Oil production from Pindori Fields down

LAHORE: The Pindori Fields oil production has slid below 900 barrel per day (bpd) to stand at 856bpd.

As per the latest Pakistan Petroleum Information Services data, the dip in the performance is on account of annual turnaround activity in field’s 2 wells and production is expected to recover back to sustainable levels of 1,200bpd in the coming 2 months. The lost production would reduce POLIs FY12 earning forecast.

However, on a broader perceptive the subdued impact on company’s earning reveals that it is reducing reliance on the Pindori field. The fields contribution to company’s topline have reduced from high of 46 percent in FY06 to a mere 7 percent in FY10.

Furthermore, in a worst case scenario of non-monetization of Pindori field’s reserve from FY12, it would reduce earnings projection by 5-6 percent. In another development, completion of Domail-II has been postponed by another month. Experts steps from a significant discovery size of Domail-I along with company’s successful operating history around Ikhlas region.

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