Following the appraisal, total production from the Adhi well has risen to 6,111 barrels of oil per day, according to Pakistan Petroleum Information Services (PPIS) data. CREATIVE COMMONS
Oil production in Pakistan rose to 82,624 barrels per day in the week ended November 26 as Pakistan Petroleum Limited (PPL) completed its assessment of Adhi-19 well, which was declared a gas and condensate producer, research house Topline Securities said in a report released on Wednesday.
Following the appraisal, total production from the Adhi well has risen to 6,111 barrels of oil per day, according to Pakistan Petroleum Information Services (PPIS) data, showing an increase of 591 bpd over the week ended November 12 when the well produced 5,520 bpd.
“We believe the drop in Adhi’s production to 3,223 bpd in the previous week was due to tie-in of this new appraisal well,” said Vahaj Ahmed, analyst at Topline Securities.
PPL holds 39% working interest in Adhi field, where 19 wells have been drilled to date. OGDC holds 50% working interest and Pakistan Oilfields Limited has 11% interest in the field, which is located 70 km south of Islamabad in the Pothwar region.
Meanwhile, gas production in the country rose to 4,083 million cubic feet per day (mmcfd), primarily due to increase in output from some fields, the research house said.
Production from Mari field rose 37 mmcfd, Latif field recorded an increase of 26 mmcfd and Kandhkot field saw a rise of 16 mmcfd. PPL has 33% and 100% working interests in Latif and Kandhkot fields, respectively.
About two months ago, Prime Minister Nawaz Sharif inaugurated a 50km pipeline connecting Latif to Sawan gas field in an effort to add 100 mmcfd to the system.
“Production from Latif field has increased to 150 mmcfd compared to 75 mmcfd at the time of the announcement, up 100%,” the research house said.
Last year, the government allowed the gas price set in the Petroleum Policy for 2012 for volumes above the initial field development plan for Latif gas field ie 60 mmcfd. It will now fetch wellhead gas price of $5.9 per million British thermal units if Arab Light crude price hovers in the range of $100-110 per barrel.
“This will have an annualised impact of Rs1.3 per share on PPL,” the report said.
Published in The Express Tribune, December 5th, 2013.
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