Pakistan’s oil reserves dip 14 percent y/y amid production decline

KARACHI: Pakistan's oil reserves have seen a significant decline of 14 percent year-on-year, dropping to 193 million barrels in December 2023 from 224 million barrels in the previous year, according to data released by Pakistan Petroleum Information Services.

The decrease is attributed to a natural decline in production at major oil fields, with notable drops in reserves at Adhi, Nashpa, Chanda, Makori East, Pasakhi/Pasakhi North East, Mardankhel, and Jhandial. Conversely, fields like Tolanj West, Pindori, Halini, and Jagir have experienced substantial increases, with jumps of up to 21 times the previous year's figures.

Adhi, Nashpa, Chanda, Makori East, Pasakhi/Pasakhi North East, Mardankhel, and Jhandial oil reserves plunged by 14 percent, 14 percent, 15 percent, 18 percent, 33 percent, 39 percent, and 100 percent year-on-year.

Gas reserves also declined by 5 percent year-on-year, standing at 18,109 billion cubic feet (bcf) compared to 19,042 bcf in December 2022.

The fall in gas reserves was observed across several fields, including Uch, Kunar West Deep, Qadirpur, Shahdadpur, Sui, and Mari, while reserves at Rizq, Kandkhot, Makori East, Pindori, and Tolanj West saw increases.

Uch, Kunar West Deep, Qadirpur, Shahdadpur, Sui and Mari gas reserves plummeted by 5 percent, 5 percent, 7 percent, 8 percent, 10 percent and 23 percent year-on-year, respectively. Whereas, gas reserves of Rizq, Kandkhot, Makori East, Pindori, and Tolanj West augmented by 12 percent, 17 percent, 28 percent, 2x, and 2x year-on-year, respectively.

Oil and gas reserves from new fields such as 92 Kot Palak, Mari Ghazij, Bolan East, Bettani (Wali), Kot Nawab, Nim East, Taj South, Fatah, Umair South East, Jhim East, and Shahpur Chakar North were added to the country’s total reserves by December 2023, cumulatively contributing 130 million barrels of oil equivalent (BOE) to the total reserves.

Brokerage Arif Habib Limited in a report said the oil reserves of OGDC displayed an uptick of 2 percent year-on-year, settling at 82 million barrels on account of the addition of new reserves such as Bettani (which has the third-highest oil reserves in the country), Nim East, and Kot Nawab with a reserve size of 13.2 million barrels, 0.2 million barrels and 0.1 million barrels, respectively.

Furthermore, Buzdar South, Chak-66 North East, Dars, Pindori, Tolanj West, and Jagir witnessed a growth in oil reserves.

In terms of gas reserves, OGDC showcased a decrease of 5 percent year-on-year, clocking in at 6,121 bcf amid fall in reserves of Uch, Qadirpur, Kunar West Deep, Naimat West, and Nashpa. Additionally, new gas reserves of Bettani, Nim East, and Umair South East with a size of 216 bcf, 2 bcf and 2 bcf , respectively, were included in OGDC’s total gas reserves.

PPL’s total oil reserves tumbled by 12 percent year-on-year to reach 25 million barrels owed to a reduction in reserves of Shahdadpur, Nashpa, Adhi, Miano, Makori East, and Adam. Parallel to this, gas reserves of PPL dwindled by 3 percent year-on-year on account of a slump in reserves of Qadirpur, Shahdadpur, Dhok Sultan, Sui, Rehman, and Mardankhel. Alongside this, the oil and gas reserves of Shahpur Chakar North, Jhim East, and Bolan East with a cumulative size of 11 million BOE were added to the company’s hydrocarbon reserve.

MARI’s oil reserves contracted by

76 percent year-on-year, arriving at 5 million barrels in December 2023. Similarly, MARI’s gas reserves declined by 12 percent year-on-year. The decline in oil and gas reserves of MARI is primarily due to significant reduction in reserves of Mari fields such as Bhitai, Shahbaz, Shaheen, Tipu/Mari Deep, SML and Hilal.

Meanwhile, the reserve of Mari Ghazij was added to the total gas reserves (reserve size of 34.9 bcf), while Bolan East’s oil reserve of 0.5 million barrels was included in the total oil reserves

POL’s oil reserves plunged by 63 percent year-on-year to settle at 12 million barrels, which is mostly due to the revision of Jhandial’s oil reserve estimates by the company (leading to a massive reduction in the oil field’s reserves). Likewise, the gas reserves of POL stood at 173 bcf in December 2023, depleting by 56 percent year-on-year, which is mainly attributable to the shrinking of Jhandial’s reserves by 100 percent year-on-yearowed to the aforementioned reason.