PPL mulls new joint venture for hydrocarbon KARACHI: The Pakistan Petroleum Limited (PPL), the country’s second-biggest oil exploration company by revenue, is mulling new joint ventures with international companies to explore the offshore hydrocarbon potential in the country. After facing several failures, PPL has planned to drill another off-shore exploratory well this year subject to weather conditions, disclosed a company’s annual general meeting on Friday. Moin Reza Khan, chief operating officer of PPL, said the company has three off-shore blocks and they plan to drill one block. Overall, PPL will drill 19 exploratory wells this year; of which, nine will be in its operated blocks while 11 in the partner operated blocks. Khan said Pakistan has formally become a member of tight gas producing club, as around 10 million metric cubic feet per day (mmcfd) of tight gas was being produced from Rehmut discovery in Keerthar block, which was a PPL field. Pakistan has a huge potential of both tight and shale gas. However, at present, the company’s prime focus is on the exploration and development of conventional reserves. The meeting was apprised about the oil discovery at Ghauri X-1 well in partner operated Ghauri block and the inauguration of first gas delivery from Latif-Sawan development project. The meeting highlighted milestones achieved during the financial year, notably a string of discoveries in company-operated blocks, including gas condensate from Shahdad X-1 in Gambat South block and tight gas from Nausharo Firoz X-1. Khan said the growing demand together with hike in oil and gas prices during the recent past has increased attention towards the exploration and production (E&P) sector worldwide. The trend also affected the E&P activities in Pakistan where the energy demand and supply gap is continuously widening. “The company’s exploration strategy is aimed at replenishing and enhancing its existing reserves. To this end, regional studies and evaluation continue to identify prospective areas for direct participation in bidding and pursuing farm-in opportunities with other companies,” he said. PPL Group’s current exploration portfolio comprises 27 operated and 20 partner-operated blocks, including three offshore blocks, one operated block in Iraq and two partner-operated blocks in Yemen. The blocks are located in all the different sedimentary basins of Pakistan. Khan said PPL is looking for partnership with interested companies for joint venture for shale gas exploitation, swap of working interest with PPL from existing exploration portfolio in return for similar mature opportunities locally and internationally, a consortium to participate in the domestic and international bid rounds or farm-in by PPL in the selected prospective regions and joint venture with investors for equity participation in E&P services sector.
Posted on: Sat, 25 Oct 2014 08:42:20 +0000
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