Exploration activity continues to remain sluggish on account of circular debt and security challenges in rich hydrocarbon basins of Khyber-Pakhtunkhwa and Balochistan in the current financial year.
Only three exploratory wells have been drilled against four wells in the same period last year while four development wells have been drilled against six last year in fiscal 2012 so far, according to a Topline Securities research note.
Pakistan Oilfields (POL) has initiated its first exploratory well of the year while Oil and Gas Development (OGDC) and Pakistan Petroleum (PPL) have yet to drill for new hydrocarbon reserves this year.
The sector drilled seven wells achieving 9% of the full year target of 76 wells, according to data released by Pakistan Petroleum Information Services. In the same period last year, the sector accomplished 13% target by drilling 10 wells against target of 80 wells.
Among last year wells, OGDC’s Chak Naurang South is in testing phase and a discovery is expected this year, says the note. Moreover, progress on the highly anticipated Zin Block continues on a slow pace as the operator OGDC encountered with difficult formation. News flow is expected of a development from the field by December, adds the note.
Published in The Express Tribune, September 10th, 2011.
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