The Oil and Gas Development Company Limited (OGDCL) issued a clarification on Monday, refuting media reports that suggested a massive discovery of shale gas in Sindh.
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World Bank’s IFC signs financing agreement to build six power projects in Pakistan
ISLAMABAD: IFC, a member of the World Bank Group, has signed a financing agreement of $450 million to build six wind power projects in Pakistan.
A statement on Friday said that IFC led the financing of a first-of-its-kind program to build six wind power projects in Pakistan, named the Super Six, with a total investment of US$450 million, to help deliver cleaner, cheaper power to meet the country’s critical demand for energy and reduce reliance on expensive imported fossil fuels.
Financing agreements for the landmark wind power program were signed by IFC’s Senior Manager, Nadeem Siddiqui and private sector power developers at a special ceremony witnessed by Pakistan’s Prime Minister, Imran Khan and Federal Minister for Energy, Omar Ayub.
The Super Six plants, with a combined capacity of 310 megawatts, will deliver among the lowest cost power generation in the country to date. They will be built in the Jhimpir wind corridor in Sindh province and will generate more than 1,000 gigawatt hours of electricity annually, enough to power 450,000 homes. The program is also expected to lead to emission reductions of about 650,000 tons of CO2 per year.
All Super Six projects are being developed by domestic companies: ACT Group, Artistic Milliners (Private) Limited, Din Group, Gul Ahmed Group and Younus Brothers Group.
“The government is aiming to increase the non-hydro renewable energy share in the overall generation mix from 4 percent to 20 percent by 2025 and it is welcoming to see Pakistan’s local private sector behind these Super Six wind projects, supporting the government’s long-term objective to see more wind and solar in the country’s energy mix,” Omar Ayub said.
“This additional clean power will help meet growing demand, reduce the average cost of electricity, and improve both reliability and security of supply,” IFC’s Vice President for Asia and Pacific, Nena Stoiljkovic said.
“We hope this will send a strong signal to the private sector that the renewable energy market in Pakistan is viable and sustainable, as well as beneficial to the Pakistani people.”
As part of the program, IFC is providing a financing package of US$320 million, comprising US$86 million from its own account and US$234 million mobilized from other lenders, which include Deutsche Investitions- und Entwicklungsgesellschaft (DEG, part of KfW Group of Germany), and local banks Bank Alfalah, Bank Al Habib and Meezan Bank.
The program is in line with the joint energy strategy of the World Bank Group, which includes IFC, the World Bank and the Multilateral Investment Guarantee Agency (MIGA), to help address Pakistan’s structural issues in the energy sector, through policy reforms and increases in private investments to expand clean energy generation and bring down the cost of power.
The cost of power from the Super Six projects is expected to be more than 40 percent lower than the current average cost of generation, a move that is expected to spur more investments in renewable energy in the country. IFC, one of the largest investors in Pakistan’s power sector, financed the first wind power project in the country in 2011 and helped created the framework for financing hydro and wind Independent Power Producers.
With this program, IFC will have made investments in 11 wind power projects in Pakistan. The World Bank is supporting the government on policy reforms to enhance the energy sector’s sustainability and the implementation of the upcoming new renewable energy policy framework.
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PPL announces highest-ever Rs61.6 billion after tax profit with record 11 discoveries
KARACHI: Pakistan Petroleum Limited (PPL) has posted the highest-ever Rs61.6 billion after tax profit with a record number of 11 discoveries during financial year ended June 30, 2019.
This was disclosed at the 68th Annual General Meeting of PPL that was held on Monday.
Members approved financial statement for the fiscal year ended June 30, 2019 together with auditor’s report.
Final Cash Dividend of 20 percent on ordinary and convertible preference shares besides 20 percent bonus shares to ordinary shareholders and 10 percent to convertible preference shareholders was also approved.
Shamsul Islam, Chairman, BOD presided over the proceedings and shared that PPL continued to strengthen its position as a leading oil and gas company and created healthy returns for all stakeholders.
Moin Raza, Managing Director and Chief Executive Officer of the company highlighted PPL’s progress during 2019/2019, and said that the most significant was the highest ever profit after tax of Rs61.6 billion along with a record number of 11 discoveries in a year in company and partner-operated assets.
The company also drilled the first ever international exploratory well, Madain – I, in operated Block 8, Iraq, a first for a national company.
Focusing on key operational highlights, Khan mentioned drilling of 30 exploratory and development wells, including Kekra-1 in partner-operated offshore Indus G Block which encountered excellent quality reservoir but was aborted due to difficulty in locating hydrocarbons.
He also shared ongoing efforts for expanding the company’s exploration portfolio through farm in/out and acquisition of two new blocks at the recent bidding round, making a total of 47 blocks.
