Pkrevenue.com

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.

  • POL prices increased up to Rs3.10/liter

    POL prices increased up to Rs3.10/liter

    ISLAMABAD: The government has increased the prices of petroleum products (POL) up to Rs3.10 per liter effective from January 01, 2020.

    In a notification issued on Tuesday, the government decided to increase the prices of petroleum products as per recommended by Oil and Gas Regulatory Authority (OGRA).

    Following are the new POL prices:

    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.

  • PPL announces major discoveries of hydrocarbons in Sindh, Balochistan

    PPL announces major discoveries of hydrocarbons in Sindh, Balochistan

    KARACHI: Pakistan Petroleum Limited (PPL) has announced major discoveries of hydrocarbons in Sindh and Blochistan, according to notifications received by Pakistan Stock Exchange (PSX) on Monday.

    In the first notice, the PPL disclosed a hydrocarbon discovery in exploratory well, Bitro-I in Latif Block located in Kharipur District, Sindh, by the joint venture partners of the Latif Exploratory License, namely the company which holds a 33.30 percent working interest there in, ENI Pakistan (M) Limited which holds a 33.30 percent working interest there in, and United Energy Pakistan Limited, which holds a 33.40 percent working interest there in and is also the operator of the Block.

    The PPL said that the well was spud on October 6, 2019 to test the hydrocarbon potential of B and Intra B sands of the Lower Goru Formation, as primary and secondary objectives, respectively. The well was successfully drilled to a depth of 11,854 ft. Based on the wireline logs and the drilling results, a Modular Dynamics Testing was done against the promising zone in the B and Intra B sands.

    Upon the completion of the well, B sand zone was perforated, which flowed 28.6 million standard cubic feet per day of gas with 152 barrels per day (condensed) water at a flowing well head pressure of 3,116 pounds per square inch at 44/64” choke size.

    In another notice, the PPLC disclosed that the company had made a hydrocarbon discovery in the first exploratory well, Margand X-I in Margand Block, Blochistan, that is operated by the company which holds 100 percent working interest there in.

    The well was spud on June 30, 2019 to a measured dept of 4,500 meters inside Chiltan Limestone. Based on the wireline logs, Modular Dynamics Testing was done which proved the presence of hydrocarbons.

    Accordingly, a Drill Stem Test was done in the Chiltan Limestone, during which the well flowed a maximum 10.7 million cubic feet per day of gas at 64/64 inches choke size at a flowing well head pressure of around 516 pounds per square inch with 132 barrels per day liquid. The nature of the liquid is being investigated. However, the well has the potential to flow at higher rates after an acid stimulation job.

    The company said that it was the first gas discovery in the Kalat Plateau and it had opened a new sub-basin for further hydrocarbon exploration.

    The discovery is the result of Company’s aggressive strategy of exploration of the frontier basins in order to open new avenues for hydrocarbons exploration and production in the province of Balochistan.

    The discovery will add to the company’s hydrocarbon reserves and will contribute in reducing the gap between the supply and demand of oil and gas in the country through exploitation of indigenous resources.

  • K-Electric warns of crisis on non-payment of dues by Sindh departments

    K-Electric warns of crisis on non-payment of dues by Sindh departments

    KARACHI: K-Electric – the power generation and distribution company – has demanded the Sindh government to pay the dues on urgent basis as non-payment will result into potential crisis for Karachi city.

    In a letter to Sindh Chief Minister Syed Murad Ali Shah the power utility requested for support in expediting the release of outstanding dues of different department of the provincial government.

    The K-Electric said it was facing severe cashflow issues due to the non-payment of dues by the government of Sindh. The company is working tirelessly to manage its routine operations and maintainance along with the purchase of power for the smooth functioning of the operations and to supply safe and reliable power to Karachi and its adjoining area.

    “However, this has been communicated to your office time and again that with large amount pending in the form of receivable from the government departments, KE is facing severe constraints in running its day to day operations and ensuring seamless supply of power to the city.”

    The power utility said that its receivable from different departments of the Sindh government had increased to Rs19.2 billion, of which Rs4.5 billion had been reconciled.

