Manager Research
July 09 - 15, 2007

Pakistan Petroleum Ltd (PPL) is the largest gas producer and second largest exploration company in Pakistan. PPL is a government owned company with the Government of Pakistan holding a 78% stake. The International Finance Corporation has a 6% stake in the company, acquired from PPL's former owner Burma Oil Co. Ltd. PPL is the second largest stock by market cap in the Karachi Stock Exchange. The Company has a staff of about 2520 employees with about 431 qualified technical staff in the fields of engineering, computer and earth sciences.


PPL was incorporated on June 5, 1950 whereby the company inherited the assets and liabilities of the Burmah Oil Company Limited and commenced operations on July 1, 1952. At the time of incorporation, the Burmah Oil Company held the majority stake of 70% with GoP accounting for 30% stake and the balance held by private Pakistani shareholders. Burmah Oil divested 6% of its shares to the International Finance Corporation (IFC) in 1982, whereas in 1997 it sold the remaining shareholding to the GoP. In July 2004, the Government successfully concluded a 15% offer for sale and IPO of the company on the domestic stock exchanges at Rs.55 per share. The basic issue was for 10% shares with a green-shoe option of another 5% and the entire issue was 3.7 times oversubscribed.


The Company currently has a working interest in 19 exploration blocks, of which 10 are PPL operated and the remaining 9 are partner operated. The Company's holds operatorship of major oil and gas fields including Sui, Kandhkot, Adhi and Mazarani, while its non-operated portfolio includes interests in the Qadirpur, Miano, Sawan and Tal fields. PPL holds joint ownership with the Government of Balochistan in Bolan Mining Enterprises, which is involved in the business of mining exploratory well-drilling grade barite powder.




Discovery of Pakistan's Largest Gas Reserves at Sui


Discovery at Kandhkot Gas Field. Discovery of Gas at Mazarani Field


Commercial Production of Barytes by Bolan Mining Enterprises


Crude Oil discovery at Adhi field


Commercial Production of Crude Oil from Adhi field


Start of Commercial Production From Kandhkot Gas Field


Commencement of gas production from Qadirpur Gas Field


Supply of gas from Miano Gas Field


Commencement of gas supply from Mazarani Gas Field.

Sui - PPL started with great pace to explore the untapped and abundant energy resources. The saga of drilling operations which commenced in 1952 from Sui, continues today in the year 2007. The Sui deep well was drilled down to 4,713 meters and gas was discovered in Pab sandstone formation in 1999.

Adhi - is a joint venture between PPL, POL and OGDCL. PPL is the operator with a 39% working interest.

Kandhkot - Kandhkot gas field is located in upper Sindh on the right bank of river Indus, 88 Km southwest of Guddu Barrage and 44 Km south of Sui gas field. PPL discovered gas at Kandhkot in 1959 when it drilled Kandhkot Well-1 on the Northeastern dome.

Mazarani - PPL in a joint venture with Government of Pakistan and Hunt International Petroleum Company discovered gas in lower Eocene formation at Mazarani in 1959. Currently PPL and Government Holdings (Pvt) Ltd. are the Joint Venture partners in this field. PPL is the Operator with 87.5 percent share.

Miano - Miano field is located in Sindh Province. It is a joint venture between OMV (Pakistan) Exploration G.m.b.H (Austria), Eni Exploration and Production Limited (Italy), Pakistan Petroleum Limited and Oil and Gas Development Company Limited. Pakistan Petroleum Limited share in the joint venture is 15.16%.

Sawan - Sawan field is a joint venture between OMV (Pakistan) Exploration G.m.b.H (Austria) Eni Exploration and Production Limited (Italy), Pakistan Petroleum Limited, Morayske Naftove Doly (Czechoslovakia) and Government Holding (Pvt.) Ltd. Share of Pakistan Petroleum Limited in the Joint Venture is 26.18%.

Qadirpur - Qadirpur Gas Field is a Joint Venture between OGDCL, PPL and other companies. OGDCL is the operator with 75% share while PPL holds 7% interest.


The company continued to perform well in both revenue and profitability terms. During the nine month period ending on March 31, 2007, profit after tax amounted to Rs 13,105 million (EPS: Rs.19.11) as compared to Rs 9,589 million (EPS: Rs.13.98) over the corresponding period of the previous year, representing an increase of 37 %. The increase in profitability is mainly attributable to high international crude oil prices and the phased increase in price under the Sui and Kandhkot Gas Price Agreement 2002 and an increase in production of NGL and LPG at Adhi field during trial production of Adhi LPG / NGL Plant II.