MOL Pakistan Oil and Gas Company has confirmed that production from wells was temporarily halted due to remote access following an armed attack. However, the company assures that all installations are safe.
The attack took place on Tuesday at the Manzalai-08 and Manzalai-10 well sites in Hangu District, operated by MOL Pakistan Oil and Gas Company, a subsidiary of Hungarian company MOL. Tragically, six personnel lost their lives in the incident.
Both wells were shut down from the Central Control Room to prevent damage from the explosion. As a result, gas production was reduced by approximately four (4) MMscfd, and oil production decreased by twenty-four (24) barrels per day, according to the company’s stock filing.
MOL Pakistan emphasizes that all facilities and field installations remain secure and hydrocarbon production from other wells functions normally.
The company confirmed that no MOL employees were at the attack site after the incident.
Fahad Rauf, the head of research at Ismail Iqbal Securities, highlighted various factors contributing to the decline in oil and gas production in Pakistan. These factors include a lack of significant discoveries, security concerns, escalating debt issues, and a shortage of local technical expertise.
Statistics show that 2022 oil production in Pakistan was 18% lower than in 2019, while gas production witnessed a 14% decline during the same period.
Rauf explained that the security situation prevents exploration activities in areas near the Afghan border. Although foreign investment and exploration increased in the Waziristan district, the situation deteriorated following the United States’ withdrawal from Afghanistan.
With the departure of foreign firms, Rauf emphasized that Pakistan lacks the expertise and funds required to exploit unconventional reserves, despite having one of the world’s largest shale reserves.
