YEAR BOOK 2017-2018
GOVERNMENT OF PAKISTAN MINISTRY OF ENERGY (PETROLEUM DIVISION) A-BLOCK PAK-SECRETARIAT ISLAMABAD TABLE OF CONTENTS
S # Description Page No.
1. GENERAL…………………………………………………………… 1-7 MISSION STATEMENT……………………………………………. 2 STRATEGY TO ACHIEVE MISSION……………………………….. 2 FUNCTIONS OF THE DIVISION………………………………… 2 ORGANIZATION OF THE DIVISION……………………………. 3 ADMINISTRATION WING…………………………………………. 5 DEVELOPMENT WING (INVESTMENT & JOINT VENTURE)… 5 MINERAL WING…………………………………………………….. 5 POLICY WING………………………………………………………. 6 ATTACHED DEPARTMENT, AUTONOMOUS BODIES, 6 CORPORATIONS AND COMPANIES OF THE DIVISION
WEBSITE OF THE DIVISION…………………………………….. 7 2. ACTIVITIES, ACHIEVEMENTS AND PROGRESS 8-17 MINERAL WING…………………………………………………… 9 POLICY WING…………………………………………………….. 11 (i) DIRECTORATE GENERAL OF OIL………………... 11 (ii) DIRECTORATE GENERAL OF GAS ………………. 13 (iii) DIRECTORATE GENERAL OF LIQUEFIED 16 GASES………………... (iv) DIRECTORATE GENERAL OF PETROLEUM 16 CONCESSIONS…………………. 3. GEOLOGICAL SURVEY OF PAKISTAN (GSP)……………….. 18-33 INSTITUTIONAL STRUCTURE…..……………………………...... 19 BUDGET AND FINANCE …………………………………………. 20 ACTIVITIES, ACCOMPLISHMENTS AND PROGRESS ………. 21 RESEARCH STUDIES…………… 21
i 4. HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN 34-39 (HDIP)…………...... INTRODUCTION…………………………………………………… 35 UPSTREAM ACTIVITIES………………………………………….. 36 DOWNSTREAM ACTIVITIES…………………………………….. 38 COMPANIES……………………………………………………… 5. OIL AND GAS DEVELOPMENT COMPANY LIMITED ………… 40 6. PAKISTAN PETROLEUM LIMITED……………………… 44 7. GOVERNMENT HOLDINGS (PVT.) LIMITED……………….. 66 8. SUI NORTHERN GAS PIPELINES LIMITED ………….. 77 9. SUI SOUTHERN GAS COMPANY LIMITED…………… 79 10 INTER STATE GAS SYSTEMS (PVT) LIMITED………………. 81 11. PAKISTAN STATE OIL COMPANY LIMITED………… 85 12. PAK ARAB REFINERY LIMITED……………………….. 91 13. SAINDAK METALS LIMITED…………………………… 94 14. PAKISTAN MINERAL DEVELOPMENT 103 CORPORATION……………………………………………. 15. LAKHRA COAL DEVELOPMENT COMPANY…………. 112
16. PAKISTAN LNG LIMITED………….………….………….… 117
17. PAKISTAN LNG TERMINALS LIMITED………….………… 119
ii PREFACE
This report has been prepared in accordance with Rule 25(2) of the Rules of Business, 1973, which stipulates that at the beginning of each financial year, each Division shall, for the information of the Cabinet and general public, set up as a permanent record, a Book which shall contain:
a. The details of its activities, achievements and progress during the preceding financial year giving only the unclassified information which can be used for reference purposes;
b. The programme of activities and targets set out for itself during the preceding financial year and the extent to which they have been realized; and
c. The relevant statistics properly tabulated.
The report gives an overview of the activities, achievements and progress of the Petroleum Division, its attached departments and organizations/companies that were working under its administrative control, during the Financial Year 2017-18. However, the reflection of activities and achievements provides a bird’s eye view on the broader parameters of policies and functions. For details on particular topics, the website of the Division may kindly be referred to, which is updated on regular basis to reflect the current issues and policies pertaining to the oil, gas and mineral sectors of Pakistan.
I hope that this Year Book will serve as a useful reference document.
