*KARACHI –* Pakistan’s oil and gas production plunged to its lowest levelin over two decades during the financial year 2024–25 (FY25), as surplusregasified liquefied natural gas (RLNG) in the system forced curtailment oflocal output, according to a report by Topline Securities released onFriday.
The country’s oil output dropped *12% year-on-year (YoY)* to anaverage of *62,400barrels per day (bpd)*, while gas production fell *8% YoY* to *2,886million cubic feet per day (mmcfd)*. The decline accelerated in theApril–June quarter (4QFY25), with oil output down *15% YoY* and gas down *10%YoY*, highlighting persistent pressure on the energy sector.*RLNG Surplus and Policy Impact*
The surplus of RLNG grew further after captive power users shifted from gasto the national electricity grid. The government’s imposition of an *off-gridlevy* at Rs791 per Metric Million British Thermal Unit (mmbtu) — raisingtotal captive gas cost to Rs4,291/mmbtu — made electricity generation ongas costlier than grid power.
Major oilfields saw steep declines:
–
*Makori East, Nashpa, Maramzai, Pasakhi, Mardankhel*: Down between 3% and 46% YoY. –
*Tal Block* (17% of national oil output): Down *22% YoY* in 4QFY25. –
*Maramzai*: Down 54% YoY. –
Read Top Stories
*Mardankhel*: Down 52% YoY.
In gas production, *Qadirpur* and *Nashpa* fields suffered 36% and 34% YoYdeclines respectively in 4QFY25, largely due to gas curtailment by Suicompanies.*Economic Strain*
The fall in domestic production is estimated to have cost Pakistan *overUSD 1.2 billion* in additional foreign exchange outflows during FY25, asthe country relied more heavily on expensive energy imports.*Outlook*
Topline Securities warns that production may drop further in FY26, with oilflows expected between *58,000–60,000 bpd* and gas between *2,750–2,850mmcfd*.However, the firm notes that the government could use upcoming talks withQatar in March 2026 to renegotiate RLNG prices, potentially creating spacefor higher local output.
Meanwhile, there is a glimmer of hope: in 2024, Pakistan discovered *351.2billion cubic feet (BCF)* of natural gas reserves in the *Shewa fields ofNorth Waziristan*, with an estimated lifespan of 17 years.