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February 6, 2020

PPL plans to export 400,000 barrels of crude condensate

Business

February 6, 2020

KARACHI: Pakistan Petroleum Limited (PPL) plans to export up to 400,000 barrels of crude condensate produced from its Gambat South Block, as the company explores opportunities to grow internationally and become a regional leader in exploration and production, The News has learnt.

According to a company document, the PPL aims to export as much as 32,500 barrels/month through a third party contractor.

Gambat South is located in District Sanghar, Sindh. The block was granted to PPL in December 2009. Later, the company farmed out 10 percent of its working interest in the block to Asia Resources Oil Limited and 25 percent to Government Holdings (Private) Limited in June and July 2010, respectively.

So far, nine discoveries, Wafiq, Shahdad, Sharf, Kinza, Faiz (two formations), Kabir, Hatim, and Zafir have been made in the block with the latest in April 2017. Last year Gambat South Block produced 830 barrels of condensate/day.

An industry official said country’s oil production had increased but this increase was coming in the shape of condensate and other light crudes, which the local refineries could convert primarily into furnace oil (FO). “Since furnace oil demand has declined to zero and a local refinery is already exporting its produce, the crude condensate exports will increase going forward,” the official added.

The PPL, the pioneer of the natural gas industry in the country, exported crude condensate worth Rs1.24 billion for the year ended June 30, 2019. According to Pakistan Bureau of Statistics (PBS), country’s overall crude/condensate exports were $110.319 million in the first half of current fiscal year.

Pakistan is an energy deficient country and relies heavily on hydrocarbons imports. The country produces around 85,000 barrels of oil/day which constitutes around 15 percent of the oil consumption, with the rest being imported.

Pakistan had resumed export of crude oil in 2014 after a gap of 10 years. Export of crude started after the discovery of the Badin gas field along with the by-produce condensate in the 1990s. The refineries initially didn’t have the capability to process the condensate but when Attock and Pak Arab refineries started consuming most of the domestic supply, the government restricted exports in 2004.