Oil and gas production in the country is likely down by 1 percent and 2 percent respectively during the second quarter of the current fiscal year (FY22) compared to the same period in the previous fiscal year, according to a report published by Topline Securities.
The contraction is largely due to a decline in production from Nashpa, Adhi, and Makori East oil fields and no addition of any sizable production oil field. The contraction in gas production is due to its association with lower oil production and lower offtakes due to annual turnaround and maintenance.
According to the report, oil production during the half-year FY22 is expected unchanged compared to the same period in FY21, whereas gas production is expected to decrease by 4 percent in the same period.
During the second quarter of FY22, gas production was down 2 percent quarter-on-quarter (QoQ) driven by lower production from Uch field as Uch Power Limited (UPL) turbines remained offloaded owing to less demand from Water & Power Development Authority (WAPDA). Mari gas production was affected on the back of minimum gas offtakes from Fauji Fertilizer Company Limited (FFC) due to annual turnaround coupled with plant compressors issue which disrupted supply to Pak Arab Fertilizers.
The gas production was also disrupted due to the suspension of gas offtakes at Guddu Thermal Power Station (GTPS). This led to lower offtakes from Mari, Kandhkot and Chachar fields, according to the report.
During the second quarter of FY22, geological and geophysical activities also showed a decline, with 3D seismic acquisition falling by 65 percent year-on-year (YoY) and 53 percent QoQ to 100 sq km, while 2D also decreased by 64 percent YoY and 60 percent QoQ to 316 sq km.
The report further said that there are 15 exploratory and development wells (5 each month) planned for the third quarter of FY22.