The company continued development activities to optimize production from existing fields that led to an average production of 977 MMscfde in 2018/2019. In this, he also mentioned commissioning of GPF-IV during phase I at Gambat South and Nashpa LPG plant as well as the highest-ever production of 228,310 tons barites from Bolan Mining Enterprises.
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Mari Petroleum sets up subsidiary at Dubai Free Zone
KARACHI: Mari Petroleum Company Limited (MPCL) has announced establishment of a wholly owned subsidiary company at Dubai Free Zone for expansion of operations.
In a notice to Pakistan Stock Exchange (PSX) on Wednesday, the company said that its board of directors had approved establishment of a wholly owned subsidiary company of MPCL in Dubai Free Zone Area and investment of one million US dollars in the proposed subsidiary company as MPCL’s equity contribution.
The board is of the view that formation of a foreign subsidiary company is imperative for MPCL for expanding its operations across other countries in oil, gas and allied services as well as other sectors.
Further, activities related to foreign investment and arrangement of foreign financing can be handled more proactively through a company registered abroad.
The company further said that transfer/investment of funds out of the country would be subject to approval by the State Bank of Pakistan.
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PM inaugurates CPHGC 1320MW Coal-fired Power Plant
KARACHI: Prime Minister Imran Khan on Monday inaugurated CPHGC 1320MW Coal-fired Power Plant, Hub, Balochistan and said that more collaborations on the same pattern may be seen in future.
The prime minister said that the government will facilitate joint collaboration between Pakistani and Chinese businesses in various sectors.
Addressing inaugural ceremony of China Hub Power Generation Plant in Balochistan on Monday, he said this is the first joint project under China Pakistan Economic Corridor and we want to see the pattern in future too. He said a large number of Chinese business corporations are interested in investing in different sectors of the economy.
He said the government is moving towards the second phase of CPEC and it has established CPEC Authority to facilitate the projects under the program.
The prime minister said during his recent visit to China, the Chinese President and Prime Minister expressed interest to give momentum to CPEC projects.
The prime minister said the productivity of Chinese companies is quite higher than their counterparts in Pakistan and our country would like to benefit from it.
He said we will introduce new techniques in farming sector in collaboration with Chinese enterprises.
The prime minister congratulated the Hubco Chairman Habibullah Khan on the project and asked him to use more indigenous coal for power generation. He also asked him to work on water projects for Karachi.
He regretted that Pakistan has a rich hydropower resources and capacity which was not utilized effectively by the previous governments.
Imran Khan said government is committed to increase ease of doing business in the country to attract foreign investment. He said red tapism and undue hurdles in the way of business are being removed.
Imran Khan said Balochistan is the province that is full of rich mineral deposits. He said during his visit to the US chairman of company previously working on Rekodik project informed him that Pakistan has one of the largest and finest quality gold reserves in the world. Chairman said they are still interested in working on the reserves as they believe that incumbent government of Pakistan is free of corruption. In past, a small group of people plundered the national wealth and filled their pockets.
The prime minister said apart from mineral resources, the province of Balochistan is also blessed with huge fisheries resources and its development can help earn valuable foreign exchange.
Imran Khan said PTI government inherited a record debt which led to more inflation, devaluation of rupee and other challenges. However, difficult decisions were made which have started yielding positive results.
The Prime Minister said we have to give clean governance to our country for the future generations. Imran Khan said we are committed to mobilize the youth of the country for national development.
He said youth are the biggest asset of Pakistan and government will give them skills training to work in various sectors. He said centers of artificial intelligence, robotics and other modern fields are being opened to prepare our youth for the modern work requirements.
Earlier, in his address Balochistan Chief Minister Jamal Kamal said investment worth billions of dollars in the province will change the outlook of Balochistan. He said Balochistan will become a hub of investment in the coming days.
Jam Kamal Khan said Prime Minister Imran Khan is taking special interest in development of Balochistan.
He said it is an unexploited province and is the only place in Pakistan that can boost the economic frontiers of the country in the coming years. The Chief Minister said Balochistan is endowed with rich mineral resources that are largely untapped and investors can take advantage of these assets.
Chinese ambassador Yao Jing, Federal Ministers and other senior officials were also present on the occasion.
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Attock Petroleum posts 21 percent decline in after tax profit
Attock Petroleum Limited, a leading player in the energy sector, has reported a 21 percent decline in its after-tax profit for the quarter ended September 30, 2019.
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Pakistan’s oil, gas reserves witness increase
KARACHI: Pakistan’s oil and gas reserves have witnessed increase by 7 percent and 1.4 percent, respectively, according to analysts at Topline Research.
