Pakistan’s top hydrocarbon producer, Oil & Gas Development Co. (OGDC), reported a 2.8% year-on-year rise in crude output in the quarter ending September 30. In a filing, the state-run producer announced that an average of 40,230 bpd of oil was lifted in the three-month period, compared with 39,154 bpd a year earlier.
OGDC, which is responsible for roughly half of national crude output in Pakistan, attributed the growth to climbing yields at the Kunnar, Rajian and Sinjhoro oilfields. It also cited an increase in the company’s share of extraction at fields where it is partnered with other producers.
The promising result follows OGDC’s announcement several weeks ago that it had set a new record for daily oil output of 48,767 barrels. The company’s previous peak production level was registered in 2008 at 46,000 bpd.
In an October 14 statement, the firm said the rise in yields was evidence that management’s focus on increased exploration work and drilling was starting to pay off.
OGDC noted that a record amount of seismic data had been collected over the past 16 months, adding that some 95,000 metres of drilling had taken place in June, up from 53,000 metres a year earlier. The Islamabad-based firm aims to increase output further to 50,000 bpd by year-end following the launch of new fields.
OGDC’s figures for gas production in the quarter were less encouraging, with output dropping to 2.74 bcm from 2.83 bcm in the corresponding period of 2015.
The firm blamed the decline on a fall in output at the Qadirpur, Dakhni and Nashpa fields owing to scheduled maintenance work. Production of LPG, meanwhile, rose by 28% to 342 tonnes per day on the back of increased yields at the Sinjhoro field.
OGDC noted that its average realised price for crude oil in the three months ending September 30 dropped from US$52.46 to just US$44.37 per barrel.
The company’s exploration spending rose steeply from 1.81 billion Pakistani rupees (US$17.2 million) to 4.32 billion rupees (US$41.2 million). During the period, seismic work was shot at a number of exploration blocks, including Mari East, Kulachi, Pezu, Ranipur, Khanpur, Dakhni, Nur Bagla, Latamber, Kohat and Samandar.
OGDC’s net profits slumped 19.8% from 18.26 billion rupees (US$174 million) to 14.362 billion rupees (US$137 million).