Pakistan’s oil and gas production declined in April, with oil output dropping by 14% year-on-year (YoY) to an average of 58,890 barrels per day (bpd), while gas production fell by 8%, averaging 2,717 million cubic feet per day (mmcfd), according to the latest data released by the government.
For the first 10 months of the current fiscal year, the decline continued with oil and gas production dropping by 11% and 7% YoY, respectively, averaging 63,543 bopd and 2,917 mmcfd. The drop in output is largely attributed to forced curtailments in production at major oil and gas fields, primarily due to reduced consumer demand for gas.
According to brokerage house Arif Habib Limited, curtailment is partly linked to the availability of imported regasified liquefied natural gas (RLNG) from Qatar under long-term contracts.Â
However, the situation may improve with the expected rise in electricity demand during the summer months, which could lead to an increase in gas demand and a potential rebound in production.
Pakistan’s oil and gas sector has been experiencing a consistent decline in output over the years. Oil production peaked at 98,519 bopd in November 2014, while gas production reached 4,127 mmcfd in May 2008. Since those highs, production has been on a downward trajectory.
The drop in output in the first nine months of FY2025 is mainly due to curtailments at major fields, such as Nashpa and TAL blocks, along with lower gas demand. Other key fields, including Makori East, Pasakhi, Adhi, Chanda, and Mardenkhel, have also seen reduced production levels.
In terms of exploration, 15 exploratory wells and 23 appraisal or development wells were drilled during this period, falling short of the annual targets of 27 and 40 wells, respectively.
