PPL to relinquish exploratory block in Yemen

KARACHI: Pakistan Petroleum Limited (PPL) has decided to relinquish its exploratory block in Yemen due to security issues, while the company has earmarked $120 million to continue its aggressive exploration activities in all the sedimentary basins across the country, its senior official said on Friday.

Saeed Ullah Shah, managing director and chief executive officer of Pakistan Petroleum Limited told the company’s annual

general meeting that the exploration in the country would focus on frontier and offshore areas.

PPL has two blocks in Yemen – Block-3 and Block-29.

The Block-29 was acquired in the year 2008 and has been in a force majeure state for the last couple of year.

“PPL and the operator of Block-29, OMV, have decided to relinquish the block and an application in this regard has already been submitted to the Yemen authorities,” Shah said.

The production sharing agreement has been terminated and efforts are being made for release of the bank guarantees.

“PPL has also planned 12 exploratory wells in the current fiscal year, and the company is fully geared up to participate in the forthcoming exploration bid round, to acquire new blocks to further expand and diversify its exploration portfolio,” Shah added.

PPL’s chief executive told the meeting that a proposal had been forwarded to the government for a joint pilot project with the Oil and Gas Development Company (OGDC) involving a well to exploit shale gas reserves.

“Studies suggest that Pakistan has shale

reserves to the tune of 95 billion cubic feet and these are technically recoverable,” he said.

Members approved financial statements for the fiscal year ended June 30 together with the auditor’s report as well as a final cash dividend of 15 percent on ordinary shares together with 15 percent bonus shares.

Chairman Salman Akhtar presided over the proceedings and said Pakistan Petroleum Limited continued an aggressive exploration and development strategy in line with the national imperative of replenishing reserves and enhancing production.

He acknowledged management and staff’s efforts towards attaining the company objectives.

Shah said the company earned the second highest profit after tax in its history, which stood at Rs45.7 billion during 2017/18 due to a focus on significant achievements.

The CEO said drilling of 33 wells, including 18 exploratory wells and the exploration activities led to a discovery in Adhi South along with seven oil and gas discoveries subsequent to the reporting year.

Shah said production efficiencies have been improved, which led to output increase from existing and new assets to 988 million metric cubic feet/day in 2017/18.

He also said the highest-ever production of 206,921 metric tonnes barytes from Bolan Mining Enterprises.

He reaffirmed Pakistan Petroleum Limited’s resolve to raise the profile of deserving stakeholder communities in operational and urban areas through need-based corporate social responsibility projects.

Shah also mentioned staff development initiatives through in-house capacity building programs.

Shah also emphasised on enhancing output from producing fields and bringing new discoveries online, including tight gas reserves along with renewed focus on exploring shale gas potential.