Gas production falls 5pc to 3.6bcfd in April

KARACHI: Gas production in the country fell five percent year-on-year to 3.691 billion cubic feet/day (bcfd) in April as all the major producers witnessed slowdown in outputs, a brokerage reported on Thursday, further widening gap in demand and supply of the primary energy mix.

Optimus Capital Management said gas production was down one percent month-on-month in April. Demand of gas, which accounts for 48 percent share in the primary energy mix, hovers over 6 bcfd. Gas shortfall will likely more than double to 4,600 million metric cubic feet/day (mmcfd) in the next five years.

Gas production of the Oil and Gas Development Company (OGDC) averaged 1.052 bcfd in April, down 4.5 percent month-on-month, the brokerage said, referring to the Pakistan Petroleum Information Service’s provisional data. Pakistan Petroleum Limited’s (PPL) gas production remained flat at 869 million metric cubic feet/day (mmcfd) in April compared to March. Pakistan Oilfield’s (POL) gas production was down 2.9 percent month-on-month to 86 mmcfd.

In April, production at Sui and Kandhkot remained largely flat in April over March, averaging 375 and 212 mmcfd, respectively. Gas production from KPD-TAY, Nashpa and Adhi were down five percent apiece, averaging 190, 90 and 64 mmcfd, respectively. Jhandial’s offtake remained lacklustre, with eight percent month-on-month drop to five mmcfd in April.

Optimus Capital said Kekra-1 well has been drilled down to 4,810 meters, with a target depth of 5,460 meters, according to the latest drilling activity report. “The operator is currently focused on strengthening the well’s core.

Oil production in the country fell five percent year-on-year as well as month-on-month to 85,424 barrels per day (bpd) in April as the main indigenous blocks were facing depletion in reserves.

Optimus Capital Management said oil production from Adhi block averaged 8,929 bpd in April, down 3.4 percent month-on-month, while Nashpa’s production stood at 18,612 bpd, falling 2.9 percent month-on-month, “likely driven by natural depilation”.

“This was further exacerbated by the annual turnaround and natural depletion at the Sinjhoro block, which lowered oil production from the well by 49 percent month-on-month,” Optimus Capital said.

“The lower production from the Sinjhoro block can be attributed to the natural depletion at the well, along with a planned annual turnaround. As a part of the turnaround, production from the block was halted during the week ended 23 April.”

In April, oil production from OGDC averaged 40,061 bpd, down 4.2 percent month-on-month. Oil output from PPL declined 2.5 percent month-on-month to 15,742 bpd, while oil production from POL fell three percent month-on-month to 6,845 bpd in the previous month.