Oil production slips due to temporary shutdown of Nashpa field

Falls 1% to average 81,570 bpd in May 2017 compared to same month last year

KARACHI: Pakistan’s oil production dropped slightly in May 2017 after supplies from the single largest field remained temporarily suspended for about two weeks recently, according to a brokerage house on Tuesday.

Oil production declined by 1% to an average of 81,570 barrels per day (bpd) in May from 82,677 bpd in the same month of previous year, Topline Securities’ analyst Nabeel Khursheed said in a report to his clients.



“Oil production declined primarily due to temporary shutdown of Nashpa field (which accounts for 26% of Pakistan’s total oil production) for about two weeks. The field has now resumed normal operations,” he said.

In the first 11 months of the outgoing fiscal year 2016-17, however, figures were not disappointing as production crawled up 3% to an average of 88,022 bpd from 85,854 bpd in the same period of previous year.

Big producers like Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) had a more pronounced increase in their production levels during the 11 months thanks to aggressive exploration activities in the developed fields, said Khursheed.

Gas production

On the flip side, gas production edged down 2% year-on-year to 3,828 million cubic feet per day (mmcfd) whereas month-on-month production numbers were up 2%.

“This was supported by improved flow from the Kunnar Pasakhi Deep (KPD) and Mari fields, which were up 18% and 13% respectively on a month-on-month basis,” he said.

In the 11-month period, gas production inched up to 3,901 mmcfd from 3,892 mmcfd in the same period of previous year.

Company-wise production

POL achieved a double-digit growth of 12% year-on-year mainly due to the addition of 900 barrels per day (bpd) of oil from the Mardankhel field during May 2017.

OGDC’s production rose marginally. Although production from KPD field, where OGDC holds 100% stake, was up 58% on a yearly basis to 2,700 bpd, temporary shutdown of Nashpa field, where OGDC has 56% stake, during May 2017 affected its production by 2,000 bpd.

Nashpa also affected PPL’s production as it held 26% stake in the field.

OGDC’s gas production remained flat on a yearly basis in May 2017 mainly on the back of lower flow from the Qadirpur and Loti fields, which offset the impact of additional flow of 50 mmcfd (4.5% of gas production) from KPD.

POL’s gas production grew 17% on a yearly basis primarily due to 11 mmcfd (15% of gas production) of average gas addition from Mardankhel.



On the other hand, improved flow from Adhi, Shahdadpur and Mardankhel, which cumulatively contributed 55 mmcfd or 7% of total gas production, lifted PPL’s gas production by 2% on a yearly basis during May 2017.

“PPL’s production would have been more pronounced, if there had not been 24mmcfd decline from the Kandhkot field,” said the analyst.

“Based on 11-month numbers, we expect Pakistan’s hydrocarbon production to end the year at 761,000 barrels of oil equivalent per day (boed), slightly below our estimate of 767,000 boed.

“We expect oil and gas production at 88,125 bpd and 3,904 mmcfd, respectively in FY17,” he added.

Published in The Express Tribune, June 21^st, 2017.

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