Pakistan Oilfields Limited is a leading oil and gas exploration and production company                                    ...
ContentsA nnual Repor t and Financial Sta temen ts 2 010                                                                  ...
Mission                                                   VisionA nnual Repor t and Financial Sta temen ts 2 010          ...
StrategyA nnual Repor t and Financial Sta temen ts 2 010                                                                  ...
Board of Directors                                                                                                        ...
Products                                                                                                                  ...
Code of Conduct                                         It is the Company’s policy to conduct its operations in accordance...
Global Compact                                                                          Management Committees             ...
Net sales achieved during                                                   the year are the highest                      ...
The Company continues to play a vital role in the oil and gas sector of the                                               ...
The Company has                                                                       made a profit afterA nnual Repor t a...
Financial Results                                                                                                 Rs (000)...
Crude Oil Production                                                                                                      ...
Final report 2010
Final report 2010
Final report 2010
Final report 2010
Final report 2010
Final report 2010
Final report 2010
Final report 2010
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Final report 2010


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Final report 2010

  1. 1. Pakistan Oilfields Limited is a leading oil and gas exploration and production company listed on all the three stock exchanges of Pakistan. The Company’s prime focus is to deliver performance through excellence in the field of exploration, drilling and production of crude oil and gas. Pakistan Oilfields Limited (POL), a subsidiary of The Attock Oil Company Limited (AOC), wasA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 incorporated on November 25, 1950. AOC was founded in 1913 and made its first oil discovery in 1915 at Khaur, District Attock. AOC has, therefore, pioneered exploration and production of oil and gas in this region nearly a century ago. In 1978, POL took over the exploration and production business of AOC. Since then, POL has been investing independently and in joint venture with various exploration and production companies for the search of oil and gas in the country. In addition to exploration and production of 2 oil and gas, POL plants also manufacture LPG, 3 solvent oil and sulphur. POL markets LPG under its own brand named POLGAS as well as through its subsidiary CAPGAS (Private) Limited. POL also operates a network of pipelines for transportation of its own as well as other companies’ crude oil to Attock Refinery Limited. In 2005, the Company acquired a 25% share in National Refinery Limited, which is the only refining complex in the country producing fuel products as well as lube base oils.
  2. 2. ContentsA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 Company Information Directors’ Report Consolidated Financial Statements 20 Directors’ Report 04 Vision, 117 Consolidated Auditor’s Report to the Members 05 Mission Shareholders’ Interest 118 Consolidated Financial Statements 07 Strategy 124 Notes to the Consolidated Financial 08 Board of Directors 43 Pattern of Shareholding Statements 09 Corporate Information 48 Statement of Value Added 4 10 11 Products Core Values 50 52 Vertical Analysis Horizontal Analysis Notice of Annual General 5 12 Code of Conduct 54 Six Years at a Glance Meeting/Site Map 13 Award 61 Balance Sheet Composition 14 Global Compact 62 Shareholding in Exploration Licenses 171 Notice of Annual General Meeting 15 Management Committees Site Map of AGM Location Financial Statements Form of Proxy Chairman’s Statement 64 Review Report to the Members 17 Chairman’s Statement 65 Statement of Compliance 19 Financial Highlights 67 Auditor’s Report to the Members 68 Financial Statements 74 Notes to the Financial Statements
  3. 3. Mission VisionA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 We aim to discover and develop new hydrocarbon reserves and enhance To be the leading oil and gas production from existing exploration and production reserves through the Company of Pakistan with the application of the best highest proven hydrocarbon available technologies and reserves and production, and expertise. which provides optimum value to all stakeholders. In achieving our aim, we will 4 maximize the return to our 5 shareholders, fully protect the environment, enhance the well-being of our emplyees and contribute to the national economy.
  4. 4. StrategyA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 Pakistan Oilfields Limited is a growth oriented leading exploration and production company of Pakistan. Our prime focus is to deliver performance through excellence in the field of exploration and exploitation. We plan to increase our current level of oil and gas production through the application of innovative technology to obtain maximum 6 productivity. Our long term goal is to sustain production 7 by regularly adding new reserves. Our ultimate goal is to maximize returns to our shareholders and provide optimum value to all stakeholders.