Islamabad: 2019 Mian Asad Hayaud Din Secretary
iii CHAPTER 1: GENERAL
Ministry of Energy (Petroleum Division) Year Book 2017-18 1 1.1 INTRODUCTION
Ministry of Energy has been established after the reorganization of the Federal Secretariat by Cabinet Division on 4th August, 2017. Ministry of Energy comprises of two Divisions namely, Petroleum Division and Power Division. Prior to that the Petroleum Division was known as Ministry of Petroleum and Natural Resources which was created in April 1977 after bifurcation of Ministry of Fuel, Power and Natural Resources. Year Book pertains to the activities and achievements of the Petroleum Division pertaining to the period 2017-18.
1.2 MISSION STATEMENT
To ensure availability and security of sustainable supply of oil and gas for economic development and strategic requirements of the country and to coordinate development of natural resources of energy and minerals, in order to cater for needs of the people of Pakistan.
1.3 STRATEGY TO ACHIEVE MISSION
To adopt an integrated approach for promoting exploration and fast track development of oil, gas and mineral resources. To deregulate, liberalize and privatize oil, gas and mineral sectors through structural reforms. To attract private investment and to establish credible institutions for facilitating the development of petroleum and mineral sectors. To develop technical and professional human resources. To optimize existing energy delivery infrastructure (oil/gas pipelines). To substitute imported fuel oil with indigenous gas by optimally balancing the gas availability and supplies from local and imported sources.
1.4 FUNCTIONS OF THE DIVISION
The Division is responsible for dealing with all matters relating to oil, gas and minerals. Its detailed functions as per the Rules of Business are as under:
1. All matters relating to oil, gas and minerals at the national and international levels including:-
i) Policy, legislation, planning regarding exploration, development and production; ii) import, export, refining, distribution, marketing, transportation and pricing of all kinds of petroleum and petroleum products (Prices of all kinds of petroleum and petroleum products are determined by Oil and Gas Regulatory Authority w.e.f. 01-04-2006) iii) matters bearing on international aspects;
Ministry of Energy (Petroleum Division) Year Book 2017-18 2 iv) Federal agencies and institutions for promotion of special studies and development programmes.
2. Geological Surveys. i) Administration of Regulation of Mines and Oil-fields and Mineral Development (Government Control) Act, 1948, and rules made there- under, in so far as the same relate to exploration and production of petroleum, transmission, distribution of natural gas and liquefied petroleum gas, refining and marketing of oil;
ii) Petroleum concessions agreements for land, off-shore and deep seas areas;
iii) Import of machinery, equipment, etc., for exploration and development of oil and natural gas.
3. i) Administration of Marketing of Petroleum Products (Federal Control) Act 1974 and the rules made there-under;
ii) Matters relating to Federal investments and undertakings wholly or partly owned by the Government in the field of oil, gas and minerals, excepting those assigned to the Industries and Production Division. 4. Administration of:- i) The Petroleum Products (Development Surcharges) Ordinance, 1961, and the rules made there-under: ii) The Natural Gas (Development Surcharges) Ordinance, 1967, and the rules made there-under; and iii) The Esso Undertakings (Vesting) Ordinance, 1976; and iv) Hydrocarbon Development Institute of Pakistan Act, 2006 (I of 2006) and the rules made there-under.
5. i) Coordination of energy policy, including measures for conservation of energy and energy statistics; ii) Secretariat of National Energy Policy Committee.
6. Central Inspectorate of Mines, Islamabad.
1.5 ORGANIZATION OF THE DIVISION
The Ministry of Energy (Petroleum Division) has been organized into four wings i.e. Administration, Development, Mineral and Policy. The Division has one Attached Department, one Subordinate Office, one Autonomous Body and 11 companies that are working under its administrative control. The Secretary is assisted by two Additional Secretaries, two Joint Secretaries and five Directors General.
Ministry of Energy (Petroleum Division) Year Book 2017-18 3 Ministry of Energy (Petroleum Division) Year Book 2017-18 4 1.5.1 ADMINISTRATION WING Administration Wing consists of a Joint Secretary, two Deputy Secretaries and six Section Officers along with the supporting staff and one IT Network Administrator. The Wing is responsible for the following functions:
Personnel and general administration of the Ministry (Secretariat).
