# Govt Declares Pab Reservoir in Rehman-8 ST-3 Well as Tight Gas
**ISLAMABAD:** The federal government has approved the declaration of the **Pab reservoir in the Rehman-8 ST-3 well as a Tight Gas Reservoir**, in accordance with Clause 4 of the Tight Gas (Exploration & Production) Policy, 2011.
The decision was taken by the **Economic Coordination Committee (ECC) of the Cabinet** on the recommendation of the Petroleum Division, following a detailed technical and regulatory review of the reservoir.
The Petroleum Division told the ECC that increasing indigenous gas production through the development of unconventional resources was critical to Pakistan’s energy security and could help reduce the country’s dependence on imported fuels.
To encourage the development of low-permeability gas reservoirs that are not commercially viable through conventional production methods, the government introduced the **Tight Gas (E&P) Policy, 2011**, which provides incentives for their exploration and development.
The Petroleum Division said **M/s Polish Oil and Gas Company (POGC) Pakistan** had sought approval for the re-evaluation and re-certification of the tight gas reserves and reservoir associated with the Rehman-8 ST-3 well, located in the Rehman Development and Production Lease, under Clause 5(h) of the policy.
The Rehman-8 ST-3 well was spudded on **August 5, 2021**, and reached a total measured depth of **2,845 metres on May 2, 2023**, after overcoming several operational challenges.
The well was subsequently perforated in the **Upper Pab Sand interval**. Production testing before and after hydraulic fracturing showed a significant improvement in gas flow rates following the application of unconventional completion techniques.
Based on the initial production performance and reservoir characteristics, POGC requested that the well be declared a Tight Gas Well. Following a competitive bidding process, **M/s RPS** was engaged as an independent third-party consultant to certify the reservoir.
However, the RPS report was not accepted by the authorities and was rejected through a letter dated **October 23, 2024**. POGC was subsequently informed that the Pab reservoir and its associated reserves would be treated as conventional.
Following a fresh request from POGC, the reservoir was re-evaluated by another internationally recognised third-party consultant, **M/s IPR International**, in accordance with Clause 5(h) of the Tight Gas Policy.
The consultant concluded that the Pab gas-bearing reservoir in Rehman-8 ST-3 **qualifies as a Tight Gas Reservoir** under the 2011 policy. It also determined that the reservoir could not be produced economically using conventional production and completion techniques, but could be commercially developed through unconventional methods.
These methods include **high-performance perforation combined with semi-massive hydraulic fracturing**.
According to the IPR International certification, the reservoir has an estimated permeability of approximately **0.91 millidarcy**, below the **1.0 millidarcy threshold** prescribed under the Tight Gas Policy, thereby meeting the technical criteria for classification as a tight gas reservoir.
The Petroleum Division said the technical team of the **Directorate General of Petroleum Concessions (DGPC)** had raised certain observations regarding the consultant’s findings. The consultant subsequently provided detailed responses and justifications, which were incorporated into its report.
The division further noted that the policy requires tight gas reservoirs to be certified by an independent third-party reservoir consultant. In this case, two internationally recognised consultants engaged through the DGPC had assessed the reservoir and confirmed its tight-gas characteristics.
Under Clause 4 of the Tight Gas (E&P) Policy, 2011, a company is required to demonstrate to the satisfaction of the federal and relevant provincial governments that a reservoir cannot produce gas at commercial rates through conventional methods and requires unconventional techniques for economic production. The Petroleum Division maintained that these requirements had been fulfilled in the case of Rehman-8 ST-3.
The matter had previously been placed before the ECC on **February 18, 2026**. Following observations from the Finance Minister’s Office and subsequent requests from the Cabinet Division for clarification, the Petroleum Division submitted its detailed response on **June 18, 2026**.
The Cabinet Division subsequently directed the Petroleum Division on **July 6, 2026**, to attach its response to the Finance Minister’s observations and submit a fresh signed summary to the ECC.
The Petroleum Division also pointed out that, in light of the Supreme Court’s **Mustafa Impex judgment**, the term “Government” is interpreted to mean the Federal Cabinet comprising the Prime Minister and federal ministries. Consequently, Cabinet-level approval was sought for the declaration of the Rehman-8 ST-3 well as a Tight Gas Well.
After detailed consideration and a brief discussion, the **ECC approved the Petroleum Division’s proposal to declare the Pab reservoir in the Rehman-8 ST-3 well a Tight Gas Reservoir** under Clause 4 of the Tight Gas (E&P) Policy, 2011.
Story by Mushtaq Ghumman
