Oil production jumps 24pc in FY21

KARACHI: Pakistan’s oil production swelled by 24 per cent in FY21 while the gas output shrank by 2pc during the year.

Despite drop in production from Makhori Deep by 37pc and 14pc in Mardankhel, the total oil production during FY21 soared to 75,575 barrels per day (bpd) from 60,993bpd in FY20 while gas production slightly fell to 3,511mmcfd from 3,589mmcfd in FY20.

According to Shankar Talreja of Topline Securities, the country’s oil production in 4QFY21 was down by 3pc QoQ to 74,700bpd as decline was visible in nearly all major fields like Nashpa, Adhi, Makori East, Maramzai, Chanda, Mardankhel and Makori Deep (to the tune of 2-17pc).

Production from Tal Block fields like Makori East, Mardankhel, Makori Deep etc also dropped due to Annual Turn-Around (ATA) in mid April. Production from Kunnar Pasakhi Deep KPD fields also fell by 13pc due to annual turnaround at the end of June.

He said during FY21, oil production increased by 24pc as last year’s production was lower due to lockdowns, which restricted overall throughput of oil and gas fields amidst lower demand.

Two new oil fields — Benari and Gagani — with cumulative production flows of 70-80bpd were injected into the system during the quarter.

Gas production

Pakistan domestic gas production remained flattish QoQ to 3,509mmcfd during the 4QFY21, despite gas shortages making headlines during the last couple of weeks of June.

Mr Talreja said increase in gas flows was witnessed from Uch field (over 10pc QoQ) and Mari field (over 3pc QoQ). The flows from the latter increased despite lower offtake to FFC (because of turnaround) as Mari diverted flows to the national grid (Guddu).

Production from Kandhkot gas field dropped by 4pc QoQ 3QFY21 to 9,791mmcfd due to lower demand by generation companies, while production from the same field came down by 17pc in FY21 to 42,530mmcfd from 50,994mmcfdd in FY20.

During FY21 gas production declined by 2pc due to 13pc and 17pc decline in flows from Qadirpur and Kandhkot, respectively.

During the outgoing quarter, two new wells were injected in production line namely Benari and Gagani, with cumulative flows of 7-8 mmcfd.