Pakistan Petroleum Limited (PPL) expects its average production to increase to around 680 million cubic feet per day (mmcfd) in FY27, supported by new discoveries, production enhancement initiatives, and the commissioning of gas processing facilities. The company shared its production outlook and investment plans during a corporate briefing on Wednesday, where it discussed its financial performance for FY26 and future prospects.
PPL's production increased to 649mmcfd in FY26 from 632mmcfd in the preceding fiscal year. Management attributed the improvement to lower back pressure from Sui Northern Gas Pipelines Limited (SNGPL) and the suspension of indigenous gas curtailment following regional geopolitical shifts.
Production enhancement initiatives contributed around 40mmcfd, offsetting natural reservoir depletion estimated at 8-9 per cent. For FY27, the company expects average production of approximately 680mmcfd, including oil output of 12,000 barrels per day, gas production of 480mmcfd, and LPG production of 290 tonnes per day.
However, the projected output will depend on the extent of gas curtailment. Around 33mmcfd of additional production is expected from the Baragzai, Latif, Makori East, Tolanj West, and Rehman fields.
The Zafir processing plant is expected to become operational by December 2026, initially contributing around 20mmcfd before gradually increasing its output to 40mmcfd. Similarly, the Sujawal gas processing facility, linked to the Pateji discovery, is expected to be commissioned by June 2027.
The facility is projected to add around 16mmcfd to production and generate approximately Rs8 billion in annual revenue. The Hatim gas processing facility is expected to be commissioned by June 2028.
PPL has planned capital expenditure of slightly less than Rs40 billion for FY27. Of this, Rs15-20 billion will be allocated to exploration activities, while around Rs10 billion will be spent on seismic surveys.
The company plans to drill 10 exploration and appraisal wells and six development wells during the fiscal year. Its seismic acquisition programme includes around 450 line kilometres of 2D surveys and 1,470 square kilometres of 3D surveys.
At the Sui gas field, management said modifications aimed at reducing suction pressure would begin within a few weeks to maximise recovery from existing reserves. The company also plans to drill Sui Deep-3 in 2028.
The high-pressure well will target a depth of approximately 6,000 metres and is estimated to contain around two trillion cubic feet (tcf) of gas in place. The proposed well could significantly extend the producing life of the Sui field, with its drilling cost estimated at $35-40 million.
Regarding the royalty rate, management clarified that it remains unchanged at 12.5 per cent, while trade debts stood at Rs623 billion at the end of June 2026.