Pakistan’s O&G Production Rises, Mixed Exploration Trends

Pakistan’s oil and gas sector recorded year-on-year growth in production during the month, while exploration activities showed mixed trends, with a sharp increase in exploratory drilling offset by a significant decline in development well drilling.

Oil production rose by 10% year-on-year, while gas production increased by 8%, despite disruptions linked to the curtailment of regasified liquefied natural gas (RLNG). However, the month-on-month performance remained mixed, as oil production declined by 5%, while gas production edged up by 1%.

The latest figures indicate that although the sector maintained annual production growth, short-term trends varied between oil and gas output.

One Dry Well Recorded

The sector recorded one dry well during the month, Ishraq X-1, operated by Pakistan Petroleum Limited (PPL).

A dry well is an exploratory or development well that fails to discover commercially recoverable hydrocarbons. Such outcomes can affect exploration costs and highlight the risks associated with oil and gas exploration.

Exploratory Drilling Surges

Exploration activity recorded a substantial increase during the month, with exploratory well drilling rising 4.5 times month-on-month. The increase indicates a significant pickup in drilling activity aimed at identifying potential oil and gas reserves.

In contrast, development well drilling declined by 57% compared with the previous month, reflecting a slowdown in activities focused on developing known hydrocarbon resources.

The divergence between exploratory and development drilling points to differing trends in the sector’s efforts to identify new reserves and advance existing discoveries.

Seismic Survey Activity Expands

Seismic acquisition activity also showed movement during the month. Two-dimensional (2D) seismic acquisition stood at 32.03 line kilometres, while three-dimensional (3D) seismic acquisition surged by 62% month-on-month.

Seismic surveys are an important component of oil and gas exploration, helping companies assess underground geological formations and identify potential hydrocarbon-bearing structures before committing to drilling.

The increase in 3D seismic acquisition suggests a rise in survey activity compared with the previous month, while the recorded 2D acquisition reflects continued exploration-related work.

Overall, Pakistan’s oil and gas sector posted higher year-on-year oil and gas production, alongside a sharp increase in exploratory drilling and 3D seismic activity. However, the monthly decline in oil output and development well drilling, together with the dry well at Ishraq X-1, highlights the mixed performance of exploration and production activities during the period.

Hydrocarbon Production: Oil and gas production rose 10% YoY and 8% YoY, respectively, amid RLNG curtailment disruptions. However, on a MoM basis, oil production went down by 5%, while gas production was slightly up by 1%.

The sector recorded a 4.5x MoM increase in exploratory well drilling; however, a 57% MoM decrease in development well drilling. Meanwhile, 2D seismic acquisition was recorded at 32.03 L.KMs and 3D seismic acquisition surged by 62% MoM.

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