Aug 08 - 14, 2005

Pakistan Petroleum Ltd (PPL) has been playing a pivotal and leading role in the country's energy sector for more than five decades. From the 1952 discovery of natural gas in Sui-the world's 7th largest at that time and the biggest in South Asia - to its series of natural gas and oil discoveries in recent years in parts of Sindh and Punjab provinces, PPL has moved from strength to strength, playing a major role in Pakistan's economic development.

Today, PPL alone meets almost 30 percent of the country's total gas production. As of June 30, 2005, the remaining proven recoverable reserves of PPL consisted of 4.781 Tcf of gas (851 million barrels of oil equivalent) and around 21 million barrels of oil. Its current hydrocarbon production in terms of energy is equivalent to around 173,000 barrels of crude oil per day, which helps the country to save a substantial amount of foreign exchange every year.

Sui, Kandhkot, Adhi and Mazarani are PPL's four developed and producing fields, while the non-operated fields are Qadirpur, Miano, Sawan, and Block-22. The non-operated Manzalai discovery in Tal Block, at present, is in an extended well test production. PPL's present exploration portfolio consists of 15 exploration blocks out of which nine areas, including two offshore blocks, are PPL operated. The joint-venture partners operate the remaining six blocks.

PPL remains proud of its dedicated team of professionals, who are striving to maintain its status as Pakistan's leading hydrocarbon producer. To achieve this goal, PPL has devised a dynamic exploration and development strategy to enhance reserve replenishment ratio, improve drilling to discovery ratio and introduce production efficiencies.

The company's reserve replacement plan includes review of attractive investment opportunities for acquisition of producing oil and gas assets in order to boost its hydrocarbon reserve profile and at the same time, participate in securing the country's overall energy plan.

PPL plans to continue its extensive exploration programme to add new hydrocarbon reserves and optimize production - vital for the progress and prosperity of the company, and the country as well.

A ware of the reducing number of low-risk, low-cost areas in the country, the company has embarked on exploration activities in the relatively unexplored areas such as Balochistan/Pishin basins and the untapped offshore areas.

It became Pakistan's first company to venture offshore as an operator by commencing drilling of a well Pasni X-2, located about 58 kms southwest of Pasni.

PPL is also considering the prospects of venturing into international exploration to increase its hydrocarbon reserves portfolio. In this respect, several prospective countries are under consideration.

PPL has also been vigorously trying to fulfill its role as a responsible corporate citizen. "Service to the people living on the land we operate" has been its motto. It has setup a PPL Welfare Trust, which undertakes community development and welfare projects in specified areas, including health, education, and infrastructure development, in consultation with all stakeholders, particularly the local community.