All matters relating to administration of the Policy Wing, oil and gas companies, Geological Survey of Pakistan (GSP), Pakistan Mineral Development Corporation (PMDC) and Hydrocarbon Development Institute of Pakistan (HDIP).
Corporate affairs of oil and gas companies.
All matters relating to technical assistance, tours and training.
Coordination work of the Division and its attached organizations.
All matters relating to web-site and networking of the Ministry.
Coordination work related to Energy (Petroleum Division) Committee on Defense Planning.
All matters relating to the Parliament Business.
1.5.2 DEVELOPMENT WING
This Wing comprises one Joint Secretary, two Deputy Secretaries and four Section Officers along with the supporting staff. The Wing is mainly responsible for coordination on policy matters, processing and seeking approval of oil and gas infrastructure and mineral sector projects, and monitoring of development schemes. It also processes foreign aid/loan and coordination with the World Bank, ADB, CIDA, IDB JICA; handles Joint Ministerial Commissions, ECO & bilateral relations; and prepares development budget (PSDP), long term plans, economic survey & Budget speeches. Matters relating to ECNEC, ECC, CCOI, CCOP, Cabinet and implementation of decisions, foreign investment, privatization and import of natural gas projects are also undertaken by this Wing.
1.5.3. MINERAL WING
Mineral Wing is a technical arm of the Division and looks after the following functions: Frame, update and monitor implementation of National Mineral Policy. Review and dissemination of geological data. Provide support to federating units in improving regulatory regime, negotiation of international mineral agreements and capacity building etc.
Ministry of Energy (Petroleum Division) Year Book 2017-18 5 Facilitate local and foreign investment in the mineral sector. Provide inputs for formulating sectorial development plans in consultation with the federating units. Process mineral development schemes and operational issues of federal public sector bodies /attached departments (PMDC/SML/LCDC/GSP/ PASDEC). Monitor progress of public sector mineral development projects. Promotion of mineral sector through publications, seminars, workshops, road shows and participation in the world fora etc.
1.5.4 POLICY WING
The Policy Wing comprises (i) Directorate General of Petroleum Concessions, (ii) Directorate General of Oil, (iii) Directorate General of Gas, (iv) Directorate General of Liquefied Gases and (v) Directorate General of Admn/Special Projects. Each Directorate is headed by a Director General. The Policy Wing is responsible for developing policies for oil and gas sectors, forecasting future requirement and assessing the impact of existing policies, rules and regulations.
1.5.5 ATTACHED DEPARTMENT, AUTONOMOUS ORGANIZATIONS, CORPORATIONS AND COMPANIES OF THE PETROLEUM DIVISION
The Division has one attached department, one sub-ordinate office, one autonomous body and eleven organizations/companies under its administrative control:
Geological Survey of Pakistan (GSP) [Attached Department]. Central Inspectorate of Mines (CIM) [Sub-ordinate Office] Hydrocarbon Development Institute of Pakistan (HDIP) [Autonomous Body]. Oil and Gas Development Company Limited (OGDCL). Sui Northern Gas Pipelines Limited (SNGPL). Sui Southern Gas Company Limited (SSGCL). Pakistan State Oil Company Limited (PSOCL). Pakistan Petroleum Limited (PPL). Pak Arab Refinery Company Limited (PARCO). Saindak Metals Limited (SML). Lakhra Coal Development Company (LCDC). Government Holdings (Pvt.) Limited (GHPL). Pakistan Mineral Development Corporation (Pvt.) Limited (PMDC). Inter State Gas Systems (Pvt.) Limited (ISGSL). Pakistan LNG Limited (PLL)
Ministry of Energy (Petroleum Division) Year Book 2017-18 6 Pakistan LNG Terminal Limited (PLTL)
1.6 WEBSITE OF THE DIVISION
The Division has been regularly updating its website www.mpnr.gov.pk on the basis of feedback received from stakeholders. The website provides information about the activities of the Division, Policies, Projects and Press releases.
