Oil production falls three per cent this year

The total oil production fell three per cent while gas production remained almost flat this year compared with the same period last year, according to an analyst.

Local gas production stood at four bcfd (billion cubic feet per day), depicting a growth of around one per cent year-on-year, which was offset by a three per cent fall in oil production, declining to 64kbpd (thousand barrels per day) from 66kbpd last year, according to JS Global Capital.

The production stands at 707kboepd (thousand barrels of oil equivalent per day) for the first 11 months of the current fiscal year, according to data released by the Pakistan Petroleum Information Services.

The current lacklustre production performance of the sector would be short-lived as new production flows from Maramzi and Mamikhel coupled with improved production levels from Qadirpur, Mela and Nashpa will ramp up the production profile of listed exploration and production (E&P) companies in the next fiscal year, said JS Global Capital analyst Umer Ayaz in his research report.

OGDC production down

Oil and Gas Development Company’s (OGDC) combined oil and gas production was down four per cent at 195kboepd in the period under review against 202kboepd last year.

Oil production alone posted a decline of eight per cent as it stood at 38.5kbpd because of lower production from Bobi, Chanda, Kunar, Sono and Buzdar fields.

Similarly, the company’s gas production fell two per cent to 975mmcfd (million cubic feet per day) mainly led by lower production from Qadirpur and Uch fields.

PPL production flat

Total oil and gas production of Pakistan Petroleum Limited (PPL) remained flat at 158kboepd when compared with last year’s production.

The company’s gas production witnessed a dip of 0.5 per cent on yearly basis and stood at around 954mmcfd.

The new production flows from Manzalai, Tajjal and Latif was offset by a natural decline in gas production from Sui field, down six per cent year-on-year.

On the contrary, PPL’s oil production during this period registered a growth of nine per cent, raising the oil production to 4.5kbpd against 4.1kbpd in the corresponding period last year.

POL production up 13%

The combined oil and gas production of Pakistan Oilfields Limited (POL) rose 13 per cent to 11.3kboepd against 10kboepd in the same period last year.

Company’s gas production during the period stood at 45mmcfd, up 17 per cent, while average oil production also increased by around seven per cent to 4.2kbpd.

The growth in production is mainly attributed to recovery in oil production from Pindori and commencement of commercial oil and gas flows from Manzalai in the second quarter of the fiscal year, said Ayaz.

Published in The Express Tribune, June 30^th, 2010.