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Economic Times
16 hours ago
- Business
- Economic Times
Trump's deal with Pakistan raises a big question: Does India's arch-rival really have large oil reserves? Here's what we know
TIL Creatives Trump said the United States and Pakistan are 'in the process of choosing the Oil Company that will lead this Partnership' aimed at developing Pakistan's oil resources. Just hours after slapping 25% tariffs on India, U.S. President Donald Trump announced a new energy deal with Pakistan on Wednesday, framing it as a joint project to tap what he called the country's 'massive oil reserves.' Trump's remarks, shared on Truth Social, included a surprising hint: that Pakistan might one day sell oil to India. The bold claim has reignited debate over Pakistan's real oil potential — a subject that remains more promise than proven a post on his social media platform, Trump said the United States and Pakistan are 'in the process of choosing the Oil Company that will lead this Partnership' aimed at developing Pakistan's oil resources. Framing the deal as a future-looking energy alliance, Trump wrote, 'Who knows, maybe they'll be selling Oil to India some day!' The timing — coming just after economic penalties on India — adds geopolitical weight to the deal. Despite Trump's grand language, Pakistan is not currently sitting on confirmed 'massive' oil reserves. According to the U.S. Energy Information Administration (EIA) and Worldometer data, Pakistan had 353.5 million barrels of proven oil reserves as of 2016, placing it 52nd globally and accounting for just 0.021% of the world's total reserves. At current consumption levels (about 556,000 barrels per day), these reserves would cover less than two years of domestic demand without imports or new oil production in Pakistan hovers around 88,000 barrels, far below national consumption, forcing the country to import about 85% of its comment may be based on recent geological surveys in Pakistan's Offshore Indus Basin, where seismic data has pointed to potential hydrocarbon formations. A three-year survey, conducted with support from a 'friendly country,' identified large underwater structures with oil and gas signatures. Some speculative estimates suggest these could rank among the world's top four reserves, after Venezuela, Saudi Arabia, and Iran. However, these claims are not yet substantiated. No commercial drilling has confirmed the presence, size, or quality of these resources. Experts warn these are not reserves in the technical sense, as they lack development plans, proven recoverability, or commercial Indus Basin's geological structure, shaped by tectonic activity and rich in mudstone formations, does make it a promising zone for future oil and gas discovery. Seismic interpretation suggests thick source rocks and possible traps, but no successful offshore extraction has occurred in Pakistan so far. Past offshore attempts, such as the Kekra-1 well, failed to yield the energy ministry and the state-run Oil and Gas Development Company Limited (OGDCL) are hopeful that with foreign investment and advanced exploration, this picture could early 2024, Pakistan's Ministry of Energy made headlines by announcing the preliminary results of a multi-year offshore seismic survey in the Offshore Indus Basin, claiming the discovery of substantial hydrocarbon potential. Former Oil and Gas Regulatory Authority (OGRA) member Muhammad Arif and technical experts from state-run companies like OGDCL clarified that these formations cannot yet be classified as "reserves." In the petroleum industry, a resource is only considered a 'reserve' when it is discovered, commercially viable, and supported by a full development plan. In this case, no exploratory drilling has been carried out, and no oil or gas has been commercially extracted from these offshore 2024 claims are based on 2D and 3D seismic interpretations that point to promising structural traps and thick source rocks in tectonically active zones along the Murray Ridge, where the Indian and Eurasian plates meet. The geological setup includes potential source rocks from the Cretaceous to Miocene age, raising hopes among geologists about future these potential reserves isn't cheap. Experts estimate it could take $5 billion and 4–5 years just to confirm and begin development of the offshore sites. Infrastructure — pipelines, refineries, ports — would require even more capital. Pakistan's ongoing economic crisis, including a $126 billion external debt and a high energy import bill of $17.5 billion (2023), complicates capacity is also limited. Pakistan's existing refineries handle around 450,000 barrels per day, already strained by domestic needs. Toot Oilfield (Punjab): Discovered in the 1960s with ~60 million barrels in place, though only 12–15% is recoverable. Lower Sindh Fields: Discovered in the 1980s and now contribute the bulk of Pakistan's onshore oil production. Sui Gas Field (Balochistan): Pakistan's largest gas field, discovered in 1952, but not a source of crude oil. These legacy fields contribute to current production but are nowhere near enough to meet suggestion that Pakistan might supply oil to India someday is highly speculative. Beyond the uncertain state of Pakistan's reserves, political and logistical barriers loom large. India already secures oil from the Middle East and Russia at scale. Any energy corridor from Pakistan would require improved diplomatic ties, stable cross-border infrastructure, and verified commercial US entry into Pakistan's oil exploration space could also unsettle China, which has already made significant strategic and financial investments in the country, particularly through the China-Pakistan Economic Corridor (CPEC). Many of these projects, including energy infrastructure and port development, are concentrated in Balochistan, a province that is not only home to untapped oil and gas potential but also to a long-running insurgency and local protests against federal resource control. If the US-Pakistan oil partnership moves forward in regions like Balochistan, it could trigger geopolitical friction with Beijing, which views Pakistan as a key Belt and Road ally. Furthermore, local armed groups in Balochistan have repeatedly targeted both Chinese workers and Pakistani state infrastructure, raising questions about security, sovereignty, and the viability of any large-scale foreign-led energy project in the Trump's announcement of a joint oil venture with Pakistan has put the spotlight on a country rarely discussed in global energy circles. But there's a long road between promise and production. Until exploratory drilling confirms the size and quality of these formations, Pakistan's oil future remains speculative. For now, the Trump-Pakistan deal is more about strategic positioning than proven petroleum power. FAQs Q: How much proven oil does Pakistan have? A: As of 2016, Pakistan has 353.5 million barrels of proven oil reserves, placing it 52nd in the world. Q: How much oil does Pakistan produce daily? A: Pakistan produces approximately 88,000 barrels per day, far below its daily consumption of over 550,000 barrels. Q: Is there any recent discovery of large reserves? A: Not yet. Seismic surveys in the Offshore Indus Basin suggest potential reserves, but no commercially viable discoveries have been confirmed. Q: What is needed to develop offshore reserves? A: Around $5 billion and 4–5 years of exploration, drilling, and infrastructure investment are required just to begin commercial development. Q: Could Pakistan export oil to India? A: That's highly speculative and would require confirmed reserves, production scale-up, and improved diplomatic and trade relations between the two countries.
