Islamabad: The latest industry figures report a 6% year-over-year increase in oil reserves and a 2% rise in gas reserves, setting a positive tone for exploration and production activities. This update, drawn from the June 2024 data by the Petroleum Policy Information System (PPIS), highlights significant reserve growth in key fields and an overall boost in industry cash flows due to improved gas pricing policies.

According to AKD Securities Limited, the oil reserves in Pakistan have reached 1,304 million barrels, marking a 6% increase from the previous year, with notable growth in flagship fields such as KPD and Raijan. Gas reserves also showed a modest rise to 64.5 trillion cubic feet. The industry’s production life is currently estimated at 9.2 years for oil and 15.3 years for gas, assuming no additional reserve replacement, which reflects an annual decline rate of approximately 5% since 2019.

Significant contributors to this growth include OGDC, with its oil reserves up by 8.6% to 564 million barrels, driven largely by increases in the KPD Lease and Raijan fields. However, OGDC’s gas reserves saw a decrease of 3% year-over-year. Conversely, MARI reported a 9% increase in gas reserves, with major boosts from the Mari Ghazij and Shewa fields, and also noted increases in oil reserves led by the Bolan East and Shewa fields.

In contrast, PPL observed a decrease in both oil and gas reserves, with reductions noted in partner-operated fields. POL’s oil reserves remained steady, while a slight increase in gas reserves was attributed to assessments in the Pariwali field.

The report also highlights a resurgence in drilling activity, with a 26% increase in wells drilled over the previous fiscal year and several new discoveries. The industry’s reserve replacement ratio has turned positive, and the improved gas collection rates, supported by recent price rationalizations, are expected to further drive capital expenditures in the E and P sector.