PPL & SUI - A GROWING RELATIONSHIP

July 03 - July 09, 2006

From a barren, rugged and uninhabited region to a bustling town of more than 30,000 people, Sui and its adjoining areas in Dera Bugti District of Balochistan have come a long way since Pakistan Petroleum Limited (PPL) started commercial production from the country's biggest natural gas field in 1955.

PPL just not witnessed, but helped the Sui town to develop gradually from all the small and big clusters of neighborhoods, which sprung around its gas field over the years. The Company can proudly claim to have played pivotal role in the evolution of Sui town, which is a classic example of Corporate Social Responsibility (CSR) practically in action.

From the early years of its operations, PPL has been more than a friend in the neighborhood for the local people. The Company has ensured Sui Gas Field not just fulfills its primary and crucial responsibility of meeting the country's energy requirements, but contributes in the social uplift and development of this remote region. No doubt, the results of our efforts have proved heartening; from providing free-of-cost potable water and natural gas to every household of Sui to ensuring quality- education and healthcare service, PPL has weaved its bond with the local community in more than one ways.

EDUCATION

PPL established Sui Model School way back in 1957. The school, which made a humble beginning from a barrack with only a handful of students, has now transformed into a leading educational institution of Balochistan. Today, the school provides education to more than 2,700 students in its two shifts at a nominal fee. PPL meets all the recurring expenditure of the school. Thanks to the dedicated school staff; students of this school have made their mark not just on the provincial and national level, but some even participated in the prestigious international events - winning laurels for themselves and their proud institution. Very recently, the Company constructed another 25-room school building at the cost of 13 million rupees to accommodate the growing number of students of the Sui town. Taleem Foundation - a non-government organization of Balochistan - is operating this school.

The Company has also opened doors of information technology one of the fastest growing fields of education for students of Sui by setting up a Computer Training Center-cum-Library at the cost of 10 million rupees. The Center will be equipped with latest computers and other facilities and provided with a large number of useful books and periodicals.

Another step, which will have far-reaching impact in promoting education and inter-provincial harmony and unity, is the launching of a scholarship scheme for Dera Bugti residents. The scheme enables students to have access to higher professional education and study medicine, engineering, information technology and business administration at the top recognized and professional institutions of Sindh, Punjab and North West Frontier Province.

Moreover, the Company constructed library building worth 1.5 million rupees at the Government Boys Intermediate College, Dera Bugti. It also adopted a Technical Training Center at Sui whereby its building was renovated and facilities were improved.

HEALTH

Sui Field Hospital, which evolved from a small clinic setup here in 1954, caters thousands of patients every year, providing free-of-cost treatment to the locals. Today, this hospital has its own Emergency Center, Laboratory, X-Ray unit, Operation Theaters and is equipped to handle from minor to major surgeries. Its Gynecological Ward is considered the best in the area. PPL has been covering the entire maintenance and running cost of this hospital since it was established.

PPL now plans to build a general hospital for the public at Sui.. The architectural and structural designing of the new hospital are complete and the construction will start soon.

PPL also operates a Mobile Dispensary on the need basis, which provides free health care to residents of far-flung villages of Dera Bugti. The recurring cost of this dispensary is around 1.5 million rupees. The Company also operates a free medical dispensary. It has also adopted a Rural Health Centre at Sui and provided a new ambulance worth 2.0 million rupees to the district Headquarters Hospital, Dera Bugti. The company also holds regular free eye camps in the area.

FREE WATER AND GAS FOR SUI RESIDENTS

In a first of its kind scheme run by any corporate entity in Pakistan, the Company brought water to Sui town from a pumping station located 60 km away near Kashmore. The water is provided free-of-cost to the Sui residents.

PPL spent more than 60 million rupees to build a natural gas supply network for Sui town resident. This uninterrupted free supply of Gas to the Sui residents costs PPL an annual recurring expenditure of 70 million rupees.

INFRASTRUCTURE DEVELOPMENT

PPL constructed a 55-kilometer long road linking Sui with Kashmore town at the cost of 102 million rupees. The company also constructed more than 10 kms of internal roads at Sui town.

The construction of an airstrip with night landing facility, post office and police stations buildings are some of the other key projects completed in Sui; benefiting the local population. The Company has also constructed playgrounds and parks as well as a shopping centre and a bus stand for Sui residents. PPL also installed streetlights and mailboxes and introduced the garbage collection system for Sui.

PPL proves with actions that it is a caring Company by giving top priority to social welfare and infrastructure development in consultation with the local community and all the stakeholders. PPL forges ahead hand-in-hand with the local people with whom its bond and relations is growing and expanding with each passing year. PPL generating warmth, building futures.

CONSUMPTION OF GAS (PERCENTAGE SHARE)

YEAR

HOUSEHOLDS

COMMERCIAL

CEMENT

FERTILIZER

POWER

INDUSTRIAL

1995-96

18.9

2.9

1.3

25.8

32.0

19.1

1996-97

19.3

3.1

1.5

25.2

32.4

18.4

1997-98

22.1

3.1

2.0

24.3

29.4

18.9

1998-99

20.7

3.4

1.3

26.3

28.9

19.1

1999-00

19.6

3.0

1.2

24.8

32.2

18.9

2000-01

18.2

2.7

0.9

22.6

37.0

17.8

2001-02

17.5

2.7

0.9

21.6

38.2

18.5

2002-03

17.6

2.6

0.4

20.7

38.5

18.9

2003-04

14.8

2.3

0.7

17.6

44.7

18.4

2004-05

14.8

2.3

1.2

16.4

43.7

19.5

AVG

18.4

2.8

1.3

22.5

36.6

18.8

Jul-Mar

.

2004-05

17.3

2.5

1.0

16.3

41.7

19.2

2005-06

16.0

2.4

1.1

16.1

42.3

19.2

Source: Hydrocarbon Development Institute of Pakistan