ISLAMABAD: Pakistan’s oil and gas sector has received a substantial boost, with the country’s total oil reserves increasing by 26% to 243 million barrels as of June 2024, according to the latest data released by the Pakistan Petroleum Information Service (PPIS).
According to IMS Research, this significant rise is largely driven by notable reserve upgrades in key energy companies, particularly Oil and Gas Development Company (OGDC) and Mari Petroleum Company Ltd (MARI).
OGDC and MARI lead the charge
OGDC reported a 64% increase in its oil reserves, driven by major upgrades in key assets like Kunar and Pasakhi/Pasakhi North, which saw their reserves rise to 10.6 million barrels and 15.15 million barrels, respectively. Despite these gains, OGDC experienced a 30% decline in the oil reserves of its Nashpa field and an 8% reduction in its overall gas reserves due to natural declines in mature fields.
Meanwhile, MARI’s oil reserves have doubled since December 2023, reaching 13.4 million barrels, bolstered by the addition of reserves from the Bannu West (Shewa) field and the Bolan East reserve upgrade. MARI also saw a significant 25% increase in its gas reserves, with the Mari Ghazij field’s reserves surging from 35 billion cubic feet (bcf) to 789 bcf.
Tal Block and PPL show mixed results
The Tal Block, which is crucial to Pakistan Oilfields Ltd (POL), experienced a 10% decline in both oil and gas reserves, attributed mainly to production. Despite these declines, the recent discovery of Razgir-1 is expected to offset some of the reductions, offering a potential uplift in the future.
Pakistan Petroleum Ltd (PPL), however, saw a 6% decrease in its oil reserves and a 4% drop in gas reserves, primarily due to ongoing production activities. The company has managed to stabilize its reserves position through timely workover jobs, which are designed to maximize the life of its existing fields.
The overall modest 2% increase in Pakistan’s gas reserves to 18.5 trillion cubic feet (tcf) is seen as a mixed outcome, given the declines in other major fields. The upgrades in oil reserves, however, particularly for listed exploration and production (E&P) companies like OGDC and MARI, suggest a positive outlook for the sector.
This update is particularly favorable for OGDC and MARI, both of which are poised to see enhanced revenue streams from their bolstered oil reserves. With MARI’s oil reserves now close to those of the Tal Block, the company is expected to further diversify its revenue, reducing its reliance on gas.
As Pakistan continues to navigate the challenges of energy production and reserves management, these developments provide a cautiously optimistic outlook for the country’s energy sector, especially for key players like OGDC and MARI.