    In addition, Rs33.09 billion is also receivable on account of KW&SB out of which Rs28.5 billion in dues have been fully reconciled.

    In its summary to the Supreme Court of Pakistan, the Sindh government agreed to devise a payment plan for the reconciled amount, which was also made part of the apex court’s order.

    However, there have been notable delays in the payment against the mentioned reconciled amount and a payment plan is still awaited.

    As a result, K-Electric’s borrowing has increased substantially, and the situation is not sustainable for the company. Moreover, the capacity of banks to finance KE has been exhausted, inadvertently effecting KE’s working capital and long-term expansion plan.

    The KE said that it was not a defaulter of current payments to any of its fuel suppliers since 2012, despite the cashflow situation. However, to be able to continue to make payments to the suppliers and ensure smooth operations, it is essential that the release of outstanding dues is expedited.

    “… the non-payment of these dues will result into potential crisis for the city and the sustainability of KE’s operations,” it said.

  • Customs intelligence recovers Rs221.7 million from OGDCL for claiming wrong exemption

    Customs intelligence recovers Rs221.7 million from OGDCL for claiming wrong exemption

    KARACHI: Directorate of Customs Intelligence and Investigation, Karachi has recovered Rs221.7 million from Oil and Gas Development Company Limited (OGDCL) against avoiding payment of duty and taxes on import of seamless pipes.

    Officials at the directorate on Wednesday said that the oil and development company imported seamless pipes from China and got cleared through MCC Appraisement East, Karachi while availing exemption under SRO 678(I)/2004.

    “The GD was assessed and cleared by the collectorate under claimed exemption on customs duty at five percent and additional customs duty at four percent total amounting to Rs71.77 million against total assessed value of Rs797.53 million,” according to an official note sent to Federal Board of Revenue (FBR) Headquarters.

    It said that the scrutiny of GD revealed that the exemption was wrongly claimed as it was not admissible on the goods being locally manufactured.

    While realizing the factual position the representatives of OGDCL submitted pay orders amounting Rs221.71 million, which was drawn on National Bank of Pakistan (NBP).

    The payment of differential amount proved that the OGDCL had wrongly claimed exemption under the SRO 678(I)/2004 which resulted into loss of government revenue. The paid amount included Rs39.87 million as customs duty, Rs154.56 million as sales tax and Rs27.27 million as additional sales tax.

    The pay orders submitted by the company were sent to the clearance collectorate for deposit in the government treasury after assessment of the GD so that consignment may be de-blocked.

    The directorate said that the amount was deposited in the government treasury. However, role of customs officers/officials is being ascertained in the matter.

    Director I&I Irfan Javed praised the extraordinary efforts of Adnan Rafiq, Deputy Director, in detection of the evasion.

  • SRB suspends sales tax registration of Burshane Petroleum

    SRB suspends sales tax registration of Burshane Petroleum

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Burshane Petroleum Private Limited for defaulting payments for eight months and non-compliance of return filing for the same period.

    The SRB in a notice of suspension, said that short declaration of sales and non-payment of sales tax on services is contravention of Sales Tax on Services Act, 2011.

    The board said that record of the company revealed that it had M/s. Hascol Petroleum Limited declared purchases of Rs310.95 million including sales tax of Rs40.42 million from Burshane Petroleum Pvt. Ltd during February 2019 to September 2019, and had also paid sales tax on services amount of Rs32.339 million to M/s. Burshane Petroleum Pvt Limited for onward payment to SRB.

    However, Burshane Petroleum Pvt Limited have not filed their monthly sales tax return during February 2019 to September 2019 leading to sales suppression of Rs310.95 million and short payment of sales tax of Rs32.34 million.

    The SRB said that the suspension would only be revoked if the company takes following remedial action by November 28, 2019:

    To declare all sales and discharge all Sindh sales tax dues along with default surcharge.

    To e-file the true and correct monthly Sindh sales tax return for the tax periods.

