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Oil marketing companies playing a pivotal role for economic growth

Registers favorable sales growth in 9 months of this fiscal
Licenses to 21 Oil Marketing Companies of Pakistan granted

Various oil companies have worked hard and established their names throughout the region, competing with each other for better growth, production, and to becoming one of the top petroleum and oil companies in Pakistan, for the country’s prosperous future.

Top 10 independent Petroleum & Oil Companies in Pakistan are playing a strategic role in the economic and social development of the country by providing huge employment in the different oil sector of the industry. The companies include, Shell Oil, Pakistan Petroleum, Attock Petroleum, Byco Petroleum, Total Parco, BHP Billiton Petroleum, Pakistan State Oil, Oil and Gas Development, Dewan Petroleum and Mari Gas Company.

Pakistan is one of the richest countries of the world in terms of natural resources and has been blessed with huge reserves of oil and gas.

Availability of such natural resources is necessary for the economic and social development and for this numerous oil and petroleum companies are working throughout Pakistan to bring out a positive relationship between the people and nature.

SHELL OIL PAKISTAN

First on my list of top oil and petroleum companies is definitely Shell Pakistan, a leading petroleum company that has successfully accomplished its 100 years in history and has established itself as a prosperous multinational company of Pakistan.

The company unifies and markets in different kinds of lubricating oils and has recently launched Shell Heliux Ultra, Shell Heliux CNG super, and re-established its quick oil change service to Shell Heliux Oil change plus.

PAKISTAN PETROLEUM LIMITED

Being pioneer of the natural gas industry in the country PPL has been a frontline player in the energy sector since the mid-1950s becoming a sure shot on any list of top oil and petroleum companies in Pakistan.

It is the major supplier of natural gas, besides producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas.

Pakistan Petroleum Limited (PPL) has received numerous awards in recognition of its contribution on various fronts most recent includes; Best Corporate Report Award — 2007- 2014, Corporate Philanthropy Award — 2004-2014, Occupational Safety, Health and Environment Best Practices Awards — 2012 and 2014 and Living the United Nations Global Compact Business Excellence Award —2014.

ATTOCK PETROLEUM LIMITED

APL is an oil marketing company in Pakistan granted a license, in February, 1998 and is wholly involved in exploration and production, refining and marketing of oil and gas. It has a network of petrol pumps in Khyber Pakhtunkhwa and Punjab.

APL is strengthening its presence in major urban areas such as Karachi, upper Punjab and Afghanistan.

For better controls and improved customer service at sites APL operates a quality assurance unit, for on-site testing of petroleum products.

BYCO PETROLEUM LIMITED PAKISTAN

Next on my list of top oil and petroleum companies, is this company that is a petroleum company based in Karachi, formerly known as Bosicor Petroleum Pakistan.

In 2012, it became Pakistan’s biggest refiner, followed by Pak-Arab Refinery and has its refineries located in Hub, Lasbela District of Balochistan.

TOTAL PARCO PAKISTAN LIMITED

As a part of the Pak-Arab refinery, in a relatively short time, Total Parco has emerged as the fastest growing oil and lubricant brand in Pakistan, and has set standards that remain unprecedented and admired both locally and globally.

PARCO is a joint venture between the Government of Pakistan and the Emirates of Abu Dhabi.

PARCO is a key player in Pakistan’s strategic oil supply and logistics. Its major business activities include Crude Oil Refining and Transportation, Storage and Marketing of POL Products. Thus it is an absolute on the top oil and petroleum companies list in Pakistan.

BHP BILLITON PETROLEUM PAKISTAN

BHP has been active in Pakistan since 1994, after a successful exploration review.

It now acts under different joint venture partnerships and operates the ZamZama production facility. Working with global hands, this company is also a must on the top oil companies in Pakistan’s list.

PAKISTAN STATE OIL

It is a Karachi-based Pakistani state-owned multinational petroleum corporation involved in marketing and distribution of petroleum products, being a definite on the top oil companies list.

It was founded on December 30, 1976, after Pakistan’s government took over the management of Pakistan National Oil (PNO) and Dawood Petroleum Limited and renamed into POCL (Premier Oil Company Limited) under marketing of Petroleum Products.