  5. 5. Board of Directors Corporate Information Shareholder Enquiries For enquiries about yourA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 shareholding, including Dr. Ghaith R. Pharaon Shuaib A. Malik Directors Chief Financial Officer Auditors and Tax Advisor information relating to Chairman and dividends or share certificates, Chief Executive Dr. Ghaith R. Pharaon Mr. Bilal Ahmad khan A.F. Ferguson & Co., please: Alternate director: Chartered Accountants E-mail to: Mr. Iqbal A. Khwaja or Company Secretary Legal Advisors Write to: Mr. Laith G. Pharaon Alternate director: Syed Khalid Nafees Zaidi Khan & Piracha The Company Secretary, Mr. Babar Bashir Nawaz Pakistan Oilfields Limited Ali Sibtain Fazli & Associates P.O.L. House, Morgah, Rawalpindi, Pakistan Mr. Wael G. Pharaon Audit Committee Alternate director: Registered Office Laith G. Pharaon Wael G. Pharaon Arif Kemal Abdus Sattar Annual Report Mr. Muhammad Abdullah Yusuf Mr. Abdus Sattar 8 9 Pakistan Oilfields Limited The annual report may be Mr. Arif Kemal Mr. Iqbal A. Khwaja P.O.L. House, Morgah, Rawalpindi downloaded from the Company’s (Alternate director to website: Mr. Abdus Sattar Dr. Ghaith R. Pharaon) Telephone: +92 51 5487589-97 Fax: + 92 51 5487598-99 Mr. Mohammad Raziuddin Mr. Babar Bashir Nawaz or (Alternate director to E-mail: printed copies may be obtained Mr. Shuaib A. Malik Mr. Laith G. Pharaon) Website: by writing to: Chairman & Chief Executive The Company Secretary, Pakistan Oilfields Limited Mohammad Raziuddin Iqbal A. Khwaja Babar Bashir Nawaz Muhammad Abdullah Yusuf P.O.L. House, Morgah, Rawalpindi, (Alternate director to (Alternate director to (Alternate director to Pakistan Dr. Ghaith R. Pharaon) Mr. Laith G. Pharaon) Mr. Wael G. Pharaon)
  6. 6. Products Core Values Leadership We value leadership qualities with the necessary managerial and professional competence coupled with integrity, energy and the drive to challenge the Crude Oil Natural Gas LPG Solvent Oil Sulphur status quo. Continuous quality improvement We strongly believe that quality and an unyielding commitment to continuous improvement are indispensable ingredients to achieving success. At POL, we encourage and promote an environment conducive to the development of breakthrough ideas leading to innovative solutions.A nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 An oily, flammable liquid that Natural mixture of gaseous LPG is a mixture of Solvent oil is one Solid Sulphur occurs occurs naturally in deposits, usually hydrocarbons found issuing gases, mainly propane of the five major oil principally in three forms, all Ethics and integrity beneath the surface of the earth. from the ground or obtained and butane, produced products closely of which are brittle, yellow Honesty, ethical behaviour and integrity combined with the highest It consists principally of a mixture from specially driven wells. commercially from related to people’s in color, odorless, tasteless, professional and personal standards form the cornerstone of all our of hydrocarbons, with traces of The composition of natural gas petroleum and stored daily life. Its and insoluble in water. It is activities. various nitrogenous and sulphurous varies in different localities. under pressure to application sectors a chemically active element compounds. During the past Its chief component, methane, keep it in a liquid also have a constant and forms many compounds, 600 million years, incompletely usually makes up from 70% state. The boiling expansion. There are both by itself (sulfides) and in Profitability decayed plant and animal remains to 95% and the balance is point of liquefied also extensive uses combination We believe in maximizing the return to our shareholders and enhancing the have become buried under thick composed of varying amounts petroleum gas varies in rubber, leather and with other elements. It is part long term profitability of the Company through the application of the best layers of rock. It is believed that of ethane, propane, butane from about -44°C adhesive sectors. of many organic compounds. available technology and expertise. petroleum consists of the remains of and other hydrocarbon to 0°C, so that the these organisms but it is the small compounds. Although pressure required Sulphur is used in black microscopic plankton organism commonly associated with to liquefy it is gunpowder, matches and Employees, growth and development 10 remains that are largely responsible deposits, it also occurs considerable and the fireworks; in the vulcanization We believe in the creation of an environment focused on encouraging and 11 for the relatively high organic carbon separately in sand, sandstone containers for it must of rubber; as a fungicide empowering employees to contribute to the Company’s success through content of fine-grained sediments and limestone deposits. be of heavy steel. and insecticide; and in the personal growth and development. which are the principle source rocks Some geologists theorize that Common uses are for treatment of certain skin for petroleum. natural gas is a byproduct of cooking and heating diseases. The principal use of decaying vegetable matter and lighting. It is also Sulphur is in the preparation Community involvement Little use other than as lamp fuel in underground strata, used for powering of its compounds. The most We strongly believe actively involving the communities in which we operate was made of petroleum until the while others think it may be automotive vehicles. important Sulphur compound for the advancement of their cultural and social life. development of the gasoline engine primordial gases that rise up LPG is an attractive is Sulphuric acid. and its application to automobiles, from the mantle. Because of its fuel for internal- trucks, tractors and airplanes. Today flammability and high calorific combustion engines Safety, health and environment the world is heavily dependent value, natural gas is used because it burns with We care about the health and safety of our employees and of the on petroleum for motive power, extensively as an illuminant little air pollution and communities in which we conduct our business. We remain deeply lubrication, fuel, dyes, drugs and many and a fuel. little solid residue. synthetics. committed to respect and protect the environment.
