An insight into Indigenous oil resources

An insight into Indigenous oil resources

Engineering Post Report

Pakistan, most unfortunately, manly depends upon oil and gas resources to fulflll  its energy requirements adequately and appropriately to fully meet the increasing demand for developmental activities through urban and rural areas all over the country.

The domestic production of  crude oil had remained 24.6 million barrels  during July 2018-March 2019 as compared to 21.8 million barrels during the corresponding   period previous financial year, according to facts and figures available from official sources.

Country’s indigenous oil resources are not enough to quench thirst of a growing ad developing national economy. Resultantly Pakistan relies heavily , to the extent of over 80 per cent,  on import of large quantity of  oil as well as  oil based products from Middle Eastern countries especially from Saudi Arabia.

During July-March Financial Year2018- 19 , the quantity of crude oil  imported remained  6.6 million tons  with value of US $ 3.4 billion compared to the quantity of  7.8 million tons valued at US $ 2.9  billion during the same period last year indicating rapid increasing in oil consumption in the country. The decline was mainly  due to increase in oil prices  in the international market.

Import of oil on deferred payment from Saudi Arabia is greatly helping the federal government  in terms of balance of payments .

Transport and power sectors continue to be the main major users of oil. During July-March FY 2019, share of oil  consumption  in transport sector sharply increased to as much 77 per cent from 56 per cent during the same period last year while  share of pol consumption  in power sector  had somehow decreased  during July-March FY 2019  which was 25 per cent during the same period last year.

Gas being the cheaper sources, mainly there is continuous shift of power sector from oil to gas.

The indigenous and and imported crude oil is refined by six major and two small refineries in the country.

Efforts are also being made continuously  for effecting improvement in the existing refineries as well as  attracting more and more foreign investment from friendly and other  countries.

Byco Oil Pakistan Limited (Byco)  has established an Oil Refinery at Hub, Balochistan,  with refinery capacity of 120,000 barrels per day  ( 5 million tons per annum)  at a cost of US $ 400 million . Byco has also installed Single  Buoy Mooring ( SBM)  facilities  for transportation of  imported Crude Oil and petroleum products  from ships to the storage tanks. The capacity of this facility is 12 million tons per annum.

Attock Refinery Limited (ARL)  has started producing  Euro-11  (0.05 per cent Sulphur  HSD) . Further, the refinery has also  installed isomerization  plant and enhanced the production of Motor Gasoline also.

Pakistan  Refinery Limited (PRL)  had also installed  isomerization plant In 2016  and since then  has doubled itsa  production of Motor Gasoline.

Pak-Arab Refinery Limited (PARCO) is also implementing  PARCO Coastal Refinery project at Khalifa Point near Hub, Balochistan which is a state of the art  refinery  having capacity of 250,000 barrels per day (over 11 million tons per annum). Its estimated cost is US $ 5  billlion.

In terms of energy-mix, Pakistan  reliance on  oil had reached 43.5 per cent in FY 1998 and FY 2001. For the FY 2018, oil reliance was reduced to31.2 per cent. Similrly,  hydro had a 13.1 per cent  share in FY 1998 which was standing at 7.7 per cent in 2017-18.

Though the declining share of oil  is a welcoming sign due to its lesser burden  on the national exchequer, the diminishing  share of hydro represents the shortsightedness  of the policy makers as well as the inability of the successive  governments to  undertake  such capital-intensive projects in a timely manners.