Latest News

KARACHI: Oil and gas production in Pakistan posted a marginal increase in the third quarter of fiscal year 2025-26, supported by reduced curtailments at key fields and stronger offtake from the power sector. Oil output rose 0.9 per cent year-on-year (YoY), while gas production increased 0.6 per cent YoY during 3QFY26.Among major oil-producing assets, the TAL block led growth with a 15.7 per cent YoY increase, followed by the KPD block (14.5 per cent YoY) and Nashpa (2.6 per cent YoY). Dhok Sultan recorded a sharp 42 per cent YoY rise, though output from the Bettani and Sono fields fell significantly by 63.9 per cent and 53.2 per cent YoY, respectively. On the gas side, production gains were recorded at several key fields, including Mari (up 7.2 per cent YoY), Uch (3.7 per cent YoY), Kandhkot (8.6 per cent YoY), Nashpa (13 per cent YoY) and the TAL block (10.3 per cent YoY). However, output from Sui and Qadirpur declined by 6.5 per cent and 9.5 per cent YoY, respectively. Analysts attributed the overall increase in hydrocarbon output to lower curtailments and improved demand from the power sector.So far in calendar year 2026, listed exploration and production (E&P) companies have reported 11 discoveries. Among these, Baragzai stands out as the most significant, with an estimated incremental contribution of around 13,534 barrels of oil per day (bopd) and 147 million cubic feet per day (mmcfd) of gas. Oil and Gas Development Company (OGDC) led in discoveries, followed by Pakistan Petroleum Limited (PPL) and Mari Energies Limited.Cumulatively, oil production stood at 63,982 bopd and gas output at 2,958 mmcfd, with new discoveries contributing approximately 21 per cent to oil production and 4 per cent to gas output. According to Arif Habib Limited, OGDC is expected to post earnings of Rs42.12 billion (EPS: Rs9.79) in 3QFY26, down 11 per cent YoY. Net sales are projected to rise 17 per cent YoY, driven by modest increases in oil (up 1 per cent YoY) and gas (up 3.0 per cent YoY) production. The decline in profitability is primarily attributed to a 21 per cent YoY fall in other income, reflecting lower finance income amid a declining interest rate environment. This impact is partially offset by the unwinding of term finance certificate losses. PPL is likely to report a net profit of Rs23.09 billion (EPS: Rs8.49) in 3QFY26, up 3 per cent YoY, supported by higher production, with oil output rising 7 per cent YoY. Net sales are expected to grow 4 per cent YoY, while other income may decline sharply by 55 per cent YoY to Rs2.5 billion due to lower interest rates. Mari Energies Limited is projected to post earnings of Rs13.66 billion (EPS: Rs11.37), marking a 14 per cent YoY decline. The drop is mainly attributed to a higher effective tax rate and increased operating expenses. Production from the Mari field rose 7.2 per cent YoY, while output from Shewa increased significantly to 56 mmcfd. Pakistan Oilfields Limited is expected to report a profit of Rs6.28 billion (EPS: Rs22.11), down 5.0 per cent YoY, primarily due to a higher tax rate. Gas production is projected to increase 16 per cent YoY, while oil output declined 9.0 per cent YoY. Net sales are expected to grow 7.0 per cent YoY, supported by higher gas production.

