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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.

  • Hubco initiates agreement with Central Power Purchasing Agency

    Hubco initiates agreement with Central Power Purchasing Agency

    KARACHI: The Hub Power Company Limited (Hubco) on Tuesday said that it has initiated agreement with Central Power Purchasing Agency (Guarantee) Limited (power purchaser) in furtherance of the Memorandum of Understanding dated August 21, 2020.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said that under the agreement, the payment of overdue receivables is an integral part of the agreement and the payment mechanism envisaged is two instalments, with 40 percent of the overdue receivables payable within 30 business days of signing the Agreement (comprising 1/3rd cash and 2/3rd financial instruments of PIBs and Sukuks) and the remaining 60 percent payable 6 months thereafter through the same method as that of the first instalment.

    In addition, payment of all invoices will be made in order of its submission so that invoices that have been outstanding the longest (in whole or in part) shall be paid first.

    At the request of the Government of Pakistan, in the larger national interest and sectoral sustainability, the Parties have agreed to reduce the existing Fixed Operating Costs Element by 11 percent, whilst keeping the existing arrangement of indexations.

    At the same time, the Parties have agreed to discontinue the US$ Exchange rate and US CPI indexation on the Project Company Equity and fix the same on National Bank of Pakistan’s TT/OD selling PKR/USD exchange rate prevailing as on August 21, 2020 and US CPI for the month of August 2020; till the current exchange rate reaches that of August 21, 2020 i.e. PKR 168.60/USD, the existing arrangement under Power Purchase Agreement (PPA) for the current half year shall apply for future billing.

    The parties have also agreed to engage without delay, on signing of the Agreement, in good faith negotiations and discussion and use their best endeavors to achieve pre-mature termination of the PPA, which will be mutually beneficial, resulting in compensation to the Company, while saving GOP substantial sums in lieu of capacity payments till the expiry of the Power Purchase Agreement (PPA).

    In parallel, the Parties have also agreed that certain outstanding dispute(s) shall be resolved through arbitration under the PPA. The terms of the Agreement are subject to approval of the Board of Directors of Hubco, the Federal Cabinet and execution of a final binding agreement.

  • OGDCL announces gas discovery at Sial-1 Well in Sindh

    OGDCL announces gas discovery at Sial-1 Well in Sindh

    KARACHI – The Oil and Gas Development Company Limited (OGDCL) has announced a significant discovery of gas condensate from its Sial-1 exploratory well located in the Hyderabad district of Sindh. This development marks a notable milestone in the company’s ongoing drive to enhance domestic hydrocarbon exploration.

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  • Hascol Petroleum BOD approves authorized share capital increase to Rs50 billion

    Hascol Petroleum BOD approves authorized share capital increase to Rs50 billion

    KARACHI: The board of directors of Hascol Petroleum Limited has approved increase in authorized share capital of the company to Rs50 billion from Rs10 billion, according to a communication sent to Pakistan Stock Exchange (PSX) on Monday.

    The communication said that at an emergent meeting of the board of director (BOD) of Hascol Petroleum Limited held on January 29, 2021, the board of directors approved the increase in the authorized share capital of the company from Rs10 billion to Rs50 billion, subject to obtaining the requisite approvals from the shareholders of the company, and in that respect to call and hold an extraordinary general meeting of the company on February 23, 2021 to obtain the approval of the shareholders/members of the company for the increase in the authorized share capital of the company and the corresponding amendments to the memorandum and articles of association of the company.

  • Petrol price increased to Rs111.90 per liter

    Petrol price increased to Rs111.90 per liter

    The government has announced an increase in the prices of petrol and other petroleum products, citing rising international oil prices as a key factor.

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  • OGDCL-PPL awarded exploration rights of new block in Balochistan

    OGDCL-PPL awarded exploration rights of new block in Balochistan

    KARACHI: The government has provisionally awarded exploration rights of a new block situated in the Balochistan Province to a joint venture comprising Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL), a statement said on Friday.

    The statement issued by PPL said that the government had provisionally awarded a new block ‘Suleiman (Block No. 3069-9) situated in Balochistan for exploration rights to the joint venture formed between OGDCL and the company.

    “OGDCL and the Company [PPL] each hold fifty percent working interest in the block which will be operated by OGDCL, subject to the execution of a Petroleum Concession Agreement and issue of an Exploration License,” the statement added.

  • SHC dismisses petition challenging KE privatization

    SHC dismisses petition challenging KE privatization

    KARACHI: Sindh High Court (SHC) has dismissed a constitutional petition that has challenged the privatization of K-Electric, the power distribution company.

    In a note sent to Pakistan Stock Exchange (PSX) on Monday, K-Electric Limited said that the court had dismissed constitutional petition bearing No. D1511-2012 titled as KESX Labour Union and Others vs. Federation of Pakistan and others’ along with related petitions on January 21, 2020, whereby the court had dismissed the said petition through which the privatization of the K-Electric Limited was challenged.

    The judgment was announced in the open court. However, the certified copy of the afore-noted judgment is still awaited, K-Electric said.

  • Petrol per liter price increased to Rs109.20

    Petrol per liter price increased to Rs109.20

    Islamabad: The government on Friday announced increase in prices of petroleum products for next fortnight and fixed Rs109.20 for per liter petrol, a statement said.

    The new prices will be implemented with effect from January 16, 2021.

    The price of petrol has been increased by Rs3.2 per litter to Rs109.20 from previous rate of Rs106.

    The rate of high speed diesel has been enhanced by Rs2.95 per liter to Rs76.65 from Rs73.65.

    The price of kerosene oil has been increased by Rs3 per liter to Rs76.65 from Rs73.65.

    The rate of light diesel oil has been increased by Rs4.42 per liter to Rs76.23 from Rs71.81.

    The new prices of petroleum products are effective till January 31, 2021.

  • Authorities seal 609 illegal pumps; recover 4.5 million petrol, diesel

    Authorities seal 609 illegal pumps; recover 4.5 million petrol, diesel

    Islamabad: Pakistan Customs with the assistance of law enforcement agencies has sealed around 609 illegal pumps selling smuggled petroleum products.

    Besides, around 4.5 million liters of smuggled petrol and diesel have also seized during the operation, a statement issued by the PM office said on Friday.

    The authorities have initiated crackdown against the illegal fuel stations on the directives of Prime Minister Imran Khan.

    An across-the-board and non-discriminatory action under the ministry of interior is on full swing, which has started yielding positive results, the PM office said.

    In case, owners of the sealed fuel station remain unable to produce authentic documents within seven days of the action, the State will be authorized to confiscate their pump along with other properties under the Custom Act, it said.

    Non-production of documents will deem the fact that the properties were acquired through illegal means of smuggling, it added.

  • Oil production falls by 6 percent in second quarter of current fiscal year

    Oil production falls by 6 percent in second quarter of current fiscal year

    KARACHI: Pakistan’s Oil production fell by 6 percent year on year (YoY) during second quarter of the current fiscal year to 76,331 barrels of oil per day, analysts said on Thursday.

    This has been attributed to decline in production of Tal block fields like Mardankhel and Makori Deep by 27 percent and 31 percent YoY, respectively. Oil production during 1HFY21 fell at the same rate of 6 percent YoY.

    Production from Chanda, Maramzai, and Makori East increased in range of 5-46 percent YoY. Chanda’s production increased due to induction of Chanda-5 well. Production from Nashpa increased 7 percent QoQ as field was on an annual turnaround in the last quarter (Sep 03-09, 2020).

    As per PPIS data, five new fields were inducted to production line during 2QFY21 namely Baqa (300+ bopd; operated by UEP), Saand (100+ bopd; operated by OGDC), Tando Allay Yar SW (90+ bopd; operated by OGDC), Bolan East (800+bopd; operated by MARI) and Mangrio (200+bopd; operated by OGDC).

    Pakistan gas production declined by 4 percent YoY to 3,409 mmcfd as flows from KPD, Kandhkot and Qadirpur fell in the range of 6-18 percent. During 1HFY21, production declined by 3 percent YoY.

    During 2QFY21, Kandkhkot field’s production declined due to lesser offtake from Gencos. Mari field filled those Kandhkot fields flows as depicted from 12 percent YoY increase in its production.

    Four new fields were added to production line, namely Saand (7+ mmcfd; operated by OGDC), Tando Allah Yar SW (9+ mmcfd; operated by OGDC) and Mangrio (3+ mmcfd; operated by OGDC) and Baqa (1mmcfd, operated by UEPL).

  • Gas crisis: one day complete shutdown announced for captive power units

    Gas crisis: one day complete shutdown announced for captive power units

    KARACHI: The Sui Southern Gas Company Limited (SSGC) on Tuesday announced a complete shutdown of supply for industries during next 24 hours considering the ongoing gas crisis.

    According to a statement a 100 percent closure to be observed by captive power units of all industries including export oriented starting 0000 hours on Wednesday January 13, 2021 to 0000 hours on Tuesday January 14, 2020.

    The SSGC informed all industrial association that presently its franchise is experiencing an emergency situation. “Our two major gas fields have faced technical problems and curtailed 55 MMCFD gas,” it said, adding that SSGC system is completely depleted and severe low pressure is being faced across the franchise, particularly, in Karachi.

    As per CCOE directive, SSGC announced one-day closure for Sunday, January 10, 2021 and the same was withdrawn to accommodate the consumers after the electricity shutdown in the whole country.

    “Considering the above gas crisis, request our esteemed consumers to extend their cooperation by curtailing their gas consumption for 24 hours, starting 0000 hours on Wednesday January 13, 2021 till 0000 hours on Thursday January 14, 2021.