ISSN 2330-717X

Pakistan: Oil And Gas Production On The Decline

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According to a report by Pakistan’s leading brokerage house, Topline Securities, during FY22, oil production in the country declined by 3%YoY to 26.8 million barrels or 73,400 barrels per day (bpd). Oil production in the country during 4QFY22 was down by 6%YoY as against 17%YoY increase in 4QFY21. 

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This was largely due to: 1) decline in production from Nashpa, Adhi, and Makori East oil fields, and 2) no addition of any sizable oil field. On a QoQ basis, the decline in oil production was due to annual turnaround at Meyal, Jhandial and Pariwali.

During FY22, Pakistan gas production has come down by 2% YoY to 3.38k mmcfd which is largely in line with last 5-year average production decline.

Gas production in 4QFY22 contracted by 2% YoY due to: 1) their association with lower oil production, and 2) lower offtakes due to annual turnaround and maintenance. 

During 4QFY22, gas production was almost flat or up by paltry 1%QoQ despite lower offtakes from MARI due to annual turnaround of Foundation Power Company Daharki Limited (FPCDL) and Dakhni and Maramzai fields during the quarter. 

As new block auctions were held last year, exploration activity in the new awarded blocks is likely to increase. Production flows in FY23 could also be higher due to the recent discoveries in FY22.

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In FY22, Geological and Geophysical (G&G) activities remained on a higher side where 3D seismic acquisition rose to 1,913 Sq. Kms. However, 2D seismic activities decline to 2,507 Sq. Kms.

During 4QFY22, Geological and Geophysical activities showed an increase, with 3D seismic acquisition increasing to 1,132 Sq. Kms, while 2D declined to 577 Sq. Kms. Moving forward, there are 7 seismic surveys of 2D and 3D which are going to be conducted during 1QFY23.

In FY22, meterage drilling increased by 43%YoY as the numbers of well spudded were reported at 58 as compared to 50 in the same period last year. Drilling activities (meterage) rose by 20%YoY, but fell by 19%QoQ to 44,500 meters during 4QFY22.

Overall, 8 wells were abandoned in FY22 as against 6 in the same period last year. During 4QFY22, the exploration and production companies encountered 3 abandoned wells which were Exploratory (Mian Miro Deep -1, Surghar X-1 and Bewato-1.

For 1QFY23 3 exploratory and 4 development wells have been planned for.

Shabbir H. Kazmi

Shabbir H. Kazmi is an economic analyst from Pakistan. He has been writing for local and foreign publications for about quarter of a century. He maintains the blog ‘Geo Politics in South Asia and MENA’. He can be contacted at [email protected]

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