PPL plans $40mn deep drilling at Sui: report

Pakistan Petroleum Limited (PPL), one of the country’s largest E&P companies, plans to drill a 6,000-metre exploratory well at its Sui field in fiscal year 2027-28, targeting an initial 2 trillion cubic feet (TCF) of gas, as the company steps up exploration efforts to offset declining output from mature fields.

The development came during an analyst briefing session held on Wednesday, reported Arif Habib Limited (AHL) in its report.

“Sui Deep drilling is targeted for FY28, with a planned depth of 6,000 metres and an initial gas target of -2 TCF. High temperature and high pressure conditions pose technical challenges, with estimated Capex of $35-40 million,” read the report.

The project is part of the company’s broader efforts to sustain and increase production as its mature fields experience natural depletion of around 8-9% annually.

According to the report, PPL expects production to rise to around 680 million cubic feet of gas equivalent per day (MMscfde) in FY27, up from 649 MMscfde in FY26.

“PPL expects to add 33mmcfde of incremental production during FY27, primarily from discoveries at Baragzai in Nashpa, Latif-25, Makori East, Tolanj West and Rehman-9 in the Kirthar Block. Development activities at these fields are expected to contribute around 17mmcfd,” read the report.

The company is also advancing infrastructure projects to bring additional gas into the system.

“The Zafir gas processing plant is expected to commence operations in December 2026, initially contributing around 20mmcfd of sales gas before ramping up to 40mmcfd in the second phase. PPL holds a 65% working interest in the project,” read the report.

Another facility, the Pateji gas processing plant in Sujawal, is under construction and is expected to be commissioned by June 2027. The facility is expected to contribute around 16 mmcfd of additional sales gas and generate approximately Rs8 billion in revenue, added the report.