Ministry of Energy (Petroleum Division) Year Book 2017-18 7 CHAPTER 2 : ACTIVITIES, ACHIEVEMENTS AND PROGRESS DURING 2016-17
Ministry of Energy (Petroleum Division) Year Book 2017-18 8 2.1 MINERAL WING Pakistan is blessed with a variety of mineral resources that include metallic minerals, coal, building stones, industrial minerals and precious gemstones. More than 50 minerals are known to occur and thousands of mines are operative producing chromite, ores of copper (gold, silver), iron & lead-zinc, coal, rock salt, limestone, gypsum, dolomite, barite, bentonite, china clay, fireclay, rock phosphate, silica sand, marble, granite, sand stone, emerald, ruby and tourmaline etc. Both public and private sector organizations including foreign entrepreneurs are engaged in exploration, development and mining of these natural resources. i. Constitutional Position As per Constitutional provisions, the Federal Government is mandated with geological surveys, regulation of nuclear minerals and those occurring in federally controlled areas [Islamabad Capital Territory (ICT) & offshore beyond the territorial waters], co-ordination and formulation of policy/plan for mineral sector at national and international levels. Minerals other than nuclear substances are Provincial subject, which accordingly regulate mineral development activities within their territorial jurisdiction. ii. National Mineral Policy Focus The Government has been encouraging investment in mineral exploration and development. With a view to enhance international competitiveness of this sector through attractive fiscal and regulatory regimes, Government of Pakistan announced first national mineral policy (NMP) in 1995 with the consensus of all federating units. This initiative brought about significant direct foreign investment to the hitherto neglected mineral sector, which resulted into discovery of world-class mineral deposits of coal, copper-gold, lead-zinc, gemstones and manifold increase in the revenue receipts to the public exchequer. The Policy was updated in 2013 in consultation with all stakeholders/Provinces and approved by Council of Common Interests for implementation. iii. Functions Mineral Wing is a technical arm of the Petroleum Division and is entrusted with the following functions:-
Frame, update and monitor implementation of National Mineral Policy. Provide support to federating units in improving regulatory regime, negotiation of international mineral agreements and capacity building etc. Facilitate local and foreign investment in the mineral sector. Provide inputs for formulating plans for mineral sector in consultation with the federating units. Process mineral development schemes and operational issues of federal public sector bodies/attached departments (PMDC, SML, LCDC, GSP, BME etc.). Monitor progress of public sector mineral development projects. Dealing with Joint Commissions and MoU/agreement with different countries concerning mineral resources; Collection and dissemination of mineral resources data; and Promotion of mineral sector through participation in seminars, workshops and the World fora, etc.
Ministry of Energy (Petroleum Division) Year Book 2017-18 9 iv. Achievements Achievements of Mineral Wing during the year 2017-18 are summarized as under:- - Monitoring of implementation of National Mineral Policy, 2013 envisaging reforms like easy access to the data required by investors, corporate social responsibility, research & development activities, local value- addition/beneficiation of minerals, compliance with internationally recognized reporting standards for mineral resource evaluation/estimation, improved safety & health considerations, emphasis on infrastructure development & environmental impact mitigation and joint mechanism for implementation by federal & provincial governments. - Assistance to federal public sector organizations; Geological Survey of Pakistan, Pakistan Mineral Development Corporation, Pakistan Stone Development Company, Gem & Jewelry Development Company, Lakhra Coal Development Company, Saindak Metals Limited and Bolan Mining Enterprises in their mineral project operations. - Preparation/processing of mineral sector project port-folios and suggestions for bilateral cooperation with other countries and international aid agencies. - Facilitated the national and international mineral sector companies in obtaining security clearance and work visas for their expatriates enabling them to work in Pakistan at mineral sites for copper, gold, lead, zinc, iron, chromite, marble, granite etc. - Designated as focal point for monitoring under PMES of PSDP Projects being executed/ by the Ministry and its attached organizations. - Provided support services for defense of Federal & Provincial Governments in the International Arbitration Reference instituted by Tethyan Copper Company regarding Reko-Diq Copper-Gold Project (District Chagai, Balochistan) before ICSID and ICC. - Conducted Parliamentary Business for inputs relating to mineral sector in both the houses i.e. National Assembly, Senate of Pakistan and Standing Committees thereof. - Collection of data from various sources – Provincial Departments, Pakistan Bureau of Statistics, Trade Development Authority and GSP and its transmission to local and international organizations. - Representation of mineral sector in seminars/workshops of ECO. 2.1.1 CENTRAL INSPECTORATE OF MINES Central Inspectorate of Mines is entrusted with enforcement of the Mines Act, 1923 and rules/regulations framed thereunder [Consolidated Mines Rules, 1952 and Oil & Gas (Safety in Drilling & Production) Regulations, 1974 etc.] concerning occupational safety and health aspects in the mines falling in federal domain i.e. oil-fields & gas-fields in the country. These enactments regulate the competent supervision of mine operations, appropriate working procedures, provision of protective equipment and safety gadgets, first- aid and health-care, working hours and rest intervals etc.
