KP government sets ambitious target to quadruple crude production

KARACHI: The provincial government of Khyber Pakhtunkhwa in Pakistan has launched ambitious plans to quadruple production of crude oil in the region.
Zahid Ullah Shinwari, director of Khyber Pakhtunkhwa Oil and Gas Company (KPOGC), on Friday said a target had been set of 200,000 barrels per day (BPD) by 2025, along with 2,000 million cubic feet per day (MMCFD) of gas.
KP currently produces about 50,000 BPD of crude, more than a half of the country’s total production of about 91,000 BPD. The province has proven reserves of 1.1 billion barrels of oil and 16 trillion cubic feet of gas, according to KPOGCL. Recent discoveries have further brightened the prospects of achieving record oil- and gas-production targets.
“Reserves have been discovered in the exploratory Baratai block well that is situated near Kohat and where KPOGCL is quite active,” said Shinwari. “The well has tested about 700 BPD of oil and 30 MMCFD of gas. Similarly, about 20 wells are also planned in other parts of the province as well, where work is expected to start within the next two years.”
Shortly before leaving office, the outgoing chief minister of KP, Pervez Khattak, opened up six blocks that had remained inactive for the past 10 years: Marwat, Kohat, Goragulto, Wali, Latamber and Paharpur.
The Oil and Gas Development Company Limited (OGDCL) also plans to conduct a seismic survey in the Wali Block, covering South Waziristan Agency, Lakki Marwat and FR Tank. In addition, other companies have completed initial work in KP, including seismic surveys and geological mapping of different exploration blocks.
“Although the target is ambitious, the KP government can achieve it — or, at least, enhance its current production levels — due to the current pace of activities and recent developments in this area in the province,” said Nauman Khan, head of research at equities and investment firm Foundation Securities. “It is a long and tedious task that usually requires several years and consistent policies.”
Already the leading oil producer in the country, the province also aims to increase its gas production.
“We will soon surpass Sindh and Baluchistan in terms of gas production since we have made some promising discoveries in Karak and Tal Blocks,” said Shinwari.
KPOGCL also plans to increase the production of liquefied petroleum gas from the current 1,845 tons per day to 2,800 by 2025.
According to the United States Energy Information Administration, Pakistan could have more than 9 billion barrels of petroleum oil and 105 trillion cubic feet of shale oil and natural-gas reserves.
The annual consumption of petroleum products in the country was about 26 million tons during the financial year 2016-17. Indigenous crude oil meets only 15 percent of this requirement, with the rest imported as crude and petroleum products. The country has six major and two small refineries that process both indigenous and imported crude.