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 to search for new gas reserves and offset declining production from older fields.

According to an analyst briefing reported by Arif Habib Limited (AHL) on Wednesday, the company plans to drill a 6,000-metre exploratory well at Sui, with an estimated cost of $35 million to $40 million.

The project aims to initially target around 2 trillion cubic feet (TCF) of gas. However, the drilling will involve technical challenges due to high temperatures and pressure at the targeted depth.

PPL Expects Production to Increase in FY27

PPL expects its daily production to reach approximately 680 million cubic feet of gas equivalent (MMscfde) in FY27, compared with 649 MMscfde in FY26.

The company expects to add around 33 MMscfde of production during FY27 through new discoveries and development projects.

These include Baragzai in Nashpa, Latif-25, Makori East, Tolanj West, and Rehman-9 in the Kirthar Block. Development work at these fields is expected to contribute around 17 million cubic feet per day.

The exploration push comes as PPL’s mature gas fields experience annual natural production declines of around 8 to 9 percent, making new discoveries increasingly important to maintaining output.

Two New Gas Plants to Add Supply

PPL is also working on new gas processing facilities to increase supplies.

The Zafir gas processing plant is expected to start operations in December 2026, initially supplying around 20 million cubic feet of sales gas per day. Its capacity is expected to increase to 40 million cubic feet per day in the second phase. PPL holds a 65 percent working interest in the project.

Meanwhile, construction of the Pateji gas processing plant in Sujawal is underway, with operations expected to begin by June 2027.

The facility is expected to add around 16 million cubic feet of sales gas per day and generate approximately Rs. 8 billion in revenue.