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Nov 22, 1999

  1. International
  2. Finance
  3. Industry
  4. Policy
  5. Trade
  6. Gulf

Oil, gas discovered in Kohat

Oil and Gas Development Company Limited (OGDCL) has made an oil and gas discovery in Chanda Well-1 in Kohat drilled in Shadardarra Exploration License.

The government granted an exploration license to a consortium led by OGDCL over Shakardarra area covering 943.43 sq kms, located in Mianwali, Attock, Kohat, Karak district and Waziristan Agency in Punjab and NWFP Provinces, says a press release of OGDCL issued.

This is the first discovery made by any company in the NWFP and it will open up a new area for hydrocarbon exploration in the Indus Basin.

Chanda Well-I was started on December 3, 1998 and is located in district Kohat, NWFP.

The well was originally planned to T.D. of 4500 Meters in Chichali formation of cretaceuous age.

After further regional geological review, it was decided in September, 1999 to drill the well to a depth of 4850 metres to evaluate the hydrocarbon potential of Datta Formation of Justice age.

Detailed reservoir potential was assessed on the basis of various logs and a number of zones were selected for testing. The zone-1 from 4770-4755 meters in Datta Formation was tested through Drill Stem Test on November 13, 1999.

The well flowed 1223 barrels of oil per day of 41 API gravity and 5.19 million Cubic Feet per day of gas through 1/2" Choke with a well head flowing pressure of 1550 psi.

OGDCL also identified 3 zones of primary reservoir objectives of Patala and Lockhart formations of Paleocene age and 4 additional potential reservoir interval in Eocene/Cretaceous/Jurassic sequences for testing.

The full reservoir potential of well would be assessed after completion of the entire testing operations.

PVC resin production begins

PVC resin production has commenced at Engro-Asahi's state-of-the-art PVC manufacturing facility in Port Qasim, it was announced by the company.

Branded as "SABC PVC", the resin will fullfil the raw material requirement of Pakistani manufacturers, who has so far relied on imported PVC resin, it added.

The company said that the initiation of production brings to completion two years of innovation and hard work towards achieving self-sufficiency in the production of PVC resin in Pakistan.

Engro-Asahi Polymer and Chemicals Ltd is a 'joint venture', set up by the Engro Chemical Pakistan Ltd. Asahi Glass Company and Mitsubishi Corporation.

The first project undertaken by Engro-Asahi is the PVC resin manufacturing facility with an initial capacity of 100,000 metric tons.

Govt to sell stakes through KSE

Finance Minister Shaukat Aziz has said that to boost investor confidence and to give more choice for investment in future, the government would sell its stakes through Karachi Stock Exchange.

The finance minister on Wednesday visited the Karachi Stock Exchange and met the chairman, past presidents and the board of directors.

Regarding the IPPs issue, the minister said that he was fully conscious of the importance of resolving this issue and its impact on the capital market. It was the earnest intention of the government to resolve the Hubco issue expeditiously in the best national interest, he added.

The privatisation proceeds would be used for reducing the debt burden. He agreed that the best way to go about it would be through the stock exchanges and this would make the process more transparent. He further said that offloading of the shares would boost the confidence and the market forces would allowed to play their role and determine the fair price of the state-owned companies.

Rice inspection to continue

The Minister for Commerce and Industries Abdur Razzaq Dawood said Tuesday that Quality Review Committee's (QRC) inspection system will continue as it was useful in preventing unscrupulous practices in rice exports.

According to a press release issued by Export Promotion Bureau (EPB), he was talking to a delegation of Rice Exporters Association of Pakistan (REAP) at EPB.

The delegation informed the Minister that Iran, Iraq, Indonesia and the Philippines were the main importers of Pakistani rice.

Auction of 22 units yields 16 pc of liabilities

A leading financial institution with majority shareholding of private sector has reported realization of auction proceeds of 22 industrial units at 16 per cent of the total accumulated liabilities, and about 67 per cent of the principal amount advanced to the sponsors of the projects.

All auctioning is being done under the judicial supervision. Out of these, 18 units have already been auctioned while four are under process and the total recovery is reported to be about Rs600 million. As against this recovery, the total liabilities on these units is said to be Rs3.7 billion. This include about Rs900 million principal loan amount and Rs2.6 billion accumulated liabilities.

About 80 or so sponsors and directors of all these auctioned units include the names of luminaries of the business community who have now got their names written off from the Credit Information Bureau of the State Bank of Pakistan and are back in the business. They are now entitled to seek more loans from the banks and the financial institutions.

Jamote estimates' cotton crop at 10 million bales

The Federal Minister for Food, Agriculture and Livestock Dr Shafqat Jamote has put the whole blame on previous Nawaz Sharif government for producing present cotton price crises, saying military government has only inherited wrong and faulty policies and now it was trying to correct them.

He also contradicted cotton production estimate for 1999-2000 crop saying it was wrong to assume that the country will produce 11 million bales. He claimed that crop production would be around 10 million bales.

HBL's farm credit up

The Habib Bank has disbursed Rs2643 million during Jan-October 1999 among farmers as against disbursement of Rs l732 million during the corresponding period last year, showing an increase of 34 per cent.

The HBL announced here Saturday that the bank had disbursement of Rs 2104 million during the year 1998 and Rs l552 million during the preceding year 1997 showing an increase of Rs 26 per cent in disbursement to farmers.