Based on its business performance, Pakistan State Oil (PSO) was listed among the world’s biggest publicly traded companies on Forbes 2000 list in fiscal year 2014.

OIL AND GAS DEVELOPMENT COMPANY PAKISTAN

OGDCL is a Pakistani multinational oil and gas company and accounts for one of the top companies in the oil and gas fields in the public sector. Established in 1961 by the Government of Pakistan, it was turned into a public listed company on 23 October 1997.

It is involved in exploring, drilling, refining and selling oil and gas in Pakistan. It is the market leader in terms of reserves, production and acreage.

DEWAN PETROLEUM PRIVATE LIMITED

DPL is a Pakistani exploration and production company operating in six exploration licenses and is developing and producing gas and associated condensate from its Salsabil gas field in Pakistan.

Very rapidly since starting operations in 2005, DPL has maintained a fast-track growth by making significant gas discoveries in Safedkoh Block and has managed the development of Salsabil Gas Field in record time.

DPL has active involvement in the exploration, development and production of petroleum to meet the growing energy needs of the country is making it one of the rapidly developing companies and assuming place on the top oil companies list.

MARI GAS COMPANY LIMITED

Mari Gas Field was originally owned by Pakistan Stanvac Petroleum Project, a joint venture formed in 1954 between Government of Pakistan and M/s Esso Eastern1 Incorporated, in 1983, M/s Esso Eastern transferring its entire share to Fauji Foundation.

A major development during 2014 was approval of five year extension in Mari lease period which meant that MPCL would enjoy the development and production rights in the Lease Area till 2019 enabling MPCL to enhance the recovery and produce more natural gas which is critically needed in the country.

Moving at very fast pace this company has engorged its name amongst several other top oil and petroleum companies of Pakistan.

OIL MARKETING SECTOR REGISTERS FAVORABLE SALES GROWTH

Oil marketing sector registers favourable sales growth. The oil-marketing sector registered a favourable growth during last 9 month of the financial year 2016-17 reflected in their rising profits.

During the period, PSO showed volumetric growth in Mogas of 11 percent in HSD of 12 percent, in JP-1 of 22 percent and in FO of 15 percent over same period last year.

LPG business showed a growth of 132 percent. CNG business grew by 15 percent. Lubricants sales volume grew by 25 percent, whereas LNG business grew by 107 percent over SPLY. Moreover, PSO continued to lead the liquid fuel market with an overall market share of 55.1 percent.

The market share of Black Oil rose to 72.7 percent from 69.5 percent SPLY, whereas the market share in White Oil stood at 44.6 percent against 45.9 percent.

The Board of Management (BoM) of Pakistan State Oil (PSO) convened on April 23, 2017 at company’s head office PSO House to review the company’s performance for nine months period from July 1, 2016 to March 31, 2017 of financial year 2016-17.

The company had Profit After Tax (PAT) of Rs14.2 billion (9 month fiscal year 2016 PAT: Rs4.6 billion). This was due to favourable growth of sales volume & net margin and reduction in finance cost (despite increase in average borrowings by Rs19.5 billion) during the period due to effective treasury management.

Keeping into account the performance of the Company, the Board declared an interim cash dividend of 100 percent i.e., Rs10 per share.

Additionally PSO imported 69 percent of industry imports to ensure uninterrupted product supply across the country.

Furthermore refinery upliftment improved to 37 percent (9 percent increase over SPLY) and new Cards business solution went live on March 1, 2017.

Non Fuel Retail initiated deployment of “Refuel” vending machines and ATMs at PSO’s retail stations nationwide. The company is also undertaking brand building activities and corporate campaign was launched in January 2017 with the theme ‘Every Journey Begins Here’.

PSO CSR Trust has been formed for carrying out CSR activities in the fields of education, healthcare, community building and disaster relief.

The outstanding receivables (inclusive of LPS) as of March 31, 2017 stood at Rs285.5 billion (June 30, 2016: Rs240.6 billion) against supplies of Black Oil, White Oil and LNG.

