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Oil production up 19%, gas down 1% in 1Q FY15

Oil production up 19%, gas down 1% in 1Q FY15

KARACHI: Pakistan’s oil an average production increased by 19 percent in the first quarter of 2014-15 (1Q FY15) to stand at 94,000 barrels of oil per day (bopd) as compared with 79,000 bopd in corresponding period last year, whereas the average gas production during the period dropped 1 percent to 3,955 million cubic feet per day (mmcfd) versus 3,977 mmcfd in 1Q FY14.

Overall, the hydrocarbon production in Pakistan, which stood at an average 787,000 barrels of oil equivalent per day (boed) in 1Q FY14, averaged 799,000 boed in 1QFY15, up merely 1 percent in 1Q FY15 as per statistic provided by exploration and production of companies to local equity research centre.

The net realised prices on oil sales are 5.5x higher than that on gas. Hence, revenue growth from higher oil production outweighs revenue-loss from decline in gas production for exploration and production companies in Pakistan. However, in 1Q FY15, Arab Light prices averaged $103.4/bbl versus $108.6/bbl in similar period last year, while 2 percent average rupee appreciation against US dollar also failed to favor local exploration and production players. Oil and Gas Development Company achieved 4 percent improvement in total production with the 2 percent growth in average oil production and 4 percent higher gas in 1Q FY15, showing cumulative hydrocarbon production of Compnay was up 4 percent to stand at 259,000 boed as compared to 250,000 boed in corresponding period last year. The Company benefited from higher production in blocks like Nashpa and Tal, where cumulative average production contributed 17,000 bopd (41% of OGDC’s total oil production), up 30 percent from 13,000 bopd in 1Q FY14.

Pakistan Petroleum recorded average production of 157k boed versus 160k boed in 1Q FY14, down 2 percent. Its average oil production registered highest growth of 23 percent averaging 14,000 bopd versus 12,000 bopd in 1Q FY14.

On the contrary, gas production declined 4 percent to average 802 mmcfd versus 834 mmcfd in similar period last year. Driven by volumetric growth in Tal and Naspha, PPL’s oil production grew substantially during the period. However, this impact was mainly offset by 25 mmcfd decline in gas production from Sui.

In FY14, cumulative hydrocarbon production of Pakistan Oilfields was down 5 percent at 19, 000 boed as compared to 20,000 boed in corresponding period last year. Its oil production posted an increase of 15 percent as it stood at 6,413 bopd versus 5,563 bopd in 1Q FY14. This was mainly due to higher production from Tal block, which contributed 68 percent to POL’s total oil production versus 57 percent in 1Q FY14. The Company’s average gas production dropped to 70 mmcfd versus 81 mmcfd in 1Q FY14 down 13 percent.

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Published on:
October 15, 2014
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