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Problems at Pindori gas field: POL production may fall

By Muhammad Yasir

KARACHI: The production of oil and gas at Pindori, the main field of Pakistan Oilfields Limited (POL) may fall further in the coming months, sources told Daily Times.

Pindori’s contribution in POL’s overall oil production has fallen to 31 percent in the last six months of the current year from 45 percent share in the corresponding months of the previous year, posting a decline of 16 percent. The field touched its peak production level of 9925 bpd of oil and 31 mmcfd gas in April 2006, but it could not produce more 5000 bpd oil and 15 mmcfd gas per day in April this year.

Similarly, the gas generation share of Pindori has declined to 12 percent from 21 percent a year earlier, registering a dip of nine percent. This sharp decline in both oil and gas output is because of the increased water cut in some producing wells of the field, sources added. The average monthly POL production stood at 158, 000 bpd while the gas generation retain at 1200 mmcfd. POL has adopted water injection technique to enhance its oil recovery. At the beginning of a field’s production life, primary recovery utilises the natural energy of the reservoir to cause hydrocarbon to flow into the well bore.

It is prudent mentioning here that POL earned 60 percent of its revenues from oil sales in the last year and this hefty production loss is a concerning factor that could hurt the future earnings of the company.

Faraz Farooq, an analyst at First Capital Equities Limited observed that as the field matures, the natural energy resources of the reservoir utilised in primary recovery starts depleting. In order to continue production, enhanced oil recovery is implemented whereby oil is recovered by means other than the natural pressure, he added.

For this purpose, water injection is the widely used method where water is injected back into the reservoir to increase pressure and thereby it stimulates the production.

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