The analysts on Thursday said that Pakistan Petroleum Information Services (PPIS) had reported oil and gas reserves for Jun 2019, whereby few major fields of Tal block (operated by MOL Pakistan) have witnessed an upward adjustment in which Pakistan Oil Fields (POL), Pakistan Petroleum Limited (PPL) and Oil and Gas development (OGDC) have working interest of 21 percent, 28 percent and 28 percent respectively.
Overall oil reserves of the country are up by 7 percent (excluding PEL reserves) to 286 million barrels (10 years) mainly on back of upward adjustment in fields of Tal block and Adhi.
Maramzai and Mardankhel fields (belongs to Tal Block) have seen increase of 42 percent and 89 percent respectively in their recoverable oil reserves. Increase in reserves have extended fields life by 1-3 years, as per estimates.
Adhi South reserves are also separately reported, whereby overall Adhi field oil reserves are up 70 percent to 25.9 million barrels. Field life due to incremental reserves is up by around 3 years.
Gas reserves of the country are up by meagre 1 percent to 21tcf (15 years). Field wise, reserves from Adhi, Marmazai, Mardankhel, Makori East, and Manzalai are increased by 12-132 percent. These incremental reserves will help companies to continue their production for 1-3 years more.
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Oil sales show continuous decline for 8th consecutive quarter
KARACHI: The oil sales witnessed continued downward trend in first quarter of fiscal year 2019/2020 for 8th consecutive quarter and posted fall of 13 percent Year on Year (YoY).
Major decline was witnessed in Furnace Oil (FO) and Hi Speed Diesel (HSD) to the extent of 29 percent and 16 percent YoY, respectively, analysts at Topline Securities.
Quarterly sales in absolute terms clocked in at 4.4 million tons during 1QFY20, lowest in last 26 quarters. Excluding FO, sales are lowest in last 14 quarter low.
Diesel sales continues to fall (down 16 percent YoY) for 6th consecutive quarter on the pretext of slowdown in economy, slower transportation activities and smuggling from Iranian border.FO sales fell by 29 percent YoY due to its lower requirement in power generation after availability of relatively cheaper fuels like RLNG/coal.
During Sep 2019, oil sales went down by 19 percent YoY. On MoM basis, volumes were up 16 percent due to Eid holidays in August 2019.
Among companies, PSO outperformed industry and peers by increasing its volumetric sales by 11 percent during 1QFY20 vs. fall of 13 percent YoY in industry sales.
The company has increased its market share from 37 percent in 1QFY19 to 47 percent in 1QFY20 (flat QoQ).
Hascol underperformed industry by posting decline of 68 percent YoY in oil sales during 1QFY20. Resultantly, market share of the company fell to 5% in outgoing quarter vs. 12 percent in 1QFY19.
In Key risks to the sector include 1) further slowdown in the economy, 2) increase in turnover tax, and 3) currency depreciation.
Key risks to the sector include 1) further slowdown in the economy, 2) increase in turnover tax, and 3) currency depreciation.
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K-Electric awards contract to set up 900MW power plant
KARACHI: K-Electric – power generation, transmission and distribution company – has awarded a contract to establish 900MW power plant with estimated cost of around $425 million, an announcement said on Thursday.
According to information shared with Pakistan Stock Exchange (PSX) the power company said that the board of directors at its emergent meeting held on September 25, 2019 approved award of EPC contract to Siemens – Harbin consortium to establish 900MW combined cycle power plant at Bin Qasim.
The estimated contract value would be around $425 million.
The project will be executed on fast track and additional power will be available in summer 2021.
The project will positively contribute to bridge electricity demand-supply deficit in KE service area, the company said.
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Hascol Petroleum gets license for lube oil blending plant operation
KARACHI: The Oil and Gas Regulatory Authority (OGRA) has granted license to Hascol Lubricants (Private) Limited to start commercial operations of the lube oil blending plant located at Port Qasim Authority, company official said on Wednesday.
Hascol Lubricants (Private) Limited is the wholly owned subsidiary of Hascol Petroleum Limited.
The company said that the blending plant is built on a state of the art technology with a capacity of 40,000 Metric Ton per annum.
The blending plant is powered by ABB Blending System (French origin) which is considered as one of the best in the world along with the Comaco Filing Machines (Italian Origin), said a company notice sent to Pakistan Stock Exchange (PSX).
The blending plant is also equipped with a laboratory of superior technology, capable of performing test of lubricants against international standards.
“The company expects that the commencement of the commercial operations of the blending plant will have a positive financial impact on its profitability and will also improve the existing volumes of the company’s lubricants business.”