  7. 7. Code of Conduct It is the Company’s policy to conduct its operations in accordance with the highest business ethical considerations, to comply with all statutory regulations Recognition and to conform to the best accepted standards of good corporte citizenship. This policy applies to all directors and employees of the Company regardless of Environment Excellence Award 2010 fuction, grade or standing. Organized by National Forum for Environment & Health  The Company’s activities and operations will be carried out in strict  Corporate funds and assets will be utilized solely for lawful and proper compliance with all applicable laws and the highest ethical standards. The purposes in line with the Company’s objectives. directors and employees will ensure that the Company deals in all fairness with its customers, suppliers and competitors.  No false or artificial entries shall be made in the Company’s books and records for any reason, and all financial transactions must be accurately  Employees, irrespective of their function, grade or standing, and theA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 and properly accounted for in the books and records. directors must avoid conflict of interest situations between their direct or indirect (including members of immediate family) personal interests and  All benefits provided to the directors and employees of Pakistan Oilfields the interest of the Company. Limited in addition to their standard remuneration will be awarded in full compliance with the Company’s official policies.  Employees must notify their direct supervisor of any actual or potential conflict of interest situation and obtain a written ruling as to their  Pakistan Oilfields Limited will respect the privacy of data relating to individual case. In case of directors, such ruling can only be given by the individual persons (whether employees or third parties) which it may hold Board, and will be disclosed to the shareholders. or handle as part of its information processing activities or otherwise.  The directors and employees may not take advantage of the Company’s information or property, or their position with the Company, to develop  Employees will maintain the confidentiality of the Company’s and its inappropriate personal gains or opportunities. They may, however, receive customers’ confidential information which is disclosed to them. gifts of token value or accept invitations only if such gifts or invitations  Pakistan Oilfields Limited will support a precautionary approach to have no influence on their decision making and are not illegal under any applicable law. No director or employee may receive from any customer, environmental challenges, and, within its sphere of influence, undertake 12 13 supplier or business associate of Pakistan Oilfields Limited cash, gifts or initiatives to promote greater environmental responsibility and encourage invitations with other than nominal monetary value. the development and diffusion of environmentally friendly technologies.  Trading by directors and employees of the Company in Pakistan Oilfields  Pakistan Oilfields Limited will support and respect the protection of Limited shares is possible only in accordance with the more detailed international human rights within its sphere of influence, in particular the guidelines issued from time to time by corporate management in effective elimination of all sorts of compulsory labour and child labour, accordance with applicable laws. and it will make this a criterion in the choice and management of its suppliers and sub-contractors.  In its relations with governmental agencies, customers and suppliers, the Company will not, directly or indirectly, engage in bribery, kick-backs,  Pakistan Oilfields Limited will not discriminate against any employee for payoffs, or any other corrupt business practices. any reason such as race, religion, political convictions or sex, and will treat  The use, directly or indirectly, of Company funds for political contributions everyone with dignity and with full respect for their private lives. This is to any organization or to any candidate for public office is strictly expected also to apply to relations between members of personnel. prohibited.
