PPL sees production gain, it says

Pakistan Petroleum Limited (PPL), a key supplier of natural gas in the country, said it has seen a significant increase in its hydrocarbon reserves following the production enhancement of its wells.

PPL, in a notice to the Pakistan Stock Exchange (PSX) on Friday, shared that a rigless production enhancement campaign was completed from June to September 2023, which resulted in significant production gain of approximately 13 MMscfd of gas and 90 barrels per day (bpd) of condensate from the existing wells.

“The company is pleased to inform that being a major stakeholder in Pakistan’s energy outlook, its management remains committed to securing the energy future of the country by exploiting all available resources at its disposal to maximize domestic hydrocarbon production,” said PPL in a notice.

PPL highlighted that with many of its producing fields maturing and on their natural decline, it is imperative that the decline is arrested by realization of enhancement opportunities through existing resources.

The company shared that multiple potential candidates (wells) for production enhancement were selected using state-of-the-art techniques ensuring no additional expenditures and production loss for their maturation. PPL informed that the company added approximately 6MMscfd gas and approximately 90 bpd condensate production in Sui and Gambat South fields from six wells i.e Sui-7, Sui-96, Sui-36, Sui-104, Sharf-3 (Gambat South) and doubled the production in Kabir X-1 (Gambat South) by adding perforations in relatively less depleted zones.

Meanwhile, gas production was increased by approximately 5MMscfd in Sui field from four wells i.e. Sui-115, Sui-67, Sui-93, Sui-100 by successful removal of near wellbore damage. Moreover, gas production was enhanced by approximately 2MMscfd gas production from Sui-108 by optimizing wellhead surface fittings and chemical inhibition strategy.

PPL shared that its Fazl X-1 (Hala block) was caught up with sharp production decline and ceased to flow due to suspected scale deposition in the wellbore.

“Timely diagnosis and remedial job were performed and revived at its optimum potential i.e 7.5MMscfd gas and 10 bpd condensate,” said PPL.

The OMC said that the additional hydrocarbon production will contribute in reducing the energy demand and supply gap, and will save significant foreign exchange for the country.

“The company will continue exploring new production enhancement opportunities through rigless and other new techniques as well as short rig workovers in the near future,” it concluded.

As per the company’s latest financial statement, PPL saw its profit-after-tax (PAT) jump nearly 79%, as it clocked in at Rs97.22 billion for the year ended June 30, 2023. In the same period last year, the exploration and production company saw PAT of Rs54.35 billion.