PPL to Invest $40 Million in Deep Drilling at Sui Gas Field

Pakistan Petroleum Limited (PPL) has announced plans to invest up to $40 million in deep exploratory drilling at its Sui gas field during fiscal year 2027-28, aiming to tap an initial 2 trillion cubic feet (TCF) of gas reserves. The move is part of the company's strategy to offset declining production from mature fields, according to an analyst briefing report by Arif Habib Limited (AHL).

The planned exploration well at Sui will be drilled to a depth of 6,000 meters, with estimated capital expenditure of $35 million to $40 million. The project is expected to face technical challenges due to high-temperature and high-pressure conditions at such depths.

PPL anticipates its production to rise to approximately 680 million cubic feet of gas equivalent per day (MMscfde) in FY27, compared with 649 MMscfde in FY26. The company expects to add around 33 MMscfde of incremental production during FY27, primarily through discoveries at Baragzai in Nashpa, Latif-25, Makori East, Tolanj West, and Rehman-9 in the Kirthar Block. Development activities at these fields are expected to contribute approximately 17 million cubic feet per day.

The exploration push comes as PPL's mature fields experience natural production declines of around 8 percent to 9 percent annually, increasing the need for new discoveries and development projects to sustain output.

In addition to drilling, PPL is advancing infrastructure projects to bring additional gas into the national supply system. The Zafir gas processing plant is expected to begin operations in December 2026, initially contributing around 20 million cubic feet per day of sales gas before increasing capacity to 40 million cubic feet per day in its second phase. PPL holds a 65 percent working interest in the project.

Another facility, the Pateji gas processing plant in Sujawal, is under construction and is expected to become operational by June 2027. The facility is expected to add approximately 16 million cubic feet per day of sales gas and generate around Rs. 8 billion in revenue.