  8. 8. Global Compact Management Committees Human Rights Various committees have been constituted to look after the operational and financial matters of the Company. A brief description of the composition and terms of Principle 1: Businesses should support and respect the protection of reference of the various committees are as follows: internationally proclaimed human rights; and Principle 2: Make sure that they are not complicit in human rights abuses. Executive Committee for formulating a risk management response to Budget Committee effectively address and manage risks. The Committee meets under the chairmanship of The Budget Committee reviews and approves the the Chief Executive to coordinate the activities and Business Strategy Committee annual budget proposals prior to being presented Labor Standards operations of the Company. for the approval of the Board. The Committee alsoA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 The Business Strategy Committee is responsible for monitors utilization of the approved budget. Principle 3: Businesses should uphold the freedom of association and the Review and Appraisal Committee preparing the strategic plan for the future growth effective recognition of the right to collective bargaining; of the Company. The Committee also reviews major Safety Committee The Review and Appraisal Committee is responsible projects and formulates recommendations after Principle 4: The elimination of all forms of forced and compulsory labor; for ensuring that procurement of assets, goods evaluation from technical and commercial aspects. The Safety Committee reviews and monitors and services is made in accordance with Company Company’s wide safety practices. It oversees the policies and procedures on competitive and Systems and Technology Committee safety planning function of the Company and is Principle 5: The effective abolition of child labor; and transparent terms. responsible for safety training and awareness The Systems and Technology Committee is initiatives. The Committee is also responsible for Principle 6: The elimination of discrimination in respect of employment and Risk Management Committee responsible for developing and implementing an IT publishing the Company’s monthly safety newsletter occupation. strategy for the Company. The Committee oversees “Safety Bulletin”. The Risk Management Committee is responsible the automation of processes and systems in line with for ensuring that procedures to identify and latest technology. The Committee is also responsible continuously update risks are in place. The for development of contingency and disaster Environment Committee oversees the process of assessment of recovery plans. the possible impact and likelihood of occurrence of 14 Principle 7: Businesses should support a precautionary approach to identified risks. The Committee is also responsible 15 environmental challenges; Principle 8: Undertake initiatives to promote greater environmental responsibility; Principle 9: Encourage the development and diffusion of environmentally friendly technologies; and Anti-Corruption Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.
  9. 9. Net sales achieved during the year are the highest During the year the ever in the history of the Company earned a profit of Company. Rs 7.437 billion (2009: RsA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 5.618 billion), an increase of 32.4% over last year. Total cash dividend I am happy to report that payout to the shareholders the enhanced profits are at Rs 6 billion (including driven by a healthy increase in production numbers in proposed final dividend) is addition to the impact of the our highest ever. higher prices. 16 17 We believe that Pakistan Oilfields Limited has a strong Cash flows from foundation to maintain future operating activites at strategic momentum. Rs 9.3 billion increased by 69.4% and are the highest ever in the Company’s history. Chairman’s Statement
  10. 10. The Company continues to play a vital role in the oil and gas sector of the country. During the year the Company saved foreign exchange for the country in excess of US$ 410 million (2009: US$ 229 million). In the name of Allah, DIVIDEND OUTLOOK Financial HighlightsA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 Most Gracious, Most Merciful. The Directors have recommended a final cash dividend We look forward to the future with the confidence On behalf of the Board of Directors, it gives me @ 175% (Rs 17.50 per share). This is in addition to an that comes from knowing that we have the resources, + 27.04% - 30.79% immense pleasure to welcome you to the Fifty Ninth interim cash dividend of 80% (Rs 8 per share) already both financial and human, to seize new opportunities Annual General Meeting of the Company and to present Net sales Exploration, development declared and paid to the shareholders thereby making and drive performance to new levels. We believe that the Company’s Annual Report and Audited Financial & workover expenditure Statements for the year ended June 30, 2010. a total cash dividend of Rs 25.50 per share. Pakistan Oilfields Limited has a strong foundation to maintain future strategic momentum. 2010 17,845 2010 4,832 RESULTS EXPLORATION, 2009 14,047 2009 6,982 On behalf of the Board I would like to thank all DEVELOPMENT AND WORKOVER shareholders for their continued support. 2008 16,739 2008 3,474 During the year the Company earned a profit of ACTIVITIES Rs7.437 billion (2009: Rs 5.618 billion), an increase (Rs in million) (Rs in million) of 32.4% over last year. I am happy to report that the Our drilling program in 2010 delivered success in enhanced profits are driven by a healthy increase in 18 Bela-1, Manzalia-8, Makori-3 and Ratana well-2 (Deep 19 production numbers in addition to the impact of the re-entry). Presently five wells in our operated and non- higher prices. operated joint ventures are under drilling and we are + 31.28% +32.38% I am also pleased to inform you that net sales achieved hopeful of finding new discoveries of oil and gas. Shuaib A. Malik during the year are the highest ever in the history of Chairman & Chief Executive Gross profit Earnings per share the Company at Rs 17.8 billion and with the successful commissioning of the Manzalai Central Gas Processing OUR PEOPLE Damascus, Syria Facility further discoveries coming on-line from the Tal September 30, 2010 2010 10,886 2010 31.44 Block and the potential from Domial, we expect this On behalf of the Board, I would like to thank all 2009 8,292 2009 23.75 trend to continue in the future insha’Allah. our employees for their dedication, hard work and 2008 10,583 2008 36.43 commitment, which has contributed to this year’s The results of the Company’s operations are dealt with results. There is much more to do, and I look forward to (Rs in million) in further detail in the annexed Directors’ Report and (Rs per share) working with them, in my additional capacity as Chief Financial Statements. Executive of the Company, as we move forward.
