Tuesday July 16, 2024

MOL Pakistan’s plants, field installations ‘safe’ despite armed attack

MOL Pakistan 'temporarily' shuts down oil, gas production from wells to avert any damage from the firing

By Business Desk
May 24, 2023
An undated image of a site of MOL Pakistan Oil and Gas Company — MOL Pakistans website
An undated image of a site of MOL Pakistan Oil and Gas Company — MOL Pakistan's website

MOL Pakistan Oil and Gas Company on Wednesday, in a stock filing, said that the production from the wells were temporarily shut down by remote access after an armed attack was reported on the sites in Hangu district; however, the installations are "safe".

Six personnel embraced martyrdom after putting up a brave fight when an armed attack at Manzalai-08 and Manzalai-10 well sites in Hangu District — facilities run by MOL Pakistan Oil and Gas Company, which is a unit of Hungary's MOL — was reported on Tuesday.

The company, in a notice sent to the Pakistan Stock Exchange (PSX), said: “Both the wells had to be shut down from Central Control Room to avert any damage from the firing causing production curtailment of approximately four (04) MMscfd of gas and 24 barrels per day of oil."

MOL Pakistan further mentioned that all the plants and fields installation remained safe and production of hydrocarbons from the rest of the well is normal.

Immediately after the incident took place the company had confirmed that no MOL employee was present at the scene of the attack.

Fahad Rauf, head of research at Ismail Iqbal Securities, said oil and gas output in Pakistan had been falling in part because there had been no major discoveries, amid poor security, rising debt problems and a lack of local technical expertise.

He said oil output had dropped 18% in 2022 compared to 2019, while gas production was down 14% in the same period.

"The country has exploited much of the existing producing areas but is not able to explore belts near the Afghan border due to the security situation," he said.

He said foreign investment and exploration activity had picked up in the Waziristan belt but the situation had worsened since the US withdrawal from Afghanistan.

With foreign firms exiting, he said that "Pakistan lacks the expertise and funds to tap unconventional reserves despite having one of the highest shale reserves in the world."