Abdul Rasheed, research analyst from Jahangir Siddiqui Capital Markets. said that OGDC's oil production increased by 23 percent, to 37,000 bpd during 1HFY05. December 2004 oil production even increased by higher rate at 32 percent, to 40,000 bpd, compared to same month of last year.
These numbers are adjusted for company's holding in operating and non-operating fields. Besides an additional 6,000 bpd oil production from company's two new fields (Chanda & Bobi which started production from start of this fiscal year). OGDC's existing fields are also operating at record rate.
Sono, which is 100 percent operated field, is currently operating at 2,000 bpd compared to average oil production of only 550 bpd during FY04. This increase in production was due to recently completed work in the field. Pasakhi, which is also wholly owned by OGDC, is currently operating at 4,800 bpd, compared to 2,300 bpd during FY05.
OGDC replaced BP as largest oil producer of country in FY04. During December 2004, OGDC also replaced PPL as largest domestic gas producer. OGDC's gas production during 1HFY05 was 885 mmcfd versus 717 mmcfd during 1HFY04, a 23 percent rise.
The record growth in OGDC gas production was due to higher production from its two major gas fields, Qadirpur and Uch.
The Company's gas production during December 2004 was 1,000 mmcfd, which was 28 percent higher compared to similar period last year. Production from Qadirpur field remained at 545 mmcfd during the month, due to higher gas demand in winter season whereas Uch field was also operating well above its historical level due to higher demand by Uch power plant.
"We expect gas production of Qadirpur and Uch fields to remain above 500 mmcfd and 200 mmcfd, respectively, during 2HFY05," Rasheed said.
OGDC has successfully drilled three additional wells in Qadirpur field. It is not yet clear whether the company will utilise additional production from there to offset natural production loss or to enhance gas supply immediately.
During 1HFY05 PPL oil production declined by 11 percent, to 250 bpd. This will not have any significant impact on company's performance, since only 2 percent of company's revenue is from oil sales.
Gas production of the company, however, increased by 9 percent, to 960 mmcfd, due to 100 mmcfd additional production (adjusted for PPL's 21 percent stake) from Sawan field. Recent disruption in gas supply from Sui field may have a minor impact on the company's gas production volume for 2HFY05.
POL's oil and gas production declined by 11 percent, and 10 percent, respectively, during 1HFY05 due to shutdown of company's major oil field (Turkwal) and natural decline in most of company's gas fields. Turkwal field has resumed supply of additional 700 bpd after recent work over. Gurguri field will enhance company's gas production by up to 39 percent in 2HFY05.