Oil production declined three per cent year-on-year in 2021-22 to 73,420 barrels per day (bpd).
Lower production from Nashpa, Adhi and Makori East oil fields besides no addition of any sizable oil field led to the annual decline in oil production, according to Topline Securities analyst Mehroz Khan.
Similarly, gas production went down 2pc year-on-year to 3,388 million cubic feet per day (mmcfd) which is largely in line with the five-year average production decline.
Despite a flurry of discoveries in recent months, the country’s oil and gas production has been in consistent decline for many years. Crude production went down 4pc annually between 2014-15 and 2019-20. The average annual decline in gas production was 2.2pc over the same period, the latest Energy Year Book published by the Ministry of Energy shows.
However, exploration activity is likely to get a boost in the current fiscal year owing to “sizable discoveries” in 2021-22. “As new block auctions were held last year, exploration activity in the newly awarded blocks will likely increase,” said Mr Khan in a research note issued on Wednesday.
He said geological and geophysical activities remained on the higher side in 2021-22 with 3D seismic acquisition rising 1.2 times year-on-year to 1,913 square kilometres. Seismic acquisition means surveys that help exploration companies map geological structures under the earth’s surface. “Moving forward, there are seven seismic surveys of 2D and 3D, which are going to be conducted in July-September,” he said.
In 2021-22, the number of wells spudded remained 58 versus 50 a year ago. Drilling activities or meterage rose 20pc over the same period. Exploration and production (E&Ps) companies abandoned eight wells in 2021-22 versus six a year ago. E&Ps have planned three exploratory and four development wells for the first quarter of 2022-23. The former is drilled to find if oil and gas reserves exist in a field while the latter is dug in an area with proven energy reserves.