ISLAMABAD: Pakistan’s energy sector is facing a fragile transition, marked by declining domestic production, rising import dependence, and uneven supply growth, according to the Pakistan Energy Yearbook 2024–25 released by the Petroleum Division and Hydrocarbon Development Institute of Pakistan. Indigenous energy production fell from 53 MTOE to 50 MTOE, while imports increased from 33 MTOE to 34 MTOE, highlighting growing reliance on external sources. Total primary energy supply rose only slightly by 1.58% to 82 MTOE, mainly due to imports of LPG, oil, coal, and electricity. LPG (+28.56%), imported electricity (+20.11%), oil (+14.51%), coal (+6.32%), and hydropower (+1.21%) increased, while natural gas, LNG (–4.1%), nuclear, and renewables declined, signalling tightening domestic availability. Final energy consumption grew 8.32%, led by commercial (+23.38%), industrial (+16.78%), transport (+9.44%), and government (+14.79%) sectors, reflecting economic recovery, though agricultural use fell 30.97% and domestic use declined slightly, raising rural access concerns. Crude oil production dropped 11.44% and gas output declined 7.52% due to ageing fields and limited drilling—only 28 exploratory and 30 development wells were completed. Despite 21 new gas and gas-condensate fields and a 26% increase in gas reserves to 23.31 TCF, production did not rise, highlighting extraction limitations. Proven oil reserves declined 1.39% to 240 million barrels. To offset shortages, petroleum imports rose—refined products +16.61%, crude oil +19.44%—supporting refinery activity. Gas imports of 8.74 MTOE filled gaps, yet overall gas consumption fell 5.77%, with industrial consumption rising 62.5% while other sectors declined, indicating prioritisation of high-value use. Coal imports surged 27.86%, compensating for a 2.66% drop in domestic output, with over half used for power generation. Power sector progress remained gradual: installed capacity increased slightly to 45,380 MW with 884 MW of new hydropower, but renewables stagnated. Electricity generation rose 3.04% to 140,420 GWh, mainly from thermal sources, with imports up 20.1%. Consumption increased in domestic (+4.6%), commercial (+5.7%), and industrial (+4.9%) sectors, while agriculture fell 31.4%, highlighting uneven distribution. Overall, Pakistan’s energy system faces rising demand amid declining domestic supply, increasing reliance on imports, stagnating renewables, and a widening gap between growing gas reserves and extraction capacity, posing risks to long-term sustainability.

Pakistan Petroleum Limited’s (PPL) board has approved an extension in the tenure of its Chief Executive Officer (CEO), Mohammad Khalid Rehman, on an interim basis, ensuring continuity in leadership until a permanent appointment is made. “We would like to inform that the board of directors of the company at its meeting held on 7th April 2026 has approved extension in the term of appointment of Mohammad Khalid Rehman as the CEO/ Managing Director of the company with effect from 10th April 2026, until the appointment of a regular CEO of the company,” PPL informed in a notice to the Pakistan Stock Exchange (PSX) on Tuesday. Earlier in January, Rehman was appointed in the place of Sikandar Ali Memon “for a period of three months or appointment of a regular CEO of the Company, whichever is earlier”. A seasoned professional with more than 30 years of national and international experience, Rehman started his career with PPL in 2009 as Chief Accountant. During the last 27 years, he has held various senior positions, including Manager Treasury Operations, Senior Manager Finance and Senior Manager Corporate Planning, before assuming the charge as Chief Financial Officer in 2022. Before joining PPL, Rehman was associated with several reputable organisations, including Ernst & Young, Ford Rhodes Sidat Hyder, Umer Group of Companies, ORIX Leasing Pakistan Limited, State Street Fund Services Toronto, Inc., and Bank of Montreal, gaining rich experience in Pakistan, Canada and Egypt. Rehman is a fellow member of the Institute of Chartered Accountants of Pakistan, a CPA from The Institute of Chartered Accountants of Ontario, Canada, as well as an associate member of the Institute of Cost and Management Accountants of Pakistan. As one of the largest exploration and production companies in Pakistan, PPL plays a pivotal role in exploring, prospecting, developing, and producing oil and natural gas resources.

The inauguration ceremony was held at MariEnergies’ Head Office in Islamabad, with the field team joining virtually. The Hon’ble Federal Minister for Petroleum, Mr. Ali Pervaiz Malik, graced the occasion as the Chief Guest. In his remarks, he appreciated MariEnergies’ strong performance and contributions to the country’s energy sector. He also paid tribute to the ultimate sacrifices of the martyrs who laid down their lives during the journey of developing the Waziristan Block. We were also pleased to host the leadership of our JV partners and other key stakeholders. Spinwam-1 marks a significant milestone, with multiple gas and condensate discoveries across key formations, demonstrating strong production potential. Initial gas supply to SNGPL stands at approximately 40 MMSCFD, along with 200 BBL/day of condensate. This brings the total production from the Waziristan Block (Shewa and Spinwam) to around 100 MMSCFD of gas and 800 BBL/day of condensate. This achievement underscores MariEnergies’ commitment to unlocking indigenous resources, strengthening energy security, and reducing reliance on imports. A step forward in powering Pakistan’s future.

