Share this story!            

Wellhead prices up by 10-35% for 1HFY09

By Muhammad Yasir

KARACHI: The wellhead prices have broadly risen by 10-35 percent on the back of higher Arab Light Crude Oil and HSFO prices in the last 6 months.

Oil and Gas Regulatory Authority (OGRA) has issued new gas wellhead prices for the period 1HFY09 (Jul-Dec 2008) of 12 major gas producing fields out of 49, sources said Tuesday.

Well head gas prices in the country are fixed on half yearly basis in January and July every year, depending on the average Arab Light crude and HSFO prices during first six months of the preceding seven months period.

The Arab Light average during this period stood at $98.4/barrel versus $75.2/barrel in the last six months, depicting a massive growth of 36 percent. Similarly, HSFO prices also soared by 25 percent $500/tonne in the same period, it is learnt.

Wellhead price of Sui has been increased by 35 percent under this revision, as there is no cap on the wellhead pricing of this field.

Pakistan Petroleum Limited (PPL) with a 100 percent stake in Sui is the primary beneficiary of this revision. The field contributes round 64 percent in PPL’s total gas production.

In addition, wellhead price of Sawan (3rd biggest contributor to PPL’s gas production) has also risen to $4.17 per mmbtu, growth of 17 percent versus the previous level.

In this revision, wellhead prices of Pindori, Turkwal and Pariwali fields have increased by 17 percent to $4.48 per mmbtu from $3.83 per mmbtu previously.

In January, OGRA increased wellhead prices of the major gas-producing field by 0.3-14 percent on the back of higher Arab Light and High Speed Furnace Oil (HSFO) prices in previous year’s last 6 months of the preceding 7 months period.

The wellhead prices of 11 gas producing field were revised on the basis of pricing formula under their respective petroleum policies.

Wellhead prices of fields including Miano, Pirwali, Pindori, Sawan and Turkwal have been raised by 11.8 percent as the pricing formula of these fields have no cap on the gas wellhead pricing.

Home | Business

Share this story!