KARACHI: Pakistan’s oil and gas production witnessed a continued downturn in April, with oil output falling by 14% year-on-year (YoY) to 58,890 barrels per day (bopd) and gas production dropping 8% YoY to 2,717 million cubic feet per day (mmcfd), according to official data released Monday.
Cumulatively, during the first 10 months of the current fiscal year, oil production averaged 63,543 bopd (down 11%), while gas output averaged 2,917 mmcfd (down 7%).
Analysts attribute the decline to forced curtailments at major fields like Nashpa and TAL blocks, amid lower domestic gas demand due to sufficient supply from imported RLNG under long-term contracts. “There’s already enough gas in the system while consumer demand remains subdued,” said Muhammad Iqbal Jawaid, Assistant Vice President of Research at Arif Habib Limited.
However, a seasonal rebound may be on the horizon, as electricity demand is expected to increase during the summer, potentially driving up gas usage and boosting production.
Despite this hope, the overall trend remains concerning. Oil production, once peaking at *98,519 bopd in November 2014, and gas production at **4,127 mmcfd in May 2008, has consistently declined. Exploration efforts have also lagged, with only *15 exploratory and 23 appraisal/development wells spudded in the first nine months—well below the annual targets of 27 and 40, respectively.
Story by Tanveer Malik
