Additional recovery: PPL seeks revision in prices of gas from Kandhkot field

ISLAMABAD: Pakistan Petroleum Limited (PPL) has sought revision in gas prices for additional recovery of 100 BCF gas from Kandhkot Gas Field, well informed sources told Business Recorder.

In a letter to Director General (Gas) Ministry of Energy (Petroleum Division) Managing Director PPL Tauseef Ahmad Khan stated that at present Kandhkot Gas Field production potential has declined to 165 MMCFD.

With continuous decline in reservoir pressures, PPL requires investment in development activities aimed at an additional recovery of 100 BCF to improve overall economics of the Kandhkot field through modification in existing front-end compression and drilling of development wells.

According to the Managing Director, the project execution activities differ due to negative Net Present Value (NPV) at current wellhead price. However, development activities related to installation of front-end compression and drilling of development wells become imminent to execute in FY 2024-25 for optimal gas recovery from KGF.

Furthermore, KGF well-head gas price is bare minimum when compared to other fields in the region, supplying gas to power plants and utility companies. Therefore, MD PPL again requested Director General of Gas to consider its case for revision of sales gas price, in line with 100% of the 2012 policy price and requested a time for a meeting to present its stance in detail before Director General (Gas) and Directorate General (Petroleum Concessions).

In December last year, PPL wrote to the Director General Gas that at present the well-head gas price from KGF is bare minimum in the region when compared with other fields providing gas to power plants and utility companies. Therefore, the request for the sales gas price revision according to 100 % of 2012 policy price was submitted in context of additional investment required to maintain optimum production profile of Kandhkot Gas Field and maximize gas recovery with an additional recovery of100 BCF to improve overall economics of the field.

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