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Category: Energy

You can go through stories related to energy. The stories are about changes in petroleum prices and updates on energy sector of Pakistan and world.

  • Petroleum prices reduced up to Rs7 per liter

    Petroleum prices reduced up to Rs7 per liter

    ISLAMABAD: The government has reduced prices of petroleum products up to Rs7 per liters for the month of March 2020, a notification said on Saturday.

    The notification issued by Finance Division stated that the government decided to decrease the prices of petroleum products to provide relief to the consumers.

    The government is committed to extend relief to the public whenever fiscal space becomes available.

    As per the notification following prices will be effective from March 01, 2010:

    The price of petrol has been reduced by Rs5 per liter to Rs111.60 from Rs116.60.

    The price of high speed diesel has been reduced by Rs5 per liter to Rs122.26 from Rs127.26,

    The price of kerosene oil has been reduced by Rs7 per liter to Rs92.45 from Rs99.45.

    The price of light diesel oil has been reduced by Rs7 per liter to Rs77.51 from Rs84.51.

  • OGDCL declares fall in net profit to Rs53.18 billion during six months

    OGDCL declares fall in net profit to Rs53.18 billion during six months

    KARACHI: The net profit of Oil and Gas Development Company Limited (OGDCL) fell to Rs53.184 billion for the six-month period ended December 31, 2019.

    According to financial results for the six-month period ended December 31, 2019 announced on Wednesday, the after tax profit for the same period in last year was Rs56.75 billion.

    The company declared earnings per share at Rs12.37 for the period, which was also declined when compared with Rs13.20 EPS declared in the same period of the last year.

    The net sales of the company increased to Rs133.44 billion for six months period ended December 31, 2019 as compared with Rs126.89 billion in the same period of the last year.

    Operating expenses of the company increased to Rs30.55 billion for the period under review as compared with Rs29.63 billion in the corresponding half of the last year.

    The exploration and prospecting expenditure increased to Rs10.42 billion as compared with Rs4.48 billion in the corresponding period of the last year.

  • Pakistan Petroleum declares 21% decline in half year profit

    Pakistan Petroleum declares 21% decline in half year profit

    KARACHI: Pakistan Petroleum Limited (PPL) has announced 21 percent decline in after tax profit for half-year period ended on December 31, 2019.

    According to financial results submitted to Pakistan Stock Exchange (PSX) on Tuesday, the company declared net profit of Rs24.55 billion for the half year ended December 31, 2019 as compared with Rs31.04 billion in the same half of the last year.

    The company declared earnings per share of Rs9.02 for half year ended December 31, 2019 as compared with Rs11.41 in the corresponding period of the last year.

    The decline in profit has been mainly attributed to higher operating expenses and higher exploration expenses.

    The operating expenses of the company increased to Rs21.34 billion for the period under review as compared with Rs19.45 billion in the half-year period ended December 31, 2018.

    Similarly, exploration expenses grew to Rs11.74 billion for the half-year period ended December 31, 2019 as compared with Rs7.99 billion in the corresponding half of the last year.

    The company declared decline of profit by 39 percent to Rs10.31 billion for quarter ended December 31, 2019 as compared with Rs16.85 billion in the same quarter of the last year.

    Analysts at Topline Securities said that PPL’s reported lower than expected earnings during the outgoing quarter. This deviation from our estimates was mainly on account of higher than expected exploration expenses. Increase of 106 percent was seen YoY while on quarterly basis they increased by a massive 197 percent.

    PPL’s revenue grew by 7 percent YoY in 2QFY20, despite a decline of 3 percent in oil production and a 12 percent decline in gas production, the analysts said.

    Oil prices for the period didn’t fare well either declining 6 percent YoY for 2QFY20. The favorable exchange rate movement YoY was enough to post growth for the period under review YoY.

  • Oil prices fall by 15% since coronavirus outbreak

    Oil prices fall by 15% since coronavirus outbreak

    KARACHI: The international oil prices have fallen by around 15 percent since the outbreak of deadly coronavirus, analysts at Arif Habib Limited said on Tuesday.

