PPL production rises 3% to 649 mmcfd as it adds 244 BCFE in reserves

Pakistan Petroleum Limited (PPL) reported average production of about 649 million cubic feet per day (mmcfd), up 3% year-on-year, supported by new wells and operational efficiencies despite gas curtailments, declining output from mature fields and security challenges.

The company shared the operational update at its annual general meeting, where shareholders reviewed its performance, exploration activities and future growth plans.

Reserves and exploration

PPL drilled 11 discoveries, including two in operated blocks and nine in non-operated blocks, adding about 244 billion cubic feet equivalent (BCFE) to its proved and probable (2P) reserves. Its reserve replacement ratio stood at approximately 102%, indicating that reserve additions exceeded the volume produced during the period.

The company also expanded its offshore exploration portfolio by securing eight blocks in Pakistan’s 2025 bidding round, including two as operator and six in partnership with other companies.

PPL signed a farm-out agreement with Turkish Petroleum Overseas Company for an offshore block to bring in international technical expertise. It is also continuing development activities at offshore Block 5 in Abu Dhabi through Pakistan International Oil Limited.

Beyond oil and gas, PPL is diversifying into minerals through a dedicated business unit, PPL Minerals. The company holds two copper and gold exploration licenses, one directly and the other through a subsidiary in which it has an approximately 50% stake.

Circular debt and receivables

On the energy sector’s circular debt, PPL management described the issue as industrywide and said the pace of accumulation had slowed. A working group has been formed with the government to address it.

Management also said the late payment surcharge receivable was almost equal to the outstanding principal amount, highlighting the scale of unpaid dues owed to the company.

Despite rising receivables, PPL continues supplying gas to Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited. Management said gas allocation is regulated by the Ministry of Energy and the company is required to comply with the prescribed allocation mechanism.

Head office move

The company also defended its decision to relocate its head office to Islamabad, describing it as a commercial decision aimed at improving proximity to the regulator and joint-venture partners.

Management said the costs of relocation were being weighed against expected benefits, including intangible advantages. The move affects only head office employees and does not involve operational staff, it added.

At the meeting, shareholders approved the reappointment of KPMG Taseer Hadi & Co. as the company’s auditors for fiscal 2027 at a fee of PKR 14.881 million, unchanged from the previous year.