Pakistan gas production increasing – Oil and gas news update

According to Pakistan Petroleum Information Services (PPIS), Pakistan’s gas production has increased to 4,339mmcfd by March from 4,011mmcfd in June 2011. Similarly, oil production has jumped to 72,411bpd in March from 65,659bpd in June 2011.

The Oil and Gas Development Company Limited (OGDCL) is leading the industry volume growth as a renewed focus of management on early development of fields and success on appraisal drillings, which led to a strong 12-13 percent volumetric growth.

A key positive surprise in the fiscal year stems from production recovery on Pakistan Petroleum Limited (PPL) operated Sui field as production jumped by five percent in the second quarter, defying previous trend of four to five percent decline in production
and prospect of 100mmcfd of gas volume addition on Kadanwari in which OGDCL stake is 50 percent, with initial 30-40mmcfd already hooked up.

Fawad Khan, an analyst at KASB Securities, said that the regulatory issues post-introduction of 18th Amendment, poor law and order situation in selected areas and backlog of incomplete wells have restricted the drilling activity.

All exploration activities are concentrated in the onshore area, he said, adding that year to date, the E&P sector has drilled 14 exploration and 24 development wells against the fiscal year targets of 31 exploration and 45 development wells.

Unlike previous years, foreign E&P companies have contributed heavily to the exploration activities with the United Energy, which acquired BP Pakistan assets last year, drilling six exploration wells in the year so far.

A successful drilling in high-profile well at Zin, though results are below expectation, finds in Hilani near Tal Block by Mari Gas and successful development drillings in Sui are noteworthy events.

However, appraisal activity has slowed down. Results of Nashpa III and Makori East II, which were earlier targeted in the third quarter, have now slipped into fourth quarter due to reconfiguration of the target depth.

Similarly, the start of appraisal drilling in Maramzai and Mamikhel, both in Tal Block, earlier scheduled for the third quarter is now likely in the fourth quarter.

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Posted by Ahmed Tariq on Mar 31 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry