Pakistan’s oil reserves diminish to 540mln barrels

KARCHI: As of June 2020, Pakistan’s net oil reserves have declined by 5 percent to 540 million barrels, mainly owing to no significant production upgrade at the existing fields or addition of new ones to compensate for natural depletion of 4-5 percent, a brokerage report said on Tuesday.

“During the last six months, Pakistan local crude oil production was 13.2 million barrels; however, new reserves of only 1.82 million barrels were added through five new fields namely Kandiari, Ranjho, Dhok Hussain, Benari, and Yasar,” Muhammad Sohail, CEO at Topline Securities, said.

“Makori East (operated by MOL) reserves are up 7 percent or 2.9 million barrels. This is equivalent to 1-year production from this field, enhancing remaining life to 3.3 years.”

Sohail said Shahdadpur (operated by Pakistan Petroleum Limited) reserves increased by 94 percent to 7.57 million barrels.

“This upward revision in two fields was clouded by downward revision in Makhdumpur Deep field to the extent of 14 million barrels,” Sohail added.

Pakistan’s gas reserves have remained unchanged in the last six months despite production of 634 bcf. This is largely due to upward revision in Shahdadpur (operated by Pakistan Petroleum Limited) by 332.5 bcf, Miano (OMV) by 149 bcf, Buzdar South (UEP) by 30 bcf.

Along with these upward revisions in existing fields, five new fields’ reserves have also improved, contributing 64 bcf cumulatively.

Reserves at major fields like MARI, Uch, Qadirpur, Sui, and Kandhkot were down in line with production rates. Average remaining life of the country’s gas reserves is at around 17 years. With an aim to meet domestic fuel requirements through indigenous means and to bring down the country’s oil import bill, the government has fixed a target of producing 31.12 million barrels of oil and 1.58 trillion cubic feet (TCF) gas during the fiscal year 2020-21.

“The gap between indigenous gas/petroleum products and demand will be supplemented through liquefied natural gas (LNG) and petroleum imports,” according to the government’s Annual Development Plan devised for the upcoming fiscal year.