Pakistan Petroleum Limited finds fresh oil and gas deposits

Makes discoveries in wells located in Sindh, Balochistan

KARACHI: Pakistan Petroleum Limited (PPL) has announced the discovery of fresh oil and gas deposits in two wells located in Sindh and Balochistan at a time when the country is passing through a huge gas crisis.

Tests conducted by the state-owned oil and gas exploration firm showed flow of natural gas at 28.6 million standard cubic feet per day (mmscfd) and flow of crude oil at 152 barrels per day from the well located in Sindh and another 10.7 mmcfd of gas from the well in Balochistan.

PPL’s share price dropped 4.36%, or Rs6.13, to Rs134.59 with trading in 4.70 million shares at the Pakistan Stock Exchange (PSX) on Monday.

An analyst, however, termed the discoveries insignificant compared to PPL’s own size.

“Discoveries of gas also stand moderate compared to the total supply from domestic fields at around 3.5-4 billion cubic feet per day (bcfd) nationwide,” JS Global analyst Arsalan Ahmed told The Express Tribune.

However, the total gas supply stands at almost half the current demand for over 7 bcf.

The large gap between demand and supply has forced gas distribution companies to suspend supply to industries in Punjab and compressed natural gas (CNG) stations in Sindh and Balochistan.

In a notification sent to the PSX, PPL said it held 33.30% working interest in the joint venture of Latif exploration licence (exploratory well Bitro-1) in Khairpur District of Sindh.

Other two partners Eni Pakistan and United Energy Pakistan hold 33.30% and 33.40% working interest respectively in the Latif block.

In another notification, PPL said it held 100% working interest in the Margand block (2,866-4), Balochistan where it discovered gas in Margand X-1 well.

“The discovery(ies) will add to the company’s hydrocarbon reserves and contribute to a reduction in the gap between supply and demand of oil and gas in the country through the exploration of domestic resources,” PPL said.

Published in The Express Tribune, December 24^th, 2019.

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