Ministry of Energy (Petroleum Division) Year Book 2017-18 10 For accomplishment of its organizational objectives, the Inspectorate carries out inspection visit of oil- & gas-fields; drilling well sites, seismic survey sites and oil/gas production facilities to ascertain the status of implementation of legal safety requirements; follow-up of inspection observations for remedy of shortcomings; and inquiry/follow-up of accidents for adoption of preventive measures to avert recurrence and help for the payment of compensation to the affectees. Besides the regulatory functions, the Inspectorate conducts information dissemination and training/awareness raising programs for workers, supervisors and managers regarding occupational safety & health concerns and related laws to promote safety culture at workplace.
2.2 POLICY WING 2.2.1 Directorate General of Oil
Consumption of petroleum products in the country remained around 25.8 million tons during 2017-18. Indigenous crude oil meets only 15% of total requirements, while 85% was met through imports in the shape of crude oil and refined petroleum products. The crude oil is refined by six major and two small refineries.
Refineries are importing crude oil, after uplifting local crude oil, from any source allocated. Oil Refineries have their own commercial Standards Terms Contract for importing crude oil from supplier i.e. Saudi ARAMCO and Abu Dhabi National Oil Company (ADNOC).
At present, oil refineries have long term commercial Agreements for import of crude oil from Saudi and UAE, PARCO: 60,000 bpd (Saudi Arabia) and 39,000 bpd from UAE, NRL 50,000 bpd from Saudi Arabia, PRL 29,000 bpd from UAE, whereas Byco imports crude oil as per their requirements on spot price basis form Gulf Region
During 2016-17and 2017-18 indigenous oil refineries produced 12 million tons and 13.5 million tons of POL products, respectively. Oil refineries processed during 2016- 17 and 2017-18, 8.6 million tons & 10 million tons of imported crude oil and 3.9 million tons and 3.8 million tons of indigenous crude / condensate, respectively.
Oil Marketing & Refining Policy
In pursuance of the de-regulation liberalization and privatization reforms policy of Government of Pakistan, Petroleum Division had adopted the phase-wise deregulation of Petroleum sector. In the first phase, import of Furnace Oil (FO) was deregulated w.e.f 1st July, 2000 and Oil Marketing Companies, Power Plants, Industrial Consumers and Private Traders were allowed to import it. In the second phase, import of High Speed Diesel (HSD) was outsourced w.e.f 1st April, 2001 and Oil Marketing Companies were allowed to import deficit products. From 1st September, 2002 the Oil Marketing Companies and Bulk Consumers were allowed to import HSD from sources of their own choice, as per their requirements, on cost competition basis.
As per policy, locally produced HSD has the ‘first right of consumption’ i.e. production of local refineries has to be uplifted first. Only the deficit balance demand is met through imports. Pakistan State Oil (PSO) imports about 2.3 million tons of HSD from Kuwait under a long term contract. The remaining requirement of HSD
Ministry of Energy (Petroleum Division) Year Book 2017-18 11 and FO is imported by PSO and other Oil Marketing Companies (OMC). Import of MS (Petrol) and Jet Fuel is also arranged by OMCs to meet the demand.
Import of deficit petroleum products has been deregulated under the Government policy. Oil Marketing Companies (OMCs) are importing Furnace Oil, Mogas (Petrol) and Diesel oil from the international market on the cost competition basis through open tenders. Traders and bulk consumers have also been allowed to import furnace oil. Major supply of diesel oil is arranged from Kuwait on long term contract basis while balance quantity is procured through open tenders from Gulf region by OMCs.
