The supply of oil and gas in the country increased by 4 percent in ten months of the current fiscal year, as per latest data released by Pakistan Petroleum Information Service (PPIS).
The domestic oil and gas production depicted an increase of 4 percent to 681,000 boepd (thousand barrels of oil equivalent per day) compared to Jul-Apr FY05 production of 655,000 boepd.
Rise in gas production was the main reason behind this growth as oil production during this period suffered a nominal decline. This was because the energy mix is largely skewed towards gas.
According to a report of JS Capital Markets Ltd, domestic gas production in Jul-Apr period increased by 4.6 percent, to 3.8 bcfpd (billion cubic feet per day) versus 3.7 bcfpd produced during similar period of last year.
The increase in gas production mainly derived from optimum production from existing fields.
On the other hand, indigenous oil production remained flat, showing a marginal decline of 1.3 percent to 65.5,000 bpd as against 66.4,000 bpd previously.
Combined oil and gas production of the E&P giant, OGDCL, remained flat at 165,000 boepd in Jul-Apr FY06, compared to 163,000 boepd recorded in similar period of last year. Oil production of the company stood at 38,300 bpd in this period--an increase of 2 percent from previous level of 37,500 bpd. Gas production during this period stood at 951 mmcfd versus 941 mmcfd previously.
Based on this, OGDCL market share in domestic oil and gas production came to 58 percent and 25 percent respectively. Recently, OGDCL through notice to KSE communicated that initial testing at Chanda-2, a development well, showed an additional production capacity of 1,564 bpd of oil and 2 mmcfd of gas.
The additional production from Chnda-2 is expected to start soon. OGDCL holds 72 percent stake in Chanda concession.
Currently, Chanda field is producing 2,500 bpd oil and 7.3 mmcfd gas.
Once again double-digit increase in POL's oil and gas production was observed with combined oil and gas production depicting an increase of 49 percent from 11,900 boepd to 17,700 boepd in Jul-Apr FY06. Oil production surged by 32 percent to 7,154 bpd compared to 5,410 bpd corresponding 10 months of last year. Gas production during the period increased to 47 mmcfd from 29 mmcfd thereby showing a growth of 62 percent. Increase in oil and gas production was due to increased production from Pindori, Pariwali and start of production from Tal Block.
PPL combined oil and gas production during Jul-Apr FY06 saw an increase of 6.5 percent to 175,000 boped from 164,000 boepd previously. Gas, being the mainstay for PPL, witnessed 6.4 percent increase with production recorded at 1,010 mmcfd as against 949 mmcfd during the same period of last year.
This mainly resulted from start of production from Manzalai-Tal and optimum production from other fields.
Oil production showed a growth of 11 percent to 1,823 bpd in Jul-Apr FY06 compared to 1,645 bpd previously.