Oil production in the country fell 3% year-on-year to 26.8 million barrels, or 73,400 barrels per day (bpd), in FY22, according to a report by Pakistan’s leading brokerage house Topline Securities. Oil production in the country fell by 6% year-on-year in Q4 2022, against an increase of 17% in Q4 2021.
This was primarily due to: 1) decrease in production from the Nashpa, Adhi and Makori East oil fields and 2) no addition of a major oil field. On a QoQ basis, the decline in oil production was due to the annual turnaround at Meyal, Jhandial and Pariwali.
During FY22, Pakistani gas production fell 2% yoy to 3.38k mmcfd, broadly in line with the average production decline over the past 5 years.
Gas production in 4QFY22 contracted 2% year-on-year due to: 1) its association with lower oil production and 2) lower offtakes due to annual turnaround and maintenance work.
During the fourth quarter of fiscal 2022, gas production was flat or up a paltry 1% sequentially, despite lower offtakes from MARI due to the annual turnaround of the Foundation Power Company Daharki Limited (FPCDL) and Dakhni and Maramzai fields during the quarter.
As new block auctions were held last year, exploration activity in the newly awarded blocks should increase. Production flows in FY23 could also be higher due to recent discoveries in FY22.
In FY22, geological and geophysical (G&G) activity remained on the higher side where 3D seismic acquisition increased to 1,913 m². Kilometre. However, 2D seismic activity dates back to 2,507 square kilometers. Kilometre.
During the fourth quarter of FY22, geological and geophysical activity showed an increase with 3D seismic coverage increasing to 1,132 square kilometers. Kms while 2D dropped to 577 Sq. Kilometre. Going forward, there are 7 seismic surveys in 2D and 3D that will be completed during Q1 FY23.
In FY22, meterage drilling increased 43% year-on-year as the number of holes drilled was reported at 58 compared to 50 for the same period last year. Drilling activity (meterage) increased 20% year-on-year but fell 19% q-q to 44,500 meters in Q4 FY22.
A total of 8 wells were abandoned during the fiscal year 22 compared to 6 in the same period last year. During the fourth quarter of FY22, the exploration and production companies encountered three abandoned wells that were exploratory (Mian Miro Deep-1, Surghar X-1 and Bewato-1.
3 exploration and 4 development wells are planned for the first quarter of 2023.