Pakistan offers good opportunity for establishment of new oil marketing companies and new oil refinery project in view of its fast growing demand of petroleum products market. In order to create healthy competition, achieve efficiencies and attract investment in the downstream oil sector, following steps have been taken by the Government:-
a) Criteria has been developed for establishment of new oil marketing companies in the country which requires a minimum investment of Rs. 500 million over a period of three years after obtaining marketing license for infrastructure/storage and retail outlets development with upfront equity of Rs. 100 million at the time of grant of license.
b) Salient Features of the Policy for Setting Up of New Oil Refinery Project in the country are as under:
i. No prior permission of GOP is required for setting up of new refinery project. However, License from Oil & Gas Regulatory Authority (OGRA) is required under OGRA Ordinance 2002. ii. Import parity price formula linked to Singapore Mean FOB spot price for the new oil refineries. iii. Import of crude oil from any source subject to Price Economics after lifting local crude allocated if any. iv. Concessionary rate of duties / taxes for the equipment not manufactured locally as per the prevailing policy/procedures. v. Refineries are free to sell their product to any marketing companies or they can set up their own marketing companies. vi. No hydro-skimming refinery will be established in the country. Only semi conversion or fully conversion refineries may be established.
ACHIEVEMENT DURING THE YEAR 2017-18.
1) Approval of incentive package for Refinery Project:
In order to attract local and foreign investment, approval of attractive incentive package for all new state of the art (not second hand/relocated) Deep Conversion Oil Refinery projects including expansion of existing refineries of minimum 100,000 bpd
Ministry of Energy (Petroleum Division) Year Book 2017-18 12 refining capacity to be set up anywhere in the country. The said package provides 20 years income tax holiday and other exemptions from duties and taxes in connection with engineering, procurement, construction, commissioning, operation, maintenance and repair of the Refinery project.
2) Collection of Revenue:
During the financial year 2017-18, GOP earned revenue on petroleum products as follows:- Earning through (Rs. In Millions)
Petroleum Levy 178.87
Discount 9.11 Windfall Levy 3.90
3) Enhancement Of Storages Capacity
During the period 2017-18, the following storage capacities have been added to meet the enhanced demand of Petroleum Products:- Figure in M. Tons S. Storage Capacity Total Quantity Added Product No. 2016-17 2017-18 2018-19 1. MS 406,568 490,408 83,840
2. HSD 1,142,584 1,222,283 79,699
4) Introduction Of Environment Friendly Fuel
In order to promote fuel efficiency, Manganese phase out plan has been enforced since May, 2018; whereas iron based additives have been banned.
2.2.2 Directorate General of Gas
Natural Gas is a clean, efficient, economical and environment friendly fuel. Its indigenous supplies contribute about 38% of the total primary energy mix in the country. Government of Pakistan is pursuing its policies of enhancing gas production to meet the increasing demand of energy in the country through aggressive exploration activities. Natural Gas consumption including Re-gasified Liquefied Natural Gas (RLNG) during 2017-18 remained 3,875 MMCFD.
1. SECTORAL GAS CONSUMPTION The sector-wise gas consumption in Million Cubic Feet per Day (MMCFD) along-with percentage during 2017-18 is appended below; Ministry of Energy (Petroleum Division) Year Book 2017-18 13 Unit: MMCFD Sectors Natural Gas RLNG Total Percentage (Indigenous) Power 938 510 1,448 37% Domestic 779 779 20% Commercial 86 1 87 2% Transport (CNG) 137 55 192 5% Fertilizer 608 4 612 16% General Industry 551 206 757 20% Total 3,099 776 3,875 100%