Oil and Gas Development Company Limited (OGDCL) announced on Wednesday the commencement of gas and condensate production from Spinwam-1 discovery located in Waziristan Block in Khyber Pakhtunkhwa under the Extended Well Testing (EWT) phase. The inauguration ceremony, held at the Mari Energies Head Office, was graced by Federal Minister for Petroleum, Mr. Ali Pervaiz Malik. Managing Director & CEO of Mari Energies Faheem Haider also attended the ceremony. Meanwhile, OGDCL, one of the country’s largest E&P companies, disclosed via a notice to the Pakistan Stock Exchange (PSX) that the well was completed in Lockhart reservoir. It said that the current gas production rate from the well was ~40 MMscfd, and ~ 200 BBL/D of condensate. It added that with the induction of this gas, the early production facilities established at Shewa will be operated at full capacity, with total production from both Shewa and Spinwam wells will be around 100 MMscfd gas and ~800 BBL/D of condensate. READ MORE: OGDCL makes significant oil and gas discovery in Khyber Pakhtunkhwa “The joint venture comprises Oil & Gas Development Company Limited (35% working interest), Mari Energies Limited (the Operator of Waziristan Block) (55%), and Orient Petroleum Inc. (10%) working interest, respectively,” the bourse was informed. Last month, OGDCL discovered further oil and gas reserves at its Baragzai X-01 (Slant) exploratory well in Kohat, Khyber Pakhtunkhwa.

Mari Energies Limited (MariEnergies), one of Pakistan’s largest E&P companies, said on Tuesday that it had signed multiple agreements with Fauji Fertilizer Company Limited, Engro Fertilizers Limited, and Fatima Fertilizer Company Limited. The company shared the information in a notice to the Pakistan Stock Exchange (PSX) today. MARI said that it had executed multiple project agreements for the Pressure Enhancement Facilities (PEF) at Daharki, Sindh. The PEF Project is a strategic initiative undertaken by MariEnergies in collaboration with the fertiliser plants owners and involves debottlenecking of the pipeline, procurement and installation of compression facilities at various junctions of the gas gathering pipeline network and related operations and maintenance. READ MORE: Mari Energies discovers gas in Sindh “PEF Project is aimed to maintain the minimum delivery pressure of Habib Rahi Limestone (HRL) reservoir gas, with a potential to extend the production plateau, ensuring consistent indigenous gas supplies to fertiliser plants, directly supporting the domestic urea production and contributing to national food security,” the bourse was informed. The company is an integrated oil and gas exploration and production company, and around 70% exploration success rate, which is much higher than industry averages of around 33% nationally and 14% internationally. MARI’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies, and refineries.

Mari Energies Limited (MariEnergies), one of Pakistan’s largest E&P companies, announced on Thursday the discovery of hydrocarbon from its exploratory well located in Sindh. The company shared the information in a notice to the Pakistan Stock Exchange (PSX) today. “MariEnergies is pleased to announce a gas & condensate discovery resulting from Shams-1 exploratory well, drilled in Mari D&PL, located in Ghotki district, Sindh. “Shams-1 well was spud-in on January 30, 2026, and successfully drilled down to the total depth of 3,075m,” the notice read, adding that the well targeted Lower Goru-B sands as exploratory targets. “During the testing, the well flowed at a rate of 47.98 MMSCFD gas with 64 barrels per day of condensate at a choke size of 64/64“,” read the notice. The stabilised Well Head Flowing Pressure (WHFP) of 2,404 psig was observed during the testing, the bourse was informed. The company is an integrated oil and gas exploration and production company, and around 70% exploration success rate, which is much higher than industry averages of around 33% nationally and 14% internationally. MARI’s key customers include fertiliser manufacturers, power generation companies, gas distribution companies, and refineries.

