Tawanai

Merril Lynch issues regular updates on the macroeconomic conditions in the country. Here is what they wrote about the oil and gas industry situation in the December 24th update.

Drilling activity is slow to pick up in 1HFY09. Only four exploration and two development wells were drilled up to November, according to PPIS, relative to the full-year target of 40 and 50 wells, respectively. The full-year drilling target is likely to be revised down.

Relative to its peers, production surprises are limited for PPL. The expected production growth of 2-3% in
FY09 depends on completion of phase II expansion phase on Tal block.

Gas, Investment, Oil, Pakistan