2. NEW CONNECTIONS ACHIEVEMENTS With the intention to benefit maximum households, gas utility companies have set their objective to enhance consumer base. The company-wise and category-wise new gas connections provided during Fiscal Year (FY) 2016-17, 2017-18 and its accumulative status as on 30.06.2018 is given below;
i. SNGPL FY 2017-18 Present Status as Sectors FY 2016-17 on 30.06.2018 Domestic 420,421 602,057 6,194,783 Commercial 282 2,746 56,299 Industry 1 116 5,871 Total 420,704 604,919 6,256,953
ii. SSGCL Sectors Present Status as FY 2016-17 FY 2017-18 on 30.06.2018 Domestic 86,012 89,070 2,886,222 Commercial 318 311 22,695 Industrial 29 17 4,207 Total 86,359 89,398 2,913,124
3. COMPANY-WISE TRANSMISSION AND DISTRIBUTION PIPELINES NETWORK (TARGETS AND ACHIEVEMENTS) The gas utility companies are focused on extending their infrastructure by laying additional transmission & distribution pipeline. The company-wise details of gas network extended during Fiscal Year 2016-17, 2017-18 and its accumulative status as on 30.06.2018 is given below;
a. SNGPL Ministry of Energy (Petroleum Division) Year Book 2017-18 14 (Figures in Km)
Gas Pipeline Network FY 2017-18 Present Status as FY 2016-17 on 30.06.2018 Transmission Network 696 330 8,876 Distribution Mains 7,102 12,933 100,706 Services 1,515 2,044 25,371 Total 9,313 15,307 134,953 ii. SSGCL (Figures in Km) Gas Pipeline Network Present Status as FY 2017-18 FY 2016-17 on 30.06.2018 Transmission Network 337 57 4,030 Distribution Mains 519 457 35,889 Services 239 231 10,320 Total 1,095 745 50,239
4. NATURAL GAS ALLOCATION AND MANAGEMENT POLICY, 2006 During 2005-06 the Government announced natural gas allocation and management policy to set out priorities for use of natural gas in an optimal manner and also to manage demand during short supplies in an economically efficient manner. The priority order defined in the Natural Gas Allocation and Management Policy, 2006 has been reviewed in 2013 and accordingly different sectors have been prioritized as per the following order:
CATEGORY OF CONSUMERS PRIORITY ORDER
Domestic and Commercial Sectors First
Power Sector Second
General Industry, Fertilizer & Captive Power Third
Cement Sector including its Captive Power Fourth
CNG Sector Fifth
Ministry of Energy (Petroleum Division) Year Book 2017-18 15 2.2.3 DIRECTORATE GENERAL OF LIQUEFIED GAS (DG LG) i) Liquefied Natural Gas: -
S# Items Units Target set for Targets achieved F.Y 2017-18 during F.Y 2017-18 1 LNG Imports Tons 9 Million 5.88 Million 2 LNG Terminal MMCFD 1200 1200 Capacity 3 LPG Production Tons 750,000 782,138 4 LPG Imports Tons 505,264 402,685
2.2.4 DIRECTORATE GENERAL OF PETROLEUM CONCESSIONS (PC) Achievements during the year 2017-18
Leases Granted 19 Wells Spudded 81 Exploratory 45 App./Development 36 Discoveries announced 14 Initial flow from these discoveries Oil (BOPD) 5,354 Gas (MMCFD) 136 Oil Production added (BOPD) 16,320 From new discoveries 5,629 From existing discoveries 10,691 Gas Production added into the system (MMCFD) 322 From new discoveries 66 From existing discoveries 256 Seismic Acquired 2D L.kms) 5,592 3D (Sq.Kms) 1,118
Discoveries announced during 2017-18 Flow Rates Discovery Oil Gas S# Discovery Name Status Company date (BOPD) (MMCFD) 1 Zainab-1 July-2017 Gas Cond. PEL 800 24 2 Bhambhra-1 July-2017 Gas OGDCL 4.5 Tando Allah Yar 3 Sep-2017 Gas Cond. OGDCL 72 10 South West-1 4 Oderolal-1 Sep-2017 Gas UEP 3
