PPL plans $40mn deep drilling at Sui: report

Pakistan Petroleum Limited (PPL), a major E&P firm in Pakistan, is set to initiate a deep drilling project at its Sui gas field, according to a recent report by Arif Habib Limited. The project, which is scheduled for fiscal year 2027-28, involves drilling a well reaching 6,000 meters in depth with an initial gas target of 2 trillion cubic feet (TCF).

The company anticipates significant exploration efforts to counteract the natural depletion rate of around 8-9% annually in its mature fields. The ambitious project is projected to cost between $35-40 million, given the high temperature and pressure conditions encountered at such depths.

PPL's production forecast for the fiscal year 2027 stands at approximately 680 million cubic feet of gas equivalent per day (MMscfde), marking a modest increase from 649 MMscfde in the previous fiscal year. The company attributes this growth to discoveries at various fields within the Kirthar Block, including Baragzai in Nashpa, Latif-25, Makori East, Tolanj West, and Rehman-9. Together, these discoveries are expected to contribute around 17 million cubic feet of daily production, bolstering PPL's overall output.

To accommodate the growing demand, the company is also advancing crucial infrastructure projects. The Zafir gas processing plant, scheduled to commence operations in December 2026, will initially produce around 20MMscfd and expand to 40MMscfd in the subsequent phase. PPL holds a 65% working interest in this project. Additionally, the construction of the Pateji gas processing plant in Sujawal, set to be completed by June 2027, is expected to contribute approximately 16MMscfd of sales gas and generate around Rs8 billion in revenue.