KARACHI: Pakistan oil production has declined by 14 percent during the week ended on June 23, 2020 on the back of 35 percent lower flows from Tal Block.
The Tal Block contributes over 25 percent in the country's domestic crude production.
Tal block production fell due to some local issues in the area, however, situation and flows have normalized now, Shankar Talreja an analyst at Topline Securities said.
Production from Nashpa was also down by 21 percent on week-on-week basis.
Gas production, during the same week, has increased by 2 percent, in spite of 29 percent decline in Tal Block flows. Production from Mari field has reached an all time high, with weekly average clocking in at 737mmcfd, up 18 percent on week-on-week basis.
To recall, gas production from Mari Habib Rahi Limestone (HRL) field is entitled to receive incentivize pricing based on Petroleum Policy 2012, if production increases beyond 577.5mmcfd (10 percent higher than threshold level of 525mmcfd), Shankar Talreja said.
Normal flows (below 525mmcfd) are priced at 50 percent of 2001 policy, he added.
Amongst companies, Pakistan Oilfields (POL) witnessed the largest decline of 23 percent on week-on-week basis in its oil production as majority of its reliance is on Tal Block. PPL, OGDC and MARI witnessed decline of 20 percent, 10 percent and 2 percent on week-on-week basis, respectively in their oil production.
On gas front, MARI and PPL witnessed increases of 17 percent and 4 percent on week-on-week basis, respectively while OGDC and POL flows declined by 3 percent and 24 percent on week-on-week basis respectively.
Copyright Business Recorder, 2020
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