Oil production crawls up 3pc

KARACHI: Pakistan’s oil production crawled up 3.0 percent to average 88,000 barrels/day for 11 months ended May 30, 2017, Topline Securities reported on Tuesday.

“Renowned producers like Oil and Gas Development (OGDC), Pakistan Petroleum (PPL) and Pakistan Oilfields (POL) had a more pronounced increase in their production levels during 11 months thanks to their aggressive exploration activities in the developed fields,” Nabeel Khursheed, analyst at Topline Securities said.

Oil productions in May 2017 marginally declined, primarily due to temporary shutdown of Nashpa field, which accounts for 26 percent of Pakistan’s total oil production, for about two weeks. The field has now resumed normal operations.

On company basis, POL had double digit growth of 12 percent mainly due to 900 barrels per day (bpd) addition from Mardankhel during May 2017 while OGDC’s production was just marginally up.

Temporary shutdown of Nashpa field during May 2017 affected OGDC’s production by 2000bpd. OGDC holds 56 percent stake in the field. Nashpa also affected PPL’s production as PPL holds 26 percent stake in the field.

On the flip side, OGDC’s gas production remained flat in May 2017, mainly on the back of lower flow from Qadirpur and Loti which offset the impact of 50 million cubic feet per day (mmcfd) of additional flow from Kunnar Pasaki Deep (KPD).  POL’s gas production grew by 17 percent primarily due to 11mmcfd of average gas addition from Mardankhel. On the other hand, improved flow from Adhi, Shahdadpur and Mardankhel (cumulative flow of 55mmcfd) lifted PPL’s gas production by 2.0 percent during May 2017.