  11. 11. The Company has made a profit afterA nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 tax of Rs 7,437 million (2009: Rs 5,618 million), which is higher by 32.4% from the last year. Earnings per share is Rs 31.44 20 21 (2009: Rs 23.75 per share). Directors’ Report
  12. 12. Financial Results Rs (000) These are summarized below: Profit for the year after providing for all expenses including depreciation, exploration, amortization and workers’ funds. 9,590,766 Less: provision for taxation 2,154,000 Profit after tax 7,436,766 The Directors During the period, the “Manzalai Central Processing Facility” was commissioned successfully and started contribution to the country’s energy needs and also to the Company’s profitability. This facility is currently producing 240 million standard cubic feet per day (mmscfd) of gas and 4,600 barrels per day (bpd) of condensate. have pleasure in The Company has made a profit after tax of Rs 7,437 million (2009: Rs 5,618 million), which is higher by 32.4% from the last year. Earnings per share is Rs 31.44A nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 (2009: Rs 23.75 per share) presenting their The Company is in continuous process to improve its reserve base through aggressive exploration activities. The details of the exploration activities are covered in Annual Report and detail by each geographical area later in this report. Audited Financial Cash flows Contribution towards the economy Dividend Cash and cash equivalents increased by Rs 2,372 The Company continues to play a vital role in the oil The Directors have recommended a final cash Statements of the million during the year (2009: decrease of Rs 3,479 million). Cash flows provided from operating and gas sector of the Country. During the year the Company saved foreign exchange for the country dividend @175% (Rs17.50 per share). This is in addition to interim cash dividend @ 80% (Rs 8 per Company for the activities at Rs 9,297 million were 69.4% higher as compared to last year due to a combination of in excess of US$ 409.5 million (2009 : US$ 228.9 million). The contribution to the national exchequer share) already declared and paid to the shareholders thereby making a total cash dividend of 255% for year ended June factors including enhanced sales and comparatively lower exploration expenditure. in the shape of royalty and other government levies was Rs 5,021 million (2009: Rs 4,475 million). the year 2009-10 (2008-09: cash dividend of Rs18 per share). 30, 2010. 22 23 Production 2009 – 10 2008 - 09 Crude Oil/Condensate (US Barrels) 1,472,825 1,352,630 +41.67% Cash dividend per share Gas (Million Cubic Feet) 22,641 13,834 2010 25.50 LPG 2009 18.00 (Metric Tones) 34,119 34,097 2008 16.00 Sulphur (Metric Tones) 1,131 2,033 (Rs per share) Solvent Oil (US Barrels) 29,777 30,934
  13. 13. Crude Oil Production The following is a comparison of production from the Company’s 100% own fields and its share from Exploration 2010 Operating Cash Flows Market Capitalization all operated and non-operated joint ventures: 2009 Crude Oil Price Movement 2010 1,473 The exploratory well Domial (side-track-2) was 2010 9,297 2010 51,070 (US$ per barrel) drilled down to 16,405 ft. Due to high pressure 2009 1,353 The Company’s share in production, including 150 2009 5,489 2009 34,512 the well was killed and temporarily plugged. The that from joint ventures, for the year under review 2008 1,846 orders for optimum completion equipment have 2008 9,144 2008 71,918 averaged at 4,035 bpd of crude, 62.03 mmscfd of 120 2007 2,163 been placed and the well completion followed by 2007 5,387 2007 62,488 gas, 82 bpd of solvent oil, 93.48 metric tons per commercial testing is expected by January 2011. 65,996 2006 2,583 day (MTD) of LPG and 3.10 MTD of Sulphur. 90 2006 5,822 2006 2005 2,021 In Ikhlas block, interpretation of data on the 2005 4,953 2005 36,980 (barrels thousand) Operations Review and Sadrial lead is in progress. Shooting of 2D seismic 60 (Rs in million) (Rs in million) lines covering approximately 300 line kilometers Future Prospects are planned over Sadrial north east and south 30A nnual Repor t and Financial Sta temen ts 2 010 A nnual Repor t and Financial Sta temen ts 2 010 Producing Fields west of Ikhlas. In Kirthar South block, the Company has been given an eighteen months extension 0 New Applications for Grant of Exploration Licenses Risk Management Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun for its work program but due to non-availability of Gas Production Bela well-1 was successfully completed during the The Board remains committed to the