Pakistan Petroleum Limited (PPL) plans to invest up to $40 million in deep exploratory drilling at the Sui gas field during fiscal year 2027-28, targeting an initial 2 trillion cubic feet (TCF) of gas.
The project is part of the company’s efforts to expand exploration and offset declining production from its mature gas fields. According to an analyst briefing cited in a report by Arif Habib Limited (AHL), PPL plans to drill a 6,000-metre exploratory well at Sui, with estimated capital expenditure of $35 million to $40 million.
The project faces technical challenges due to high-temperature and high-pressure conditions.
PPL expects its production to increase to around 680 million cubic feet of gas equivalent per day (MMscfde) in FY27, compared with 649 MMscfde in FY26.
The company expects to add approximately 33 MMscfde of production during FY27, mainly 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 around 17 million cubic feet per day.
The exploration drive comes as PPL’s mature fields face natural production declines of approximately 8% to 9% annually, increasing the need for new discoveries and development projects. PPL is also working on infrastructure projects to bring additional gas into the supply network.
The Zafir gas processing plant is expected to begin operations in December 2026, initially supplying around 20 million cubic feet per day of sales gas. Its capacity is expected to increase to 40 million cubic feet per day in the second phase. PPL holds a 65% working interest in the project.
Meanwhile, 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.
