Pakistan Oilfields Limited

Under an Agreement, signed in Nov. 1978 with the Government of Pakistan, POL took over from the AOC the entire oil and gas exploration, production, gas processing and transmission activities. Currently the Company is quoted on all the three Stock Exchanges of Pakistan. The Company's present operations comprise activities relating to exploration and production of crude oil and natural gas. It is actively engaged in oil and gas exploration in the following Concessions as an operator.

* Ahmadal

* Soan (Pindori)

* Minwal

* Central Potwar

Besides, POL is also in exploration and production Joint Ventures with Oil and Gas Development Co. Ltd. (OGDCL), Orient Petroleum Inc., and Tullow Pakistan (Developments) Limited in the following Concessions.

* North Potwar (Dhumal)

* Soan (Bhangali)

* Chakwal (Chak Naurang)

* East Badin Extension Block-B

[TABULAR DATA OMITTED]

The average production of the Company during the year 1996-97 including share from joint venture operations was 4,474 barrels of Oil per day (BOPD), 19.59 million cubic feet of gas per day (MMSCFD), 84 tonnes per day of Liquefied Petroleum Gas and 68.36 BOPD of Solvent Oil. The major share of production is from Turkwal field where a well was re-entered successfully through horizontal drilling and is currently producing at an average of 2000 BOPD and 2.5 MMSCFD of gas.

POL has acquired 3 D seismic survey on 80 sq. kms in Khaur, 69.5 sq. kms in Balkassar, 70 sq. kms in Pariwali and 30 sq. kms in Pindori Concession. The interpretation of the data acquired was completed and location for Pariwali 2 and Pindori 4 were finalized. In Central Potwar and Meyal region 2D seismic survey of 159 line kms and 126 line kms respectively was conducted and processing of the acquired data in progress.

Pariwali discovery was declared commercial on June 10, 1997 and a 121.95 sq. km. Development and Production Lease was granted for a period of twenty years w.e.f. from July 1, 1997. Pariwali Well#2 in Ahmadal Concession was spud on December 19, 1997 and drilling is in progress at a satisfactory pace. LPG plant at Pindori was installed and production started in April 1997. POL plans to drill Pindori#4 in 1998-99. Minwal X-1 was drilled and oil was discovered at a total depth of 7150 feet. This well has been put on extended test production since January 3, 1997.

The Company is continuing to look for new oil and gas prospects so as to increase its reserve base and enhance its present production. POL applied for a 2,619 sq. kms area in Southern Sindh Block. Commitment has been given to reprocess 200 line km of existing seismic data acquired in 1996 in Cholistan Area, which was surrendered on its expiry date of November 20, 1996 and was again applied. Both the Concession were awarded to POL on Oct. 18, 1997.

In order to increase asset base value, and grow reserve base, POL is also planning to go international in its oil and gas exploration efforts. The Company is considering to acquire oil reserves through participation in low risk viable prospects in joint ventures with sound oil companies operating in basin of large oil and gas potential that are located in close proximity to Pakistan.

The Company has a vast network of pipelines linking its fields with Attock Refinery Limited (ARL) for processing of crude oil. Pipeline network is operating satisfactorily. Besides transporting its own crude oil, POL is transporting oil produced at Fimkassar, Toot, Dhakni and Dhumal operated by OGDCL and Orient Petroleum Inc., respectively. Pipeline from Minwal to Joyamir for disposal of oil production has also been completed. POL has been awarded licence to market LPG under brand name POLGAS and LPG produced from Pindori Concession has been allocated to the Company.

The subsidiaries of POL namely Attock Chemicals Ltd., CAPGAS and Attock Industrial Products Ltd., performed satisfactorily during 199697. Sales during the year ending June 30, 1997 stood at Rs. 1,889 million and pretax profit at Rs.694.39 million. The Company contributed Rs.244 million to the national exchequer and effected foreign exchange saving for the country to the tune of US$52 million. The Authorised Capital of Company is Rs.500 million against issued and paid-up capital of Rs.380.25 million.