The country’s oil production, which stood at 80k barrels of oil per day (bopd) at the end of FY13, reached all-time high of 98k bopd in June 2014 registering an increase of 22 per cent.
In FY14, the market analysts said, the country produced an average 86k bopd versus 76k bopd in corresponding period last year – up 13 per cent.
On the contrary, they said, though total gas production marginally improved by two per cent to 3,904mmcfd at the end of FY14 versus 3,826mmcfd at start, average production during the year dropped two per cent to 3,984mmcfd versus 4,081mmcfd in FY14.
Hence, the analysts said, cumulative hydrocarbon production in Pakistan dropped by an average one per cent to 796kboed (barrels of oil equivalent per day). Since net realized prices on oil sales are 5.5x higher than that on gas, revenue growth from higher oil production outweighed the revenue-loss from the decline in gas production for E&P companies.
In FY14, Arab Light prices averaged US$108.4/bbl versus US$107.8/bbl in similar period last year, while E&P companies benefited from six per cent average PKR depreciation against US-Dollar despite recent strengthening, the analysts added.
With 26 per cent growth in average oil production and three percent higher gas in FY14, cumulative production of Pakistan Oilfields (POL) stood at average 20kboed versus 18kboed in FY13 – up nine per cent. The company benefited from key additions in Tal block (21 per cent working interest) where average oil production rose 63 per cent to 17kbopd; 20 per cent of total oil produced in Pakistan. Production from three new fields, namely Mamikhel-2, Maramzai-2 and Makori East-3, helped POL to offset the decline in Manzalai.
In FY14, cumulative hydrocarbon production of Oil & Gas Development Company (OGDC) was down by two per cent at 252kboed as compared to 257kboed in corresponding period last year. The oil production posted an increase of two per cent as it stood at 42kbopd versus 41kbopd in FY13. “This was mainly due to higher production from Nashpa, Sinjhoro and Tal block, where cumulative average production rose 54 per cent to 37kbopd,” Topline analyst Vahaj Ahmed.
The company’s average gas production dropped to 1,181mmcfd versus 1,212mmcfd in FY13; down three per cent, said the analyst. The Pakistan Petroleum (PPL) recorded average production of 160kboed versus 169kboed in FY14; down six per cent.
The company’s average oil production registered highest growth of 29 per cent, rising to almost 13kbopd from 10kbopd in FY13. On the contrary, gas production declined nine per cent to average 825mmcfd versus 895mmcfd in similar period last year. Driven by Tal block and Naspha, the company’s oil production grew substantially during the period. “However, this impact was mainly offset by 62mmcfd decline in gas production from Sui,” said the analyst.
