KARACHI: Pakistan’s hydrocarbon reserves depleted drastically by the end of June 2023, increasing the need for imports to fulfil domestic needs, data showed; while analysts warned that known reserves would run out in 15 years.
The latest data from Pakistan Petroleum Information Services (PPIS) indicated that the country’s oil reserves stood at 193 million bbl in June 2023 compared to 233 million bbl in June 2022, showing a decline of 17 percent YoY because of declining reserves at major oil fields.
Data showed that the year-on-year decline in reserves was 99.6 percent at Jhandial, 27 percent at Pasakhi/Pasakhi North, 15 percent at Chanda, 13 percent each at Adhi and Nashpa, 6 percent at Shahdadpur, and 3 percent at Makori East. These major oil fields contributed the most to the overall decline in Pakistan’s reserves. Meanwhile, the oil reserves of fields such as Mehar, Umar, Halini, and Pindori witnessed a jump of 21 percent, 3x, 3x, and 4x YoY, respectively.
By the end of June 2023, the total gas reserves arrived at 18,339 bcf compared to 19,513 bcf in June 2022, showing a drop of 6 percent YoY. On a field wise basis, gas reserves of Kunnar West Deep, Uch, Adhi, Qadirpur, Shahdadpur, Nashpa, Sui, and Mari depleted by 5 percent, 5 percent, 6 percent, 7 percent, 8 percent, 9 percent, 9 percent, 10 percent and 12 percent YoY, respectively.
Oil and gas reserves from new fields such as Takhat, Mari Ghazij, Bolan East, Bettani (Wali), Kot Nawab, and Shahpur Chakar North were added to the country’s total reserves by June 2023, cumulatively contributing 66 million barrels of oil equivalent (BOE) to the total reserves. A research report of Arif Habib Securities stated that oil reserves of Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), and Mari Petroleum declined by 10 percent, 59 percent, and 77 percent YoY respectively. Whereas, Oil and Gas Development Company (OGDC) oil reserves witnessed an uptick of 1 percent YoY.
In terms of gas reserves, OGDC, PPL, MARI, and POL’s reserves reduced by 4 percent, 4 percent, 11 percent and 55 percent YoY, respectively.
The report estimated that remaining hydrocarbon reserve life of OGDC, MARI, PPL and POL is 20 years, 15 years, 11 years, and 8 years, respectively. Whereas, the country’s total hydrocarbon reserves have a reserve life of 15 years.
POL’s oil reserves nosedived by 59 percent YoY to settle at 13 million bbl in June 2023, which is mostly due to the revision of Jhandial’s oil reserve estimates by the company, resulting in a significant decline in the oil field’s reserves. Similarly, the gas reserves of POL stood at 183 bcf in June 2023, tumbling by 55 percent YoY primarily due to 99 percent YoY decline in Jhandial’s reserves owing to the aforementioned reason.
MARI’s oil reserves reported depletion of 77 percent YoY, arriving at 5.0 million bbl in June 2023 owing to a tapering off reserve of Mari fields such as Shaheen, and Bhitai. Similarly, MARI’s gas reserves were reduced by 11 percent YoY due to a 12 percent YoY fall in the Mari Gas Fields reserve. The reserve of Mari Ghazij was added to the total gas reserves of MARI with a reserve size of 34.9 bcf, while Bolan East’s oil reserve of 0.60 million bbl was included in the total oil reserves.
PPL’s total oil reserves dwindled by 10 percent YoY to reach 27 million bbl owed to a slump in reserves of Nashpa, Adhi, Makori East, Mardan Khel, Dhok Sultan, Shahdadpur, and Kabir. Likewise, gas reserves of PPL plummeted by 9 percent YoY amid a fall in reserves of Sui, Qadirpur, Shahdadpur, Sawan, Rehman, Mardan Khel, and Adhi. Alongside this, the oil and gas reserves of Shahpur Chakar North with the size of 0.48 million bbl and 32 bcf, respectively, were added to the company’s hydrocarbon reserve.
Oil reserves of OGDC witnessed a meagre growth of 1 percent YoY, set at 90 million bbl given the addition of new reserves such as Bettani (which has the third-highest oil reserves in the country), and Kot Nawab with a reserve size of 13.2 million bbl and 0.1 million bbl, respectively. Furthermore, Kunnar and Miano witnessed a growth in oil reserves. However, reserves of Nashpa, Pasakhi/Pasakhi North, Chanda, Makori East, Mela, and Adhi registered a decline, which kept the company’s total oil reserves in check. In terms of gas reserves, OGDC showcased a reduction of 4 percent YoY, clocking in at 6,400 bcf amid the fall in reserves of Qadirpur, Uch, Maramzai, and Nashpa. Additionally, new gas reserves of Bettani and Umair South East with a size of 218.5 bcf and 2.3 bcf , respectively, were included in OGDC’s total gas reserves.