    Further, the company has been directed to submit summary list along with copies of all invoices issued during January 2019 up to September 2019, copies of sales tax returns filed with other provincial sales tax authorities and copies of withholding certificates alongwith payment proofs.

    The SRB warned that in case of non-satisfactory response for failure to take remedial measures on or before November 28, 2019, further necessary action would be taken as envisaged under the Act.

  • PPL plans to spud 20 exploratory, developmental wells

    PPL plans to spud 20 exploratory, developmental wells

    KARACHI: Pakistan Petroleum Limited (PPL) has planned to spud 20 wells during fiscal year 2019/2020 out of which half of wells are exploratory and remaining are developmental.

    The management of PPL recent held a Corporate Briefing to discuss FY19’s financial performance and future outlook, analysts at Arif Habib Limited said on Tuesday.

    In Adhi field, first Nodal compressor is being commissioned and is expected to come online in 2HFY20.

    Due to structural problems at Dhok Sultan, the company had to side track which led to delay in production. The production has commenced from this well of 550 bopd and 0.7 mmcfd.

    The company plans to drill more from this well and expects higher production.

    The company expects gas production from Benari to commence in July 2020.

    The company has commenced oil production from Adhi South between 700-800 bopd.

    For Bolan, Mining and Zinc Project a Mineral Deposit Retention License has been has been issued by authorities. Application for Mineral License and EPCC contract is on the cards.

    Other than this, the company is also embarking upon other mineral mining projects since the company has expertise in mining business.

    Aiming for big discoveries, the company is concentrating on frontier areas, where three wells were spud.

    To recall, the company posted a profit after tax of Rs61,632 million (EPS: Rs27.18) in FY19 against Rs45,688 million (EPS: Rs20.15) in FY18, up by 35 percent YoY.

    As of Jun 30, 2019, the company’s portfolio consists of 18 producing fields (7 from operated and 11 from partner operated) and 47 exploratory blocks (28 from operated and 19 from partner operated).

    Operated exploratory blocks include Block-8 in Iraq. While partner operated blocks consist of 3 offshore blocks in Pakistan and one onshore block in Yemen.

    During FY19, the company witnessed discoveries of 11 exploratory wells.

    PPL became the first Pakistani E&P Company to drill a well outside the country, spudding Madain-1, Block-8 in Iraq in FY19.

    The company won 2 exploratory blocks in bid round in 2018 (Musakhel & Sorah). In July 2019, the company was provisionally granted Punjab Block.

    Furthermore, Pezu Block operated by OGDC was farm-in by the company. Keeping view of risks and higher costs, the company farmed-out Bela West partially.

    In Gambat South, GPF-IV plant phase I was successfully completed which started producing 25mmcfd of gas. At present, phase II of GPF-IV plant is being commissioned, which upon completion in a few months’ time will increase production to 45 mmcfd.

    The company in FY19 witnessed record mining of 228,000 baryte. The company sees mining business of the company a stepping stone for diversification.

    In order to deal with natural decline, the company undertook drilling of 7 developmental wells in its operated areas during FY19.

    In FY19, the company produced 16,077 bop of oil and 870 mmcfd of gas. In oil production, major contribution came from TAL block contributing 37 percent, followed by Nashpa Block 35 percent and Adhi 22 percent.

    In gas production, Sui was the major contributor adding 44 percent to total gas production, tagged with 24 percent from Kandhkot and 23 percent from partner operated and others.

    The company has been hit hard by the mounting circular debt. Due to this, company’s future plans for development and dividend were affected.

    In FY19, company’s trade debt reached a historic high level of PKR 227 billion. accordingly, the company anticipates preferential allocation of funds from the government for settlement of this issue.

    For FY20, the company is targeting production of around 1 BCFDe.

  • OGDCL clarifies shale gas discovery

    OGDCL clarifies shale gas discovery

    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.

    (more…)
  • World Bank’s IFC signs financing agreement to build six power projects in Pakistan

    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.

  • PPL announces highest-ever Rs61.6 billion after tax profit with record 11 discoveries

    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.

  • Mari Petroleum sets up subsidiary at Dubai Free Zone

    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.