence over time.
  2. Investor-Friendly Policies
    Namibia’s transparent regulations and open licensing system encouraged international participation. Pakistan must revise its offshore policies to offer competitive fiscal terms, ensuring clarity and fairness for foreign investors.
  3. Data-Driven Exploration
    Namibia invested heavily in seismic data acquisition and geological modeling, reducing exploration risk. Pakistan should prioritize similar initiatives, including basin analog modeling and leveraging advanced seismic technologies.
  4. Strategic Partnerships
    Collaboration with supermajors like Shell and TotalEnergies brought cutting-edge technology and expertise to Namibia. Pakistan should foster partnerships with global leaders in offshore exploration.
  5. Political and Economic Stability
    A stable environment is crucial for attracting and retaining investors. Pakistan must focus on creating a favorable business climate, addressing governance issues, and ensuring policy continuity.
  6. Technology and Innovation
    Namibia’s adoption of advanced 2D and 3D seismic methods proved pivotal. Pakistan should invest in modern exploration technologies to improve success rates.

Conclusion: A Path Forward for Pakistan

 Namibia’s offshore journey illustrates the power of resilience, innovation, and collaboration in unlocking hydrocarbon potential. By drawing inspiration from Namibia’s approach, Pakistan can chart a path toward energy security.

Key steps include fostering an investor-friendly ecosystem, prioritizing data acquisition, and engaging with international experts. With sustained efforts and strategic planning, Pakistan’s offshore potential can transform into a vital resource for the nation’s energy needs.

Pakistan's Oil & Gas Investment and Regulations

Pakistan’s Oil & Gas Investment and Regulations

The oil and gas industry in Pakistan offers a promising environment for energy companies. Pakistan has set up strategic areas, rules, and benefits for companies that explore and produce oil and gas (E&P). These policies are designed to make things easier and to bring in more foreign money. Let’s look at the different areas, how companies get permission to work there, and the good deals available in Pakistan’s oil and gas industry.

Zoning for Onshore and Offshore Oil and Gas Exploration

Pakistan has divided its onshore and offshore areas into different categories based on the geological risks and the amount of investment needed:

  1. Onshore Zones:
    • ZONE-I and ZONE-I(F): High-risk, high-cost areas with significant geological challenges.
    • ZONE-II: Moderate risk with high to medium cost requirements.
    • ZONE-III: Low risk and low cost, making it more accessible for E&P activities.
  2. Offshore Zones:
    • Shallow (up to 200m): Easier to access with lower risks.
    • Deep (200-1000 m): Moderate accessibility and higher technical challenges.
    • Ultra Deep (Beyond 1000m): High-risk, high-investment areas with potentially large rewards.

This organized zoning helps companies assess the balance between risk and reward in each area, guiding their strategies according to geological and financial considerations.

Concession Award Process for E&P Rights

Pakistan’s upstream sector provides three procedures for granting E&P rights:

  1. Competitive Bidding:

Petroleum Exploration Licences are given for both land and sea areas. Companies try to win these by using Work Units, a new idea that lets them change their plans to get the best results.

  1. Government-to-Government Agreements:

Companies that work closely with the government can get the right to explore new areas without having to compete with others. This helps build strong relationships between the government and these companies, and it also benefits both sides.

  1. Reconnaissance Permits:

For businesses that conduct research and surveys, non-exclusive licenses can be acquired through direct talks, allowing them to gather data from multiple sources.

Invitation to Bid: Transparency in the Bidding Process

To guarantee a fair and clear process, the Directorate General of Petroleum Concessions (DGPC) publishes public invitations for companies to submit their bids. These bids are open for at least 60 days, giving enough time for interested companies to join. The process favors companies that offer the most Work Units. If several companies offer the same amount, they can submit new bids to make the competition more equal.

Agreement Execution for E&P Activities

The DGPC helps make it easy and fast to sign Petroleum Concession Agreements (PCA) or Production Sharing Agreements (PSA) using standard templates. This organized process reduces paperwork and delays, so companies can start their exploration work as soon as possible.

Gas Market Access and Infrastructure

E&P companies have permission to build and run pipelines for both local use and exporting. The gas market works with an open-access system, where companies with solid plans get priority. The building of pipelines follows the government’s energy plan, and the prices are controlled by the right groups, making sure companies make money while also looking out for the public’s needs.

Investment Incentives: A Favorable Onshore Package

Pakistan’s onshore oil and gas exploration package has several benefits to encourage foreign investment:

Royalties: A standard 12.5% royalty on the value of petroleum produced is applied. This gives the government a fair share while keeping costs reasonable for companies.

Corporate Income Tax: The tax on profits is capped at 40%, and royalty payments can be deducted as expenses. This makes Pakistan a good choice for large oil and gas companies.

Local Partnership Requirement: Foreign companies must partner with local firms, like GHPL. This helps local businesses grow and allows international expertise to enter the market.

Production Bonuses and Work Units: Companies get bonuses based on how much they produce, and Work Units allow for flexible work requirements. This helps companies adjust their plans based on the actual conditions they find.

Import Duties and Taxes

The rules for taxes provide significant benefits for companies doing oil and gas work:

  • Imported equipment that isn’t made locally has a 5% import tax, while locally made items have a 10% tax, and wellhead equipment has a 15% tax.
  • Companies that provide technical services to oil and gas firms don’t have to pay import duties, sales tax, or license fees, which lowers their costs.

Social Welfare and Training Contributions

Acknowledging the significance of community well-being, the rules require oil and gas companies to make social and training payments:

  • Training Payments: These companies pay yearly, with $25,000 during the search for oil and gas and $50,000 during the building phase.
  • Social Welfare Payments: Depending on how much oil and gas they produce, companies fund local welfare projects, helping communities in areas where they search for and produce oil and gas.

Key Takeaways

Pakistan’s oil and gas industry is set up to bring in investments while considering economic, environmental, and social needs. By using a system of zones and competitive offers, along with government help and benefits, the country makes it easier and more profitable for companies to find and produce oil and gas.

For more details, refer to the Petroleum (Exploration and Production) Policy 2012.

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