Trade Chronicle Sep - Oct - 2020 issue

TRADE CHRONICLE
Oil and Gas
PPL achieves milestone in
frontier exploration
Due to a decline in easy and big
hydrocarbon finds in the country’s known
basins, Pakistan Petroleum Limited (PPL)
has taken up the challenge to venture into
risk prone yet prospective frontier areas
to increase its hydrocarbon reserve base
and open up new plays for exploration.
As a result, since 2009, 13 exploratory
wells have been drilled in Balochistan
alone. PPL recently achieved a historic
milestone with the discovery of significant
gas reserves from Morgandh X-1 in
Margand Block, Balochistan on the
Kalat plateau. Notably, this was the
westernmost discovery in Pakistan,
opening up a new sub-basin for future
exploration. Further deepening up of
Morgandh X-1 resulted in a longer gas
bearing column of about one kilometre,
indicating larger reserves potential than
estimated earlier which will be firmed up
based on appraisal wells. The discovered
column of gas along with map indicates
a volume close to one trillion cubic feet
(Tcf) of gas.
This will also pave the way for attracting
interest from foreign Exploration and
Production (E&P) companies to invest
in frontier exploration and supplement
the efforts of public sector companies,
such as PPL which has always provided
required impetus.
With a portfolio of 48 exploration blocks
and 59 fields and discoveries, PPL made
OGDC AGM concludes successfully
The 23rd annual general meeting of Oil and
Gas Development Company Limited was
held here in Marriott Hotel Islamabad on
Wednesday the 28th of October 2020. The
members approved financial statements
for the fiscal year ended June 30, 2020
together with the Director’s and Auditor’s
report. Final cash dividend of 25% of the par
value of the shares i.e Rs 2.5 per ordinary
share of Rs 10 each was also approved in
the said AGM. Moreover M/s KPMG Taseer
Hadi & Co., Chartered Accountants and
M/s A.F. Ferguson, Chartered Accountants
were re-appointed as the statutory auditors
of the company for the year 2020-21.
The AGM was presided over by Dr. Qamar
a record number of 11 discoveries in
one year during 2018-19 with a further
two in 2019-20, achieving a reserves
replacement ratio of 110 percent.
“E&P business is cost, technology-and
risk-intensive with a long gestation period,
especially for gas. These are compounded
in frontier areas with mountainous terrain,
where access, security and infrastructure
issues are major hurdles. Our success
in Morgandh suggests our conviction.,”
highlights Moin Raza Khan, MD & CEO,
PPL.
Khan clearly knows his business. A
seasoned petroleum explorationist,
he has significantly contributed to the
country’s E&P sector. During his career of
over 37 years, he has been responsible
for 9 percent of discovered gas in Pakistan
(about 5.3 Tcf gas) through more than 30
discoveries.
The momentum for recent successful
endeavours started back in 2009 by a
team led by Khan, then General Manager
Exploration, when PPL increased its
portfolio by acquiring 14 blocks and
another 11 in the 2013-bidding round,
Javaid Sharif, Chairman
of the Board of Directors,
OGDCL while other
Directors of the Board
were also present. The Chairman shared
the company progress and achievements
gained during the last financial year and
delineated that despite the COVID-19, the
company stood resilient and OGDCL timely
devised pandemic response plan, which
was implemented across all production
fields and operational areas.
He applauded the incumbent management
of the company led by Mr. Shahid Salim
Khan who has taken the company to new
heights in respect of exploration, drilling and
timely completion of ongoing development
projects and stated that the management
of OGDCL made necessary changes in the
working practices to protect its personnel
adding around 48,000 sq. km acreage.
“PPL has drilled 63 exploratory wells
since 2012, resulting in 22 discoveries in
operated areas with a success ratio of 35
percent adding about 2.764 Tcf gas and
127 Mbbls oil in place,” says Khan.
Among these, 11 discoveries were made
in Gambat South Block acquired in 2009
which currently produces over 100 Bcf
gas, 1100 bbl oil and 15 M tonnes LPG
per day through three producing fields.
On the production front, PPL maintained
about 1 Bcfde despite significant natural
decline from mature fields, while keeping
up the financial performance with the
highest-ever profit of Rs 62 billion made
in PPL’s history during 2018-2019.
Also, the company’s operations have
resulted in substantial foreign exchange
saving in 2018-2019 with significant
contribution to national exchequer which
was equivalent to USD 3.8 billion and Rs.
65 billion, respectively.
“The last two years have been challenging
in realigning our operational priorities
to give renewed focus on rigorous
exploration efforts in frontier areas as
well as diversifying in the mining sector
through Bolan Mining Enterprises, for
which several projects are in the pipeline.
Besides, organizational and human
resource course correction, snagging
company performance and management
cohesion has also been carried out,” he
adds.
and operations, while simultaneously
ensuring business continuity in the long
run. He further disclosed that during the
previous year company remained steadfast
in its resolve to sustain exploration,
development and production operations
while contributing towards meeting energy
demands of the nation.
The cumulative yield of oil and gas added
to the main network of SSGPL and SNGPL
stands at 1040 barrels of condensate oil and
approximately 47 million MMSCFD of gas.
Beside this OGDCL spud Twenty Five wells
during the last fiscal year in comparison
to Sixteen wells of corresponding year.
The meeting was attended by members
of OGDCL Board, MD/CEO OGDCL,
senior management of OGDCL and a large
number of shareholders.
TRADE CHRONICLE - Sep - Oct - 2020 - Page # 32