KARACHI: In a significant development for Pakistan’s energy sector, new oil and gas deposits have been discovered in the Kohat district of Khyber-Pakhtunkhwa (K-P). The well, operated jointly by Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL), marks a critical step towards enhancing the country’s energy security.
Additionally, PPL has revamped gas compressors at the Sui gas field to boost output from aging wells. These advancements are expected to reduce Pakistan’s reliance on costly energy imports, conserving foreign exchange reserves.
In notifications to the Pakistan Stock Exchange (PSX) on Tuesday, OGDCL, PPL, and POL reported testing approximately 16.4 million standard cubic feet per day (mmscfd) of gas and 159 barrels per day of condensate from the Kawagarh-1 formation in the Razgir-1 exploration well, drilled on January 9, 2024. The TAL joint venture, comprising OGDCL (30% interest), MOL Pakistan Oil and Gas Co BV (10%), PPL (30%), POL (25%), and Government Holdings Private Limited (5%), made the discovery.
OGDCL highlighted that this discovery de-risks further exploration in the TAL block, enhancing the country’s hydrocarbon supply and reserves. POL noted that the initial test results might differ significantly from actual production figures once ongoing testing operations are completed.
PPL’s notification underscored the discovery’s contribution to improving energy security by utilizing indigenous resources. Additionally, PPL announced a production boost at the Sui Gas field, with revamped SML compressors increasing output by 19 mmscfd. This initiative, completed between March 2023 and June 2024, helps bridge the energy demand-supply gap and saves foreign exchange.
These announcements positively impacted the share prices of the listed oil and gas firms, leading to notable turnover at the PSX on Tuesday.
Earlier, in mid-July 2024, POL reported discovering 714 barrels of crude oil per day and 10.2 mmcfd of gas from the Jhandial-03 well in the Ikhlas Block, Attock District. This discovery accounts for about 1% of the country’s total oil production and 0.3% of its gas output.
Weekly production data shows crude oil production at 68,248 barrels per day and gas production at 3,146 mmcfd for the week ending June 23, 2024. Energy experts estimate that Pakistan meets nearly 70% of its energy needs through imports, with local production covering only 30%. Energy imports accounted for over one-fourth ($15.34 billion) of the total $49.85 billion in imports for the first 11 months of the previous fiscal year.
The government’s recent policy approval for tight oil and gas discoveries, offering a 40% higher tariff compared to conventional hydrocarbons, is expected to further boost local production and reduce import dependency.
Story by Salman Siddiqui
