Oil production remains flat in second quarter of FY22

KARACHI: The Oil production in Pakistan during the second quarter of fiscal year 2022 (FY22) witnessed a decline of 1 per cent amidst lower production output, a research report by Topline Securities showed.

The reduction in the production came largely due to the decline in production from Nashpa, Adhi, and Makori East oil fields coupled with no addition of any sizable production oil field.

Likewise, the gas production during the second quarter of FY22 witnessed a decline of 2 per cent on a quarter-on-quarter basis, driven by the lower production from Uch field as Uch Power Limited (UPL) turbines remained offloaded, owing to less demand from Water and Power Development Authority (Wapda).

Mari gas production was affected on the back of minimum gas offtakes from the Fauji Fertilizer, due to annual turnaround coupled with plant compressors issue which disrupted supply to Pak Arab Fertilizers.

The Guddu Thermal Power Station (GTPS) gas offtake remained suspended due to maintenance activities, which resulted in lower offtakes from Mari, Kandhkot and Chachar fields.

“During the first half of FY22, oil production is expected to remain flat on a year-on-year basis to 13.9 million barrels or 75,400 barrels per day,” the report estimated.

“Gas production during the same period is likely to contract by 2 per cent year-on-year, due to their association with lower oil production, and lower offtakes due to annual turnaround and maintenance. The gas production is likely to come down by 4 per cent year-on-year to 3,370 mmcfd.”

During the second quarter of FY22, geological and geophysical activities showed a decline, with 3D seismic acquisition falling 65 per cent year-on-year and 53 per cent on a quarter-on-quarter basis to 100 square kilometers, while 2D acquisition also decreased 64 per cent year-on-year and 60 per cent quarter-on-quarter to 316 square kilometers.

A total of 7 seismic surveys of 2D and 3D will be conducted in January 2022.

The drilling activities (meterage) rose by 7 per cent year-on-year and fell by 23 per cent quarter-on-quarter to 36,900 meters.

On first half basis the meterage drilling increased by 35 per cent year-on-year in FY22, as the numbers of well spudded till December 2021 (fiscal year to date) remained 22, compared with 18 in the same period last year.

During the second quarter of FY22, the oil and gas companies encountered two abandoned wells which were exploratory (Qasar X-1 and Mari PKL South-1).

There are 15 exploratory and development wells (5 each month) planned for the third quarter of FY22.