ISLAMABAD: Pakistan currently has crude oil reserves sufficient for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days and jet fuel (JP-1) for 14 days, the secretary petroleum informed the Senate Standing Committee on Petroleum on Monday amid growing concerns over supply disruptions caused by conflict in the Middle East. Briefing the committee, the official said Pakistan was in talks with Iran to secure permission for oil shipments to pass through the Strait of Hormuz. If permission is granted, four Pakistani vessels could transport oil cargoes through the route. He also warned that Pakistan could face a severe gas shortage after April 14 due to disrupted LNG cargo supplies. Meanwhile, the government has decided to provide a Rs23 billion subsidy for motorcycle and rickshaw owners using savings generated under its austerity policy. The Senate Standing Committee on Petroleum met under the chairmanship of Senator Manzoor Ahmed and was briefed on the regional situation and its impact on Pakistan's energy supplies. The secretary petroleum said nearly 70 per cent of Pakistan's petroleum products were imported from the Middle East. However, the ongoing conflict has affected shipping routes and supply chains. He told the committee that the price of high-speed diesel had risen from $88 to $187, while petrol prices had increased from $74 to $130. Normally, oil shipments from Arab countries reach Pakistan within four to five days, but cargoes routed through the Red Sea are now taking about 12 days. The official said the country currently had crude oil reserves for 11 days, diesel for 21 days, petrol for 27 days, LPG for nine days and JP-1 fuel for 14 days. The government was attempting to optimise the use of existing reserves, while temporary permission had also been granted to import oil below the Euro-5 quality standard. According to the secretary petroleum, crude oil prices stood at $72 per barrel before the war but rose to $88 on the second day of the conflict and have now climbed to $115 per barrel. Negotiations with Iran are continuing to allow oil shipments through the Strait of Hormuz, which could enable four Pakistani vessels to transport crude cargoes. The committee was also informed that gas supplies from Qatar had been completely suspended. Of the eight LNG cargoes expected in March, only two reached Pakistan, while six failed to arrive due to the war. Similarly, of the six cargoes expected in April, three may also fail to arrive. Under the current circumstances, officials warned that Pakistan could face a severe gas shortage after April 14. Gas authorities also briefed the committee on an emergency supply plan, saying overall gas supply was expected to fall from 683 mmcfd to 672 mmcfd. To manage shortages, the government is considering increasing gas supply for domestic consumers while reducing supply to the commercial sector, process industries and captive power plants. Officials added that Pakistan had an agreement with a company in Azerbaijan to import LNG if demand rises, although LNG from that source would be nearly three times more expensive. The secretary petroleum further told the committee that the government had decided to provide a Rs23 billion subsidy from savings generated under its austerity policy. The subsidy will be extended to around 30 million motorcycle and rickshaw owners and will be distributed to eligible beneficiaries using data from the Benazir Income Support Programme. Officials from the Oil and Gas Regulatory Authority (Ogra) and the petroleum division have begun working on the subsidy mechanism. They said savings from austerity measures would be used to finance the subsidy, similar to relief programmes introduced during the Covid-19 pandemic. Committee members questioned where the Rs23 billion subsidy would come from and asked what measures had generated the savings, urging that any financial benefit should go to the public rather than companies. Officials responded that various cost-saving measures had been implemented under the prime minister's directives. Govt monitoring petroleum stocks Separately, the government has decided to conduct a daily review of petroleum reserves to closely monitor the energy situation. A committee tasked with monitoring petrol prices was informed that Pakistan remained "adequately positioned in terms of fuel availability", with March requirements fully secured and supply coverage available up to mid-April under current cargo planning. According to a statement issued by the Ministry of Finance, the committee reviewed the national inventory of crude oil and refined petroleum products, import arrangements and supply chain logistics. Officials told the meeting that the country had "comfortable inventories of crude oil and key petroleum products for March, with sufficient planning in place to ensure continued availability during April". Efforts are also under way to extend coverage towards the end of April. The meeting, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, was part of the government's daily review of the energy sector amid tensions in the Middle East. During the session, procurement patterns and maritime logistics were also examined, with the committee stressing the need to diversify sources of petroleum imports to strengthen Pakistan's energy supply chain. Officials said procurement strategies were already shifting towards greater diversification to reduce reliance on any single supply corridor. Finance Minister Aurangzeb assured that the government remained "fully focused on ensuring uninterrupted availability of petroleum products across the country", adding that the "current stock position and supply outlook remain stable". He stressed that "there is no basis for panic buying or unnecessary stockpiling of fuel". Authorities, in coordination with Ogra and provincial governments, were directed to closely monitor market activity and stock levels to prevent hoarding. "It was emphasised that any attempts to create artificial shortages or disrupt normal supply would be dealt with strictly in accordance with the law," the statement said. Participants in the meeting included Petroleum Minister Ali Pervaiz Malik, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry, State Bank of Pakistan Governor Jameel Ahmad and other senior officials.