Oil output expected to rise to 40m barrels next year

 Oil output expected to rise to 40m barrels next year

 

The government has set the production target for crude oil at 40 million barrels for the next financial year, an increase of 12% over the goal for the outgoing year.

This year, the target is 35.62 million barrels and actual production is likely to be 35 million barrels by the end of the year on June 30, which is 98% of the output the government expected to achieve.

In 2014-15, maximum crude oil production per day is 100,000 barrels per day and the government plans to increase it to 110,000 barrels per day in the next financial year, beginning July.

For gas production, the target has been set at 1.5 trillion cubic feet for the next financial year, which is only 2% higher than the target of 1.470 trillion cubic feet for the outgoing year. Actual output this year is expected to be 1.460 trillion cubic feet, hitting 99.32% of the goal.

Oil and gas exploration companies are planning to drill 126 wells to meet the target for the next year.

According to the Annual Plan 2015-16, next year the demand is projected to stand at 23 million tons of oil (473,000 barrels per day) and 2.1 trillion cubic feet of gas (six billion cubic feet per day).

Keeping in view the expected supply of domestically produced oil at only 110,000 barrels per day and 1.5 trillion cubic feet of gas, the gap between supply and demand is required to be met through imports.

About 18 to 19 million tons of crude oil and petroleum products will be imported while domestic gas supply will be supported through import of 400 million cubic feet of liquefied natural gas (LNG) per day. This will result in bridging to some extent the gap of over two billion cubic feet of gas per day.

A positive feature for the energy sector in the past one year had been a sharp decline in international crude prices, which triggered a 29% fall in domestic petroleum product prices. With this, costs of transport and electricity generation have also gone down.

In an effort to enhance the exploration and production of oil and gas, a study on shale oil and gas deposits is being conducted with financial assistance of the US Agency for International Development (USAID) and it is expected to be completed by the end of 2015.

The study will give an assessment and allied aspects of shale oil and gas resources in the country, paving the way for development of a comprehensive and investment-friendly shale oil and gas policy.

In order to extend their network in 2014-15, gas utilities – Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) – laid 6,799 km of new transmission and distribution pipelines to provide gas to 418,410 new consumers.

Next year, they plan to add a further 419,430 consumers by laying 7,332 km of new transmission and distribution pipelines.

Published in The Express Tribune, June 9^th, 2015.

Follow @VoPMLN
Tweet #VoPMLN

Read More

Pakistan Oilfields earnings up 15pc

Pakistan Oilfields earnings up 15pc

KARACHI: Pakistan Oilfields Limited (POL) recorded an after-tax profit of Rs4.2bn for the first quarter of this fiscal year, translating into earnings per share (eps) at Rs17.62.

It represented a growth of 15pc over Rs3.6bn profit (eps Rs15.25) in the year-ago period.

Investment analyst Muhammad Affan Ismail at BMA Capital Management Ltd said the results were above consensus forecast on account of lower-than-estimated amortisation charges (down 30pc year-on-year) primarily due to high base effect. “To recall, POL reported a hefty amortisation write-off pertaining to reserve downgrade at Manzalai field last year,” he said.

The surge in earnings during July-September could also be attributed to 11pc increase in sales to Rs9.8bn on account of 19pc higher oil production.

Other income of the company declined by 32pc to Rs830m on account of 20pc lower dividend from APL at Rs174m and absence of payout from NRL.

Published in Dawn, November 1st, 2014

Follow @VoPMLN
Tweet #VoPMLN

Read More

New discoveries | PPL on the roll

 New findings: PPL on a roll, makes fourth discovery

The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day. PHOTO: KASHIF HUSSAIN/EXPRESS

KARACHI: 

Pakistan Petroleum Limited (PPL) has announced that it hit another petroleum reserve in the Gambat South Block, its fourth discovery in the particular lease, which is located in Sanghar district, Sindh.

The exploration well, Kinza X-1 was spud on July 28 this year and reached the final depth of 3,695 metres on September 13.

“Initial testing flowed 12 million cubic feet per day (mmcfd) of gas along with condensate, thereby confirming presence of commercial quantities,” the company said in a statement.

PPL is the operator of Gambat South block with 65% working interest along with its joint venture partners Government Holdings and Asia Resources Oil Limited, which holds 25% and 10% interest, respectively.

In the same block, it has already found three producing wells – Wafiq, Shahdad and Sharf.

“Based on wire line logs, potential hydrocarbon bearing zones were identified in the Massive Sand of Lower Goru Formation, which are under testing,” PPL said.

The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day, it said.

The well is being flowed at different choke sizes to measure gas flow rates and the actual flow potential will be determined after the completion of the test.

In August, the company announced discovering 42 mmcfd of gas in Gambat South, its third and biggest discovery in the block. At the time, PPL said it was expecting the production to go up to 60 mmcfd.

It made the first two discoveries in Gambat last year.

Last month, another producing well was discovered in the Hala block, located in Sanghar and Matiari districts, Sindh.

The company said the well could produce 18.6 mmcfd of gas and 31 bpd of condensate from exploratory well Adam West X-1.

Hala is a joint venture between PPL and Mari Petroleum Company Limited, with 65% and 35% working interest, respectively. It covers as area of about 395 square kilometres.

PPL currently produces 10 mmcfd of gas and 150 bpd of condensate from another well in the Hala block.

PPL, which has a portfolio of 47 exploration blocks, has been aggressively searching for new hydrocarbon finds since last year to compensate for the decrease in production from its established fields like Sui.

State-run PPL had earmarked Rs10 billion to be spent on exploration activities during the last fiscal year with most of the focus on Gambat South.

The company accounts for 22% of the country’s gas production. In the fiscal year 2013-14, PPL posted a profit of Rs51.41 billion, up 23% over the previous year.

It has been trying to cut the depletion rate of its fields by installing compressor plants and drilling more wells.

PPL’s six producing fields include Sui, Kandhkot, Adhi, Mazrani, Chachar and Hala, while it has working interest in eight partner-operated fields.

Published in The Express Tribune, October 15^th, 2014.

Follow @VoPMLN
Tweet #VoPMLN

Read More

China to invest 18 billion USD in Oil and gas sector

 

Read More

Last 8 months | Direct foreign invesment boosted by 18 %

Published in Daily Express dated March 15, 2014

http://express.com.pk/images/NP_LHE/20140315/Sub_Images/1102124987-2.gif

Read More

DAR urges the public to cash USD

http://www.dailywaqt.com/03-13-2014/images/55.gif

Read More

#BetterPakistan | Domestic Oil Production boosted by 7%

Good work Mr. Shahid Khaqan Abbasi

 

Express News 23 November 2013

http://express.com.pk/images/NP_LHE/20131123/Sub_Images/1102023013-1.gif

Read More