Domestic hydrocarbon production increases as RLNG supply disruptions boost reliance on local oil and gas fields.
KARACHI, August 7, 2026: Pakistan’s exploration and production (E&P) sector recorded one new gas discovery during July 2026, while oil and natural gas production increased on a year-on-year basis amid continued disruptions in the supply of re-gasified liquefied natural gas (RLNG), according to a report released by Topline Securities Limited.
The brokerage said exploration activity remained subdued during the month, with companies focusing more on developing existing hydrocarbon fields than pursuing new exploration projects.
Exploration Activity Slows
According to the report, exploratory well drilling declined by 44% month-on-month (MoM) during July 2026, reflecting a slowdown in exploration efforts.
In contrast, development drilling increased significantly, rising 3.4 times compared with the previous month, indicating that E&P companies prioritised expanding production from existing discoveries.
Seismic activity also weakened considerably during the month. No 2D seismic acquisition was carried out, while 3D seismic acquisition fell by 86% MoM, highlighting reduced exploration-related field operations.
One New Gas Discovery
Despite the slowdown in exploration activity, the sector recorded one gas discovery during July.
The discovery, Rahi X-1, was made by Pakistan Petroleum Limited (PPL), adding to Pakistan’s domestic natural gas resource base.
The report also noted that no dry wells were reported during the month, suggesting that completed drilling activities either resulted in a discovery or remain under evaluation.
Oil and Gas Production Improves
Pakistan’s hydrocarbon sector recorded strong annual production growth during July 2026.
According to Topline Securities:
• Oil production increased by 22% year-on-year (YoY).
• Natural gas production rose by 10% YoY.
The increase was largely attributed to greater reliance on domestic hydrocarbon production as disruptions in imported RLNG supplies continued.
Monthly Output Moderates
Despite the strong annual performance, production declined on a month-on-month basis.
The report showed:
• Oil production decreased by 4% MoM.
• Natural gas production fell by 2% MoM.
The monthly decline suggests temporary operational or field-related challenges, even as overall production remained higher than a year earlier.
Greater Reliance on Domestic Energy
Topline Securities said the latest trends underscore Pakistan’s increasing dependence on domestic oil and gas production to help offset constraints in imported RLNG supplies.
While higher output from existing fields has helped support energy availability, the continued slowdown in exploration activity highlights the need for sustained investment in exploration to replenish reserves and strengthen the country’s long-term energy security.