    They said that the coronavirus epidemic in China has battered oil prices as WTI, Brent and Arab Light have declined by 15.8 percent, 16.3 percent and 14.5 percent, respectively since December 2019.

    To recall, China is the world’s largest importer of oil and second largest consumer of oil (15 percent of total demand).

    Any slowdown/extended slowdown in Chinese economic growth may lead to disruption in global oil markets with higher than expected inventories, which may trigger upwards sticky oil prices in the short run.

    In accordance with the situation and expected slowdown in the Chinese economy, OPEC lowered its oil demand by 230k bpd, while the US EIA, revised down its global oil demand forecast by 378k bpd.

    The situation may get worse as the outbreak is spreading globally with emerging cases in South Korea, Europe (Italy), Iran, Afghanistan and Israel.

    Pertinently, several countries have temporarily closed borders with the affected countries, including Pakistan, which closed its border with Iran.

    They believe oil prices in the short term will be dependent on the virus updates from China including new registered cases and death tolls. Moreover, spread of the virus to other countries and measures for combat are also expected to influence oil prices.

    They analyzed the impact of oil prices on Pakistan’s macro-economy and listed sectors.

  • Many fuel stations shut down after sudden demand, supply suspension rumors

    Many fuel stations shut down after sudden demand, supply suspension rumors

    Panic gripped Karachi on Wednesday evening as numerous fuel stations were forced to shut down following a surge in demand sparked by rumors of a fuel supply suspension.

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  • Oil sales fall by 10% on slow economic activity

    Oil sales fall by 10% on slow economic activity

    KARACHI: The domestic oil sales have declined by 10 percent during first seven months (July – January) 2019/2020 owing to slow economic activity.

    Analysts at Topline Securities on Tuesday said that the oil sales slipped to 10,139,000 tons during first seven months of the current fiscal year showing decline of 10 percent.

    The oil consumption in January 2020 fell by 13 percent year on year, where drop in sales was largely driven by 40 percent lower furnace oil sales due to government policy of moving away from FO-based power generation and 11 percent yoy decline in high speed diesel volumes amidst slow economic activity, particularly in the agriculture space.

    However, on a sequential basis, oil sales witnessed limited decline of 2 percent month on month, supported by 88 percent MoM higher furnace oil offtake given government allowing partial resumption of FO-based power plants to support the local refineries and possible exports by Byco Petroleum.

    High Speed Diesel sales were down by 13 percent Month on Month in January 2020, while motor spirit volumes declined by five percent MoM.

    Pakistan State Oil sales declined by 16 percent YoY and 10 percent MoM in January 2020, however, during first seven months of current fiscal year sales remain 6 percent YoY higher.

  • Petroleum prices kept unchanged

    Petroleum prices kept unchanged

    ISLAMABAD: The government has decided to keep the prices of petroleum products unchanged for the month of February 2020.

    A statement said on Friday that the government decided to keep POL prices at the level of prices applied for January 2020.

    For the month of January 2020 the prices were increased as:

    The price of kerosene (SKO) has been increased by Rs3.10 per liter to Rs99.45 to from Rs96.35.

    The price of petrol has been increased by Rs2.61 per liter to Rs116.60 from Rs113.99.

    The rate of High Speed Diesel (HSD) has been increased by Rs2.25 per liter to Rs127.26 from Rs125.01.

    The price of Light Diesel Oil (LDO) has been increased by Rs2.08 to Rs84.51 from Rs82.43.

  • Revised gas price proposal to hit fertilizer industry

    Revised gas price proposal to hit fertilizer industry

    ISLAMABAD: In response to the recommendation by OGRA dated December 11, 2019 the Ministry of Petroleum has worked out certain revisions in the sector wise gas prices where it has recommended to increase fertilizers feed gas price by 5 percent while fuel gas price to be linked with RLNG prices currently at Rs1,672/MMBTU.

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  • OGDCL announces gas discovery in Sindh

    OGDCL announces gas discovery in Sindh

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Friday announced discovery of gas in the exploratory well located in Khairpur Sindh.