philosophy security clearance, we remain unable to carry out Gas Price Movement POL has been awarded two new Exploration year. The well produced at an average of 138 bpd (Rs per mmbtu) of effective business risk management as a any activities. In the Margala block, drilling is in Licenses in the D.G.Khan and Rajanpur areas by 2010 22,642 of condensate and 1.9 mmscfd of gas. Subsequent core managerial competency. The Board has progress at an exploratory well.In Gurgalot block, 300 the Government of Pakistan. to the year end, due to the floods, production from established a structured approach to risk 2009 13,834 Khwaja-1, an exploratory well, was drilled down to the well was suspended temporarily but has since 250 management through the formulation of a risk 2008 16,100 been resumed. In the Soan Concession, Pindori-8, 17,619 ft. The well was plugged and abandoned due to unsuccessful results. 200 Subsidiary management policy and system. The Company 2007 17,034 a development well, failed to provide commercial is in a continuous process to implement, monitor 2006 17,452 hydrocarbons and was declared unsuccessful. At Tal block, the merged 3D seismic data 150 CAPGAS (Private) Limited (CAPGAS) and improve its risk management policy. The Presently, further options for the Pindori field processing of Manzalai, Makori and Maramzai Company’s risk management system requires 2005 11,455 development, including interpretation of data area is in progress. Mapping has been completed 100 CAPGAS earned a profit before tax of Rs 35.07 approaching risk identification in a systematic (million cubic feet) and the location for a Pindori-9 well are being based on old and newly processed 2D seismic million during the year ( 2008-09: Rs. 72.1 million). way by developing a sound understanding 50 evaluated. lines on the upside potential of Tal block and It declared a total dividend of 390% for the year of the Company’s strategic and operational 24 25 seismic data acquisition of approx 318 line 0 2009-10 (2008-09: 820%). The Company received objectives, including critical success factors, In the non-operated joint ventures, Ratana well -2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun an average of 22 metric tons per day LPG from and the opportunities and threats related to kilometers has been proposed. Also Tal block, (deep re-entry) was successfully completed and is POLGAS Price Movement the Adhi plants and an average of 4 metric tons the achievement of these objectives as well as the Makori field development study has been presently producing 500 bpd of condensate and (Rs per m ton) per day of LPG from PARCO. analyzing the significant functions undertaken LPG Production 12.14 mmscfd of gas. At Adhi field, operated by completed. 80000 within the Company to identify significant risks Pakistan Petroleum Limited, data interpretation 2010 34,119 34,119 for newly acquired and processed seismic data is The Makori-3 well, at Tal block was spudded on January 4, 2010 and drilled down to 11,171 feet. 70000 Crude Oil Transportation which flow from these activities. Risks are required to be formally identified, prioritized and 2009 34,098 60000 underway. A reservoir simulation study is also in The well was a success and is presently producing incorporated into a risk management response 2008 42,703 progress. At Chak Naurang field, drilling of Chak 50000 Khaur Crude Oil Decanting Facility (KCDF) 1,600 bpd of crude and 22 mmscfd of gas. On the to effectively address risks. The risk management Naurang-South well-1 is in progress. The operator 40000 continued to operate satisfactorily. Up to June 2007 43,328 other hand, another exploratory well at Tal block, response includes assigning formal responsibility has proposed a reservoir simulation and artificial 30000 30, 2010, a total of 3.6 million barrels of crude 2006 42,442 Makori West -1 proved to be unsuccessful. and accountability for the management of risks lift study of the area. In Tal block, Manzalai-8 was oil arriving from the southern part of the country 20000 to individuals within the Company, who have the 2005 32,869 drilled to 13,796 feet and produced 156 bpd of The Tolanj X-1, also in the Tal block, was spudded were pumped to Attock Refinery Limited through 10000 required level of technical expertise as well as condensate and 13.99 mmscfd of gas. The well is on May 21, 2010 and drilling is in progress. this facility and pipeline during the year. (metric tons) 0 authority to effectively manage the risks. presently shut-in awaiting line pipe for the flow line. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun