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  • PPL declares decline in net profit to Rs38.12 billion during nine months

    PPL declares decline in net profit to Rs38.12 billion during nine months

    KARACHI: Pakistan Petroleum Limited (PPL) on Thursday declared decline in net profit to Rs38.12 billion for the nine-month period ended March 31, 2021.

    According to unconsolidated financial results submitted to Pakistan Stock Exchange (PSX), the petroleum company declared Rs38.12 billion during first nine months (July – March) 2020/2021 as compared with Rs39.23 billion in the corresponding period of the last fiscal year.

    Revenue of the company fell to Rs112.23 billion during the period under review as compared with the revenue of Rs126.23 billion in the same period of the last fiscal year.

    Operating expenses of PPL also eased to Rs32.45 billion during the nine-month period ended March 31, 2021 as compared with Rs33.04 billion in the same period of the last fiscal year.

    The company paid royalties and other levies to the tune of Rs16.67 billion during first nine months of the current fiscal year as compared with Rs18.88 billion in the corresponding period of the last fiscal year.

    Exploration expenses fell drastically during the period under review. The expenses under this head fell to Rs3.62 billion during July – March 2020/2021 as compared with Rs13.76 billion in the same period of the last fiscal year.

    The net profit of the company for the quarter ended March 31, 2021 also fell to Rs11.88 billion when compared with Rs14.67 billion in the same quarter of the last year.

  • PPL declares 18pc decline in gross profit in first half

    PPL declares 18pc decline in gross profit in first half

    KARACHI: Pakistan Petroleum Limited (PPL) on Friday declared 18 percent decline in its gross profit for the period July – December 2020.

    However, drastic reduction in exploration expenses and other charges the net profit (after payment of tax) of the company managed to post a growth of 7 percent for the period.

    The company declared Rs42.2 billion as gross profit for the first half of 2020/2021 as compared with Rs51.39 billion in the corresponding half of the last fiscal year.

    The major fall in gross profit may be attributed to revenue which fell to Rs75.54 billion for the six month period ended December 31, 2020 as compared with Rs85.41 billion in the same period of the last fiscal year.

    The company declared profit after tax of Rs26.27 billion for the first half of the current fiscal year as compared with Rs24.55 billion in the same period of the last fiscal year.

    The growth in after tax profit can be attributed to drastic reduction in expenses of the company.

    The cost of exploration has been reduced to Rs3.146 billion during the first half of the current fiscal year as compared with Rs11.74 billion in the corresponding period of the last fiscal year.

    The cost of other charges also fell to Rs3.88 billion for the half under review as compared with Rs7.32 billion in the corresponding half of the last fiscal year.

    PPL announced earnings per share at Rs9.64 for the first half ended December 31, 2020 as compared with Rs9.02 EPS declared in the same half of the last year.

  • 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.

  • 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.

  • 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.

  • 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.

  • Preliminary report on Karachi deep sea drilling submitted

    Preliminary report on Karachi deep sea drilling submitted

    KARACHI – A multinational joint venture comprising ENI, Exploration and Production Pakistan BV (EEPP), and Pakistan Petroleum Limited (PPL) has initiated the preliminary phase of offshore drilling for oil and gas in Karachi’s ultra-deep waters.

    (more…)