The receivables position improved when Rs20 billion was injected in February 2017 due to the intervention of Ministry of Petroleum & Natural Resources/Ministry of Finance/Ministry of Water & Power.

Efforts are underway to maintain Furnace Oil supply chain during Ramazan/summer of this year and to improve the outstanding receivables position.

The management of the company expressed gratitude to its shareholders, customers, business partners and other stakeholders for their trust in the company and to the Government of Pakistan, especially the Ministry of Petroleum and Natural Resources for their continuous guidance and support.

The Board of Directors of Shell Pakistan Limited announced the first quarter results for the company on 20th April. The Company posted an after tax profit of Rs1,396 million compared to the profit of Rs21 million made in the same period last year.

The company is continuing on its positive trajectory after delivering record breaking results in 2016, the highest in two decades.

For continued improvement in performance, PSO look forward for support from the government in bringing about further infrastructural and policy improvements in the sector that will allow PSO and other players to play a better role in building Pakistan’s energy future for our customers.

21 OIL MARKETING COMPANIES OF PAKISTAN GRANTED LICENSES IN SIX MONTHS

The Oil and Gas Regulatory Authority (Ogra) has opened floodgates to oil marketing companies of Pakistan by granting 21 fresh licences in just six months compared to only 20 over the past 70 years.

The new 21 companies given licences between July-December 2016 are expected to invest about Rs10.5 billion over the next few years to set up storages and filling stations in various parts of the country.

Ogra has been struggling for effective monitoring and enforcement of the existing oil marketing companies of Pakistan because of the workforce and technology constraints, this was also a reason behind nationwide petrol crisis about two years ago.

A regulator was taking the services of third party inspectors and Oil Marketing Companies of Pakistan in checking quality of petroleum products at the retail level and that of Hydrocarbon Development Institute of Pakistan (HDIP) at import and storage level for product tests.

The regulator did not have its own laboratories for quality examination, he was unsure about the total storage capacity in the country was enough to provide mandatory 21-day coverage of products stocks.

There used to be 6-7 major OMCs in the country with national network but the criteria for the OMCs was relaxed during the tenure of Pervez Musharraf.

As a consequence, the number of OMCs has since gone up to 20 but most of the new entrants were allowed operations in selective provinces.

The objective of the regulator was to “foster competition, increase private investment and ownership in the midstream and downstream petroleum industry”.

The companies that were granted licences to establish OMC included Best Petroleum, Oil Industries Pakistan, Accel Petroleum, Euro Oil, Oleum Petroleum, Al-Noor Petroleum, Damam Petroleum and Max Fuels.

The new licensees also included Fast Oil, Hi-Tech Lubricants, Jinn Petroleum, Vital Petroleum, International Petrochemicals, Allied Petroleum, Only One Energy, Pak Gasoline Services, Shams Petroleum, Berkeley Oil and Gas Development. Also included in the list were Taj Gasoline, My Petroleum and Terminal One.

The companies that were given permission to start marketing of petroleum products over the last six months included Horizon Oil Company, Petrowell, Kepler Petroleum, Outreach and Z&M Oils. These companies would be able to market their products only the respective provinces where they had built their oil storages.

The Ogra official said to ensure compliance with the notified technical standards, the regulator through different Third Party Inspectors (TPIs) also undertook the inspection of oil storage infrastructure developed by various OMCs like Bakri Trading Company at Shikarpur, Petrowell at Port Qasim, Outreach at Manga, Kepler Petroleum at Daulatpur, Gas & Oil Pakistan (Pvt) Ltd at Shaheed Benazirabad (Nawabshah), Z&M Oils at Pattoki (Kasur), Hascol Petroleum Limited at Amangarh, Daulatpur, Shikarpur and Mehmoodkot and Horizon Oil Company at Vehari.

The four terminal licenses issued to new companies Hascol Terminals Limited, Fauji Tarns Terminal Limited, Hascol Petroleum Limited for development of new oil storages/terminals at different locations like Thalian, Port Qasim and Kotla Jam, which will further strengthen the oil supply infrastructure.

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