Pakistan’s oil and gas sector has received a major boost, with the country’s total oil reserves increasing by 26% to 243 million barrels as of June 2024, according to the latest data from the Pakistan Petroleum Information Service (PPIS).
Key Companies Driving the Increase
The increase is mainly due to significant reserve upgrades by two major companies: Oil and Gas Development Company (OGDC) and Mari Petroleum Company Ltd (MARI).
- OGDC: The company reported a 64% increase in its oil reserves. This rise is largely because of improvements in key fields like Kunar and Pasakhi/Pasakhi North. Reserves in Kunar increased to 10.6 million barrels, and in Pasakhi/Pasakhi North, they rose to 15.15 million barrels. However, OGDC also faced a 30% decline in the oil reserves of its Nashpa field and an 8% decrease in its overall gas reserves due to natural declines in older fields.
- MARI: MARI’s oil reserves have doubled since December 2023, reaching 13.4 million barrels. This increase is due to new reserves from the Bannu West (Shewa) field and upgrades in the Bolan East reserve. MARI also saw a 25% increase in its gas reserves, with the Mari Ghazij field’s reserves growing from 35 billion cubic feet (bcf) to 789 bcf.
Mixed Results for Other Areas
- Tal Block: Pakistan Oilfields Ltd (POL) saw a 10% decline in both oil and gas reserves, mainly due to ongoing production. However, the recent discovery of Razgir-1 is expected to help improve these numbers in the future.
- Pakistan Petroleum Ltd (PPL): PPL experienced a 6% decrease in its oil reserves and a 4% drop in gas reserves, mainly because of production activities. The company has managed to stabilize its reserves through timely maintenance work.
Overall Gas Reserves
Pakistan’s overall gas reserves have only increased by 2% to 18.5 trillion cubic feet (tcf), which is a modest gain. Despite declines in other major fields, the increase in oil reserves, especially for companies like OGDC and MARI, is seen as a positive development for the sector.
Outlook
The improvements in oil reserves for OGDC and MARI are expected to boost their revenues. MARI’s oil reserves are now close to those of the Tal Block, allowing the company to reduce its reliance on gas.
These developments offer a cautiously optimistic view for Pakistan’s energy sector as the country continues to manage its energy production and reserves.
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