Pakistan Oilfields Limited

Economic Review, Feb, 2003

Pakistan Oilfields Limited (POL) commenced business in June 1952. It is listed on all three stocks exchanges of the country and its shares are eligible for transaction through Central Depository System (CDS).

History and Objectives: POL is the standard bearer of The Attack Oil Company (AOC) the parent company of POL and a pioneer in exploration and production of oil and gas in British India. AOC was founded in 1913 and made its first oil discovery at Khaur, district Attock in 1915. POL has a commendable tradition of work and history of successful efforts, for the search of oil and gas to its credit.

The Company was established to undertake petroleum exploration and prospecting licences and petroleum mining leases granted by the GoP. In pursuance of agreement with the Government in 1978 POL took over the exploration and production business of AOC in Pakistan. Since then POL is investing independently and in Joint Ventures with various E&P companies for the search of oil and gas in the country.

Current Payout: Pakistan Oilfields Limited has shown a record net Profit of Rs.24 billion and disbursed a 230% cash dividend (80% interim and 150% final dividend) and in addition of 80% bonus dividend for the year 2000-01 which was also Golden Jubilee year of the Company.

The Company paid 160% cash dividend (80% interim and 80% final dividend) for the year 2001-02 even on increased paid up capital.

Exploration and Production Achievements: POL's achievements, discoveries and International Exploration efforts demonstrate its resolve to aggressively explore Oil and Gas reserves for its growth and to meet national energy requirement.

POL discovered oil at Karsal (1960) and Meyal (1968) in the Potohar Plateau and acquired additional concessions in the Potohar region, in middle and lower Indus Basin Sindh and Balochistan, recent discoveries by POL include Pariwali (1994), Pindori (1995), Minwal (1996) and Turkwal (1997). The Company has an unprecedented track record of hard work in the field of oil and gas exploration; together with its parent company AOC. It drilled 530 wells and has produced 136 million barrels of oil, 0.5 trillion standard cubic feet of gas and 0.7 million metric tonnes of LPG.

Exploration/Development Leases: POL is presently operating nine Development and Production leases i.e. Pariwali, Meyal, Joyamari, Minwal, Dhulian, Khaur, Pindori, Turkwal and Balkassar.

The Company has Joint Venture Agreements with the following E&P Companies:

* Oil & Gas Development Co. Ltd. (OGDCL) in Pindori, Chak Naurang, Gurgalot Block, Khushalgarh and Kotra.

* Orient Petroleum Inc. in Dhurnal, Ratana and Bhangali.

* Tulow Pakistan (Development) Limited in East Badin Extension Block-B.

* Lasmo Oil Pak Ltd. in Manchar Block.

* MOL Pakistan in Tal Block.

* International Joint Venture with MOL Yemen Block 48 and 49. POL is the first Pakistani company to enter into the International Oil and Gas Exploration. POL and AOC have joined MOL Yemen Oil & Gas Limited for exploration in Block-48 and Block-49 in Yemen.

Production: POL is currently producing close to 10,000 BOPD, 47 MMSCFD of Gas, 160 M. Tons per day (T/D) of LPG 705 barrels per day (B/D) Solvent Oil and 10 T/D of Sulphur. POL net share of production averages 5,500 BOPD, 33 MMSCFD of Gas, 113 T/D of LPG, 299 B/D Solvent Oil and 10 T/D of Sulphur. In equivalent of oil barrels POL is the third largest producer in Pakistan.

Other Activities: In addition to our core business of Exploration & Production of Oil and Gas, POL is carrying out following activities related to its major business:

Liquified Petroleum Gas (LPG) and Solvent Oil Plants: POL owns and operates plants to produce LPG and Solvent Oil at its Meyal and Pindori fields. POL markets LPG under its own brand name of POL Gas.

Meyal plant has the capacity to process 75 MMSCFD of gas. It caters for gas produced of Meyal, Dhulian, Pariwali (POL fields) and Ratana (Orient Petroleum Inc. field). It produces 75 T/D of LPG and 60 B/D of Solvent Oil.

Pindori Plant was installed in the year 1997 at a cost of US$6.13 million with a capacity to process 16 MMSCFD of gas, producing 60 MTP/D of LPG and 830 B/D of Solvent oil. Phase-I expansion of the plant has been done in year 2002 to increase its gas processing capacity to 40 MMSCFD.

Pipelines: POL also owns and operates an extensive network of pipelines for transportation of crude oil, to Attock Refinery Limited (ARL) at Morgah Rawalpindi from POL's own fields at Meyal, Balkassar, Dhulian, Pariwali and OGDCL fields of Tut, Dakhni and Fimkasar.

Khaur Crude Oil Decanting Facility (KCDF): POL operates a state-of the-art decanting, metering and pumping facility for crude oil at Khaur. The crude oil is received from OGDCL and BPP oilfields situation in southern areas of the country and are pumped to ARL. This facility has 30,000 BOPD decanting and storage and 20,000 BOPD pumping capacity.

New Acquisition: POL has acquired 11% working interest of GoP in Adhi field through a hidding process. Adhi field is located in eastern Potohar Plateau and produces at an average rate of 2400 BOPD with 18 MMSCFD of gas and 60 MT/day of LPG.