    In an information shared with Pakistan Stock Exchange (PSX), the company announced that the joint venture of Ranipur Block comprising OGDCL as operator (95 percent), Government Holdings Private Limited (GHPL) (2.5 percent and Sindh Energy Holding Company (Private) Limited (SEHCL) (2.5 percent had discovered gas and condensate in the exploratory well Metlo 01, which is located in District Khairpur, Sindh Province.

    The OGDCL said that the Metlo-1 was spud on November 17, 2019 and reach a depth of 1504 meters inside Upper Goru Formation. Based on wireline logs, drill stem test (DST) was conducted in Ranikot Formation and Sui Main Limestone.

    The well has tested 1.85 million cubit feet per day of gas, 6 barrels per day of condensate and 38 barrels of water through 32/64” choke at well head flowing pressure of 285 pounds per square inch (Psi) from lower Ranikot Formation.

    The discovery of Metlo-1 is the result of aggressive exploration strategy adopted by the company. “This discovery will add to the hydrocarbons reserves of OGDCL, GHPL, SEHCL and of the country and will contribute in reducing the gap between supply and demand of oil and gas in the country through the exploitation of indigenous resources.

  • ECC constitutes price negotiation committee for TAPI gas pipeline project

    ECC constitutes price negotiation committee for TAPI gas pipeline project

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the constitution of Price Negotiation Committee (PNC) for TAPI(Turkmenistan-Afghanistan-Pakistan-India) Gas pipeline project.

    Adviser to the Prime Minister on Finance, Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet here at the Cabinet Division.

    The PNC shall negotiate the price with Turkmen gas. The Committee shall consist of the following members; Secretary, Ministry of Energy (Petroleum Division) as chairman. Secretary Finance or his nominee, Joint Secretary, Ministry of Energy (Power Division), Director General (Gas)/ Director (Gas) and Managing Director, SSGCL as members.

    The ECC approved the Technical Supplementary Grant of Rs 1.00 billion under demand No.04-Cabinet Division for establishment of Pakistan Tourism Development Endowment Fund under Public account.

    The Chair directed Pakistan Tourism Development Corporation to come up with their tourism development and soft image promotion plan in the next meeting.

    The ECC also granted approval of allocation of Gas from PGNiG’s RIZQ Gas Field to M/S SSGCL. It was briefed to the ECC that currently 2 wells namely Rizq-1 and Rizq -2 are producing 16 MMFCD gas from Rizq gas field, which are allocated to M/s SSGCL, whereas Rizq -3 which is under drilling, is expected to add another 9 to 10 MMCFD gas to the existing production. Upon completion of this well, the cumulative gas production from this gas field is expected to raise upto 25 MMCFD. The price of the gas shall be according to the applicable Petroleum Policy.

    On the Demand moved by the Ministry of Industries and Production for Rs 3.02 billion for the payment of outstanding dues of SSGC Private Limited by Pakistan Steel Mills on account of gas bills, the ECC directed to constitute a three-member Committee under the Chairmanship of Secretary Finance to find out a feasible solution for the issue so that the already allocated budget may not be exceeded and the liabilities of both SSGC and PSM are duly settled.

    ECC directed Ministry of Finance to explore the possibilities for improving the liquidity position of Pakistan State Oil as exchange losses of around Rs 28 billion have incurred on FE-25 loans by PSO.

    The loans were acquired under the instructions of Ministry of Finance for financing of import operations of PSO.

    Finance Ministry assured the ECC of utilization of possible all funding options in the ongoing financial year and any deficiency in the funds shall be entertained in the upcoming budget.

    ECC granted extension of Government of Pakistan guarantee against credit facility of National Bank of Pakistan amounting to Rs5 billion in favor of Utility Stores Corporation of Pakistan.

    On the request of the Ministry of Water Resources ECC granted approval to WAPDA to raise loan for the settlement of the Financial Facility amounting to Rs17.500 billion with one-year tenure and GoP guarantee.

    Clearance under Prudential Regulations R-4(clause 1a and 2) from the State Bank of Pakistan to disburse the facility initially against a letter of comfort was also granted.