KARACHI, March 05, 2021: Pakistan oil reserves (excl. Aminah, Ayesha and Zainab fields) increased by 1 percent (or 9mn barrels) in last six months due to induction of eight new fields.
According to Topline, the increase is lower than the production of 13.5mn barrels during the same period. We have excluded Aminah, Ayesha and Zainab fields in reserves calculation as reserves of these three fields were initially recorded in Jun-2019 and now these have been revised down in Dec-2020.
Remaining oil reserves of the country have fallen from 271mn barrels in Jun-2019 to 266mn barrels in Dec-2020. Reserves of top producing fields (given in table) remained largely unchanged, however, eight new fields are added namely Mamikhel South, Baqa, Singhar, Togh, Saqib, Mari-Goru, Mari-Tipu, and Mangrio.
Pakistan gas reserves have increased by 2% YoY or ~1tcf mainly due to upward revision in reserves of MARI’s HRL and Mari Deep by 7% and 8%, respectively and induction of five new fields. The increase in reserves is higher than production of 0.64tcf during the same period.
That said, remaining gas reserves of the country have increased from 20.9tcf in Jun-2020 to 21.2tcf in Dec-2020. Five new fields that were added to production line are Baqa, Mangrio, Mamikhel South, Togh, and Umair.
In absolute terms, Mari’s (HRL+Deep) reserves have increased by 0.7tcf, which will add US$120mn (or Rs144/share) to company’s valuation based on EV/boe of US$1.3.
Mamikhel South, operated by MOL Pakistan (8.4%), and joint stake held by OGDC (27.8%), PPL (27.8%) and POL (21.1%) had reported flows of ~3,200 bpd and is expected to commence production over next couple of weeks. In Dec-2020, the field has reserves life of only 2.2 years, lower than average field life of 10-15 years.
Togh field, operated by OGDC (50%) and jointly held by MARI (33%) has reported reserves life of 0.4mn barrels that translates into life of 6 years.
