Petroleum Ltd (PPL) remains a leader in the country's oil and gas
exploration and production sector since it started operations on July
the discovery of the Sui gas field in June 1955 - the seventh largest
in the world at that time - to its series of other important
discoveries over the years, PPL has moved from strength to strength,
playing a vital role in Pakistan's economic development.
recent years, PPL has intensified efforts to increase its hydrocarbon
production to keep pace with the growing energy needs of Pakistan's
the country's economy entering into a higher growth trajectory of six
to eight percent over the last three years, never before there has
been such urgency and need to expand cheap and environment friendly
indigenous energy sources to match the booming demand.
PPL, which enjoys a 28 percent share in the country's gas supply, has
envisaged plans for aggressive and extensive exploration to add new
hydrocarbon reserves and optimize production.
focused and aggressive approach is vital for the progress and
prosperity of the Company, as well as for Pakistan at a time when high
world oil prices pose one of the most formidable challenges to the
economies across the globe.
these new challenges, PPL has chalked out a dynamic exploration and
development strategy with a close focus on enhancing reserve
replenishment ratio, improving drilling to discovery ratio and
introducing production efficiencies through use of modern production
2004/05 (July-June), PPL boosted exploration activities by 50 percent,
compared with the past year, allocating 2,050 million rupees for this
purpose. During the year, it carried out exploration at 15 blocks. In
the coming years, the Company plans to be active in at least 20 blocks
to ensure that it maintains an edge as a leader in the country's
which owns and operates Sui, Kandhkot and Mazarani Gas Fields and
produces natural gas, Natural Gas Liquids (NGL), crude oil and
Liquefied Petroleum Gas (LPG) from its joint-venture Adhi Field near
Chakwal, has won four more explorations blocks through competitive
bidding as an operator.
also won operatorship of another exploration block in Dadhar, where
the previous operator was unable to work for three years because of
the security problems. But the Company has overcome this challenge,
completed all the field surveys successfully and has already finished
magnetic, gravity and seismic surveys. And now drilling of a well,
each in Dadhar and Kot Sarang, will start in first quarter of 2006.
gas reserves have also been found from the successful drilling of the
Manzalai-1 and Makori-1 test wells in Tal block in the North West
Frontier Province where PPL is a joint-venture partner.
Extended Well Testing is underway by the operator MOL Pakistan Oil
& Gas Co. B.V. to assess the reserves of Manzalai-l, from where a
supply of 30 million cubic feet gas per day has started. The operator
has built a 78-km long gas pipeline and installed processing
facilities at Gurguri.
drilling at Manzalai-2 -- an appraisal well - is on, while there were
plans to drill two more test wells.
marking of 50 years of Sui Gas Field production in itself is a
phenomenal achievement. This field has proved a mainstay of the
country's energy sector and a major driver of its economy for five
from Sui field, which produces 700 MMscf of gas daily, has become the
second name of natural gas in Pakistan and to date remains the
country's largest reserves.
Company's current hydrocarbon production in terms of energy is
equivalent to around 173,000 barrels of crude oil per day.
looks ahead, PPL also plans to go into oil and gas exploration
ventures in Middle East, eastern and northern African countries,
besides increasing these activities within the country. For this
purpose, a new Venture Cell has been established.
also been vigorously trying to fulfill its role as a responsible
corporate citizen. It has setup a PPL Welfare Trust, which undertakes
community development and welfare projects especially for the people
living around its operational and concession areas.
Welfare Trust's focus is on the specified sectors, including that of
health, education, and infrastructure development. These projects are
under-taken in consultation with all stakeholders -- particularly the
the financial year 2004-05 (July-June), PPL has spent millions of
rupees on several development and social welfare projects and as
donations to various organizations promoting such activities.