ISLAMABAD: Ostensibly owing to frequent shutdown of critical oil and gas wells, MOL Pakistan has raised alarms regarding a potential complete shutdown of oil and gas production from the Tal Block.
This warning comes amid deteriorating conditions in the country’s gas sector, reportedly exacerbated by the poor policies of the Petroleum Division. The Tal Block, a significant contributor to Pakistan’s energy resources, is facing critical challenges due to high network pressure in Sui company’s system, which has already led to the curtailment of production.
In a formal letter, a copy of which is available with Profit, addressed to Abdul Rasheed Jokhio, Director General (Gas) of the Ministry of Energy’s Petroleum Division, Ali Murtaza Abbas, Regional Vice President of MOL Pakistan highlighted the severity of the situation. The letter, dated September 3, 2024, explained that MOL Pakistan’s production facilities, including Central Processing Facility (CPF), Manzalai Gas Processing Facility (MGPF), and Tolanj Processing Facility (TPF), have been significantly impacted since August 28, 2024. The facilities have experienced a forced reduction of 110 million standard cubic feet per day (MMscfd) of gas due to the elevated network pressure, reaching around 1,250 pounds per square inch gauge (Psig).
This persistent issue has forced the closure of critical wells, raising concerns about permanent production loss. “Frequent shutdowns of critical wells may lead to a complete loss of production,” Abbas warned in his letter. The situation has worsened as some wells in the Tal Block, already in their mature stages, have experienced liquid loading and productivity declines during these forced curtailments earlier this year. These issues have severely affected production levels and, in some cases, caused reservoir damage.
MOL Pakistan further warned that if this situation persists, the country could face irreversible damage to its oil and gas reserves. Prolonged exposure to extreme pressure could also result in mechanical breakdowns, further disrupting the supply of sales gas from the Tal Block. Any such disruptions could have far-reaching consequences, as the Tal Block is a major source of hydrocarbons for Pakistan’s energy sector.
Regional VP MOL Group urged the Petroleum Division to take immediate action to normalize the situation and prevent a potential shutdown of oil and gas production. “We request your urgent intervention in addressing this critical issue affecting hydrocarbon production from the Tal Block,” he stated.
This dire warning from MOL Pakistan comes at a time when Pakistan is already grappling with energy shortages and high LNG import costs. If the production from Tal Block comes to a halt, the country’s energy crisis could worsen, leaving the government with limited options to meet rising demand during the winter months.