Indian Express
18 hours ago
- Business
- Indian Express
‘Maybe they'll sell to India someday': Trump announces ‘massive' oil deal with Pakistan
US President Donald Trump on Wednesday announced that his administration has struck a deal with Pakistan wherein the two countries are poised to work together to develop Islamabad's oil reserves. In a post on Truth Social, Trump said 'We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves.' However, Trump's post didn't provide any further detail on the deal between US and Pakistan revolving around the oil reserves. Adding to the post, Trump said 'We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they'll be selling oil to India some day.' The announcement by President Trump comes days after Secretary of State Marco Rubio held meeting with Pakistani Foreign Minister Ishaq Dar in the United States. Following the meeting, Dar had said a trade deal with the US was 'very close'.
Saba Yemen
30-06-2025
- Business
- Saba Yemen
Dhamar: Oil, Gas companies host cultural event commemorating Prophet's migration
Dhamar - Saba: The branches of the Oil and Gas Companies in Dhamar governorate on Monday organized a cultural event commemorating the Prophet's noble migration (Hijra). During the event, Dhamar undersecretary Mohammed Abdulrazzaq emphasized the anniversary's significance as a pivotal moment in establishing the Islamic state. Abdulrazzaq highlighted the virtues of the Prophet's migration and the role of Yemenis in this foundational event for Islamic history. He also reviewed lessons from the Hijra that the nation's people should recall and apply in their practical lives, particularly concerning the struggle against enemies. Director of the Oil Company branch Engineer Abdullah al-Ashbat discussed the implications of commemorating the Prophet's migration. He stressed the importance of drawing lessons from it to advance the nation and confront aggressive schemes targeting it. Al-Ashbat noted the significance of the Great Prophet's migration, which marked a decisive turning point in human history and the beginning of the Islamic state, founded on noble values and principles. Cultural speaker Nasr al-Dhulaimi present at the event alongside Engineer Nabil al-Mutawakil, Director of the Gas Company branch, and his deputy Nasr al-Din al-Harouji, spoke about the motives and accompanying miracles of the blessed Prophet's migration. He affirmed the importance of commemorating this great anniversary and the Yemeni people's deep connection to it, highlighting the Prophet's sacrifices, his patience in delivering the message, the challenges he faced from Quraysh infidels, and the crucial support from Aws and Khazraj tribes. Whatsapp Telegram Email Print
Saba Yemen
22-05-2025
- Politics
- Saba Yemen
Funeral of martyr Mukhtar Mashhur held in Bayt al-Faqih District, Hodeida
Hodeida - Saba: The funeral of Martyr Mukhtar Khalid Mashhur, an employee of the oil company, was held on Thursday in the Bayt al-Faqih District of Hodeida province. The martyr fell victim to the Zionist aggression's crime targeting the oil facility in Ras Isa Port. The funeral procession, led by Deputy Director-General of the Oil Company's branch in the province, Abdul Sattar Abdullah Za'afoor, along with several company officials, tribal leaders, and social figures, condemned the brutal crime committed by the Israeli enemy against civilians and workers at Ras Isa Port. The mourners described the targeting of civilian facilities and national personnel as a war crime that will not be subject to a statute of limitations, stressing that such crimes will only strengthen the Yemeni people's resolve and steadfastness in confronting the enemies of Yemen and Palestine. The martyr's body was laid to rest in the Martyrs' Garden in Bayt al-Faqih District after funeral prayers were held at Al-Mas'udi Mosque in Al-Mas'udi area – 'Uzlat Al-Taraf Al-Shami, with broad participation from local residents, colleagues, and family members of the martyr. Whatsapp Telegram Email
