KARACHI: Oil and gas production in Pakistan posted a marginal increase in the third quarter of fiscal year 2025-26, supported by reduced curtailments at key fields and stronger offtake from the power sector.
Oil output rose 0.9 per cent year-on-year (YoY), while gas production increased 0.6 per cent YoY during 3QFY26.Among major oil-producing assets, the TAL block led growth with a 15.7 per cent YoY increase, followed by the KPD block (14.5 per cent YoY) and Nashpa (2.6 per cent YoY). Dhok Sultan recorded a sharp 42 per cent YoY rise, though output from the Bettani and Sono fields fell significantly by 63.9 per cent and 53.2 per cent YoY, respectively.
On the gas side, production gains were recorded at several key fields, including Mari (up 7.2 per cent YoY), Uch (3.7 per cent YoY), Kandhkot (8.6 per cent YoY), Nashpa (13 per cent YoY) and the TAL block (10.3 per cent YoY). However, output from Sui and Qadirpur declined by 6.5 per cent and 9.5 per cent YoY, respectively.
Analysts attributed the overall increase in hydrocarbon output to lower curtailments and improved demand from the power sector.So far in calendar year 2026, listed exploration and production (E&P) companies have reported 11 discoveries. Among these, Baragzai stands out as the most significant, with an estimated incremental contribution of around 13,534 barrels of oil per day (bopd) and 147 million cubic feet per day (mmcfd) of gas.
Oil and Gas Development Company (OGDC) led in discoveries, followed by Pakistan Petroleum Limited (PPL) and Mari Energies Limited.Cumulatively, oil production stood at 63,982 bopd and gas output at 2,958 mmcfd, with new discoveries contributing approximately 21 per cent to oil production and 4 per cent to gas output.
According to Arif Habib Limited, OGDC is expected to post earnings of Rs42.12 billion (EPS: Rs9.79) in 3QFY26, down 11 per cent YoY. Net sales are projected to rise 17 per cent YoY, driven by modest increases in oil (up 1 per cent YoY) and gas (up 3.0 per cent YoY) production.
The decline in profitability is primarily attributed to a 21 per cent YoY fall in other income, reflecting lower finance income amid a declining interest rate environment. This impact is partially offset by the unwinding of term finance certificate losses.
PPL is likely to report a net profit of Rs23.09 billion (EPS: Rs8.49) in 3QFY26, up 3 per cent YoY, supported by higher production, with oil output rising 7 per cent YoY. Net sales are expected to grow 4 per cent YoY, while other income may decline sharply by 55 per cent YoY to Rs2.5 billion due to lower interest rates.
Mari Energies Limited is projected to post earnings of Rs13.66 billion (EPS: Rs11.37), marking a 14 per cent YoY decline. The drop is mainly attributed to a higher effective tax rate and increased operating expenses. Production from the Mari field rose 7.2 per cent YoY, while output from Shewa increased significantly to 56 mmcfd.
Pakistan Oilfields Limited is expected to report a profit of Rs6.28 billion (EPS: Rs22.11), down 5.0 per cent YoY, primarily due to a higher tax rate. Gas production is projected to increase 16 per cent YoY, while oil output declined 9.0 per cent YoY. Net sales are expected to grow 7.0 per cent YoY, supported by higher gas production.
