PPL Announces Significant Production Enhancements

PPL Announces Significant Production Enhancements

Karachi, April 20, 2024 – Pakistan Petroleum Limited (PPL) disclosed an encouraging update on Monday regarding a substantial enhancement in its hydrocarbon production over the past six months, spanning from October 2023 to March 2024.

This strategic development marks a significant contribution towards reinforcing Pakistan’s energy infrastructure and stability.

Amidst growing concerns over the aging of its primary production fields, PPL has successfully implemented a series of innovative production enhancement techniques. These efforts are designed to counteract the natural decline in output from these maturing fields and to bolster the nation’s energy reserves.

According to PPL’s latest report, the company has managed to achieve a noteworthy increase in production, adding approximately 17 million standard cubic feet per day (MMscfd) of gas and 530 barrels per day of oil and condensate. This improvement has been realized through several key interventions, which are both cost-effective and technologically advanced, compared to the conventional approach of drilling new wells.

Highlighting the major milestones achieved in this period, PPL outlined the following:

1. Artificial Lift System: The installation of this system at Adhi South X-1 and Adhi South-5 has significantly boosted production, adding around 450 barrels per day of oil and condensate.

2. Acid Stimulation and Wellbore Clean-out: This technique was applied at the Fazl X-1 in the Hala Block and at Adhi-19, enhancing gas production by approximately 5 MMscfd. The process involved removing scale build-up which impeded flow within the tubing and across the reservoir.

3. Surface De-Bottlenecking: At the venerable Sui Gas Field, around 7 MMscfd of gas production was added through meticulous optimization of the GGM network, wellhead surface fittings, and a refined chemical inhibition strategy.

4. Optimization through Optimum Gas Blending: The newly commissioned Shahpur Chakar North X-1 well facilitated an increase of about 5 MMscfd of gas and 80 barrels per day of condensate. This was achieved by optimally blending high and low-quality gases at the Gambat South processing facilities.

These enhancements not only underscore PPL’s commitment to leveraging advanced technological solutions for production optimization but also play a crucial role in reducing the national energy demand-supply gap. Such measures are particularly vital as they also contribute to significant savings in foreign exchange by curbing the need to import expensive hydrocarbon fuels.

The production increase detailed by PPL is part of a broader effort to ensure a secure and self-sufficient energy future for Pakistan. By focusing on maximizing domestic hydrocarbon production through state-of-the-art techniques and rigorous technical analysis, PPL is setting a benchmark in the industry for cost-efficiency and innovation.

This report complies with Section 96 of the Securities Act, 2015, and Clause 5.6.1 (a) of the Pakistan Stock Exchange Regulations, ensuring that stakeholders are well-informed of these advancements.

As Pakistan continues to navigate the challenges of energy production and management, the achievements of PPL highlight the potential for indigenous resources to meet the nation’s needs sustainably and economically.