Ministry of Energy (Petroleum Division) Year Book 2017-18 16 5 Jhandial-1 Oct-2017 Oil & Gas POL 2160 19 6 Mohri-1 Oct-2017 Gas UEP 2 7 Tipu-1 Nov-2017 Gas MPCL 21.4 8 Dhok Hussain-1 Dec-2017 Gas Cond. OGDCL 360 15.4 9 Hakro-1 Dec-2017 Gas UEP 72 23.4 10 Tharo West-1 Jan-2018 Gas UEP 3 11 Bago-1 Jan-2018 Gas UEP 158 4.7 12 Sukhi-1 Jan-2018 Oil UEP 182 0.05 13 Umair-1 Feb-2018 Gas OGDCL 2.47 14 Adhi South-1 Feb-2018 Oil PPL 1550 2.62 Total 5354 136 Development & Production Leases granted during 2017-18 Grant Area S.No. Lease District Province Operator date (sq. kms) 1 Sohrab Deep Matiari Sindh UEP 24.07.2014 58.64 2 Rajani Matiari Sindh UEP 03.04.2015 32.96 3 Thebo Tando Allahyar Sindh UEP 24.07.2014 2.14 4 Nurpur Deep Matiari Sindh UEP 10.12.2013 1.84 5 Salamat Matiari Sindh UEP 22.07.2015 10.04 6 Ragni Deep Matiari Sindh UEP 19.09.2014 3.11 7 Tolanj Matiari KP MOL 08.09.2016 18.36 8 Aminah Sujawal Sindh PEL 21.02.2017 13.67 9 Ayesha North Badin Sindh PEL 21.02.2017 6.11 10 Tolanj West Kohat KP MOL 31.08.2017 24.39 11 Koonj Shikarpur Sindh MPCL 26.12.2014 7.40 12 Qasim Deep Matiari Sindh UEP 26.02.2014 8.71 13 Soghri Attock & Kohat Punjab OGDCL 09.01.2017 80.05 14 Saleh Tando Allahyar Sindh UEP 07.04.2015 7.95 15 Pakhro Tando M Khan Sindh OGDCL 21.10.2011 1.42 16 Rahim Sanghar Sindh UEP 09.09.2014 13.16 17 Kamal North Sanghar Sindh UEP 20.07.2007 9.72 18 Saand Tando Allahyar Sindh OGDCL 11.01.2016 1.61 19 Zafir Sanghar Sindh PPL 14.03.2018 20.90 GOVERNMENT OF PAKISTAN RECEIPTS 2017-18 S# Classification MM Pak. Rs. 1 Advance yearly rent for Exploration/Prospecting 275.840 Licenses, Mining D&P Leases and application fees 2 Royalty Oil 20,567.690 Gas 37,541.510 Subtotal 58,109.200 3 Dividend Government Holding (Pvt) Ltd 5,000.000 Pakistan Petroleum Ltd. 13,310.610 Mari Petroleum Company Ltd. 115.540 Subtotal 18,426.150 Grand Total 76,811.190
Ministry of Energy (Petroleum Division) Year Book 2017-18 17 CHAPTER 3
GEOLOGICAL SURVEY OF PAKISTAN (GSP)
http://www.gsp.gov.pk/
Ministry of Energy (Petroleum Division) Year Book 2017-18 18 3.1 INTRODUCTION Geological Survey of Pakistan (GSP) is an attached department of the Federal Ministry of Energy (Petroleum Division) with its headquarters office located at Quetta. As per charter, GSP is responsible for study of geology of the country in all pertinent details and to assess its geological resources potential. With a balanced, efficient and competitive structure, GSP is fully capable to explore mineral resources and to undertake geological, geophysical, drilling and geo-technical investigations. During the recent years, the GSP's technical services were frequently availed by different organizations in public and private sector. The GSP also undertakes development projects to cater to immediate needs in the fields of geological mapping and mineral exploration.
3.1 FUNCTIONS AND CORE ACTIVITIES OF GSP
1. Geological mapping and other geoscientific surveys. 2. Scientific investigations for an accurate understanding of the country's natural resources and their prudent management. 3. Geotechnical investigations in connection with the construction of heavy civil engineering projects, soil conservation, watershed management and other environmental and engineering geological studies including, geothermal energy, land use, and town planning. 4. Description of onshore and offshore geological framework and understanding its formation, evolution and resource potential. 5. Geohazard studies associated with earthquakes, volcanic activity, waste disposal, landslides, subsidence and recommendations for hazard prediction/mitigation. 6. Provision of scientific support and technical advice for legislative, regulatory and management decisions of the federal, provincial and local governments.
3.2 INSTITUTIONAL STRUCTURES The GSP was established in 1947 with the creation of Pakistan. The department is headed by the Director General. The technical and other activities of the department are planned and controlled by the Management Advisory Committee (MAC) with all Deputy Director Generals (BPS-20) and Directors (BPS-19) as its members under the Chairmanship of the Director General. REGION WISE DISTRIBUTION OF GAZETTED AND NON- GAZETTED STAFF OF GEOLOGICAL SURVEY OF PAKISTAN Non- Gazetted S.No. Name of Office Gazetted Total Staff Staff 1. GSP Headquarters Office, Quetta. 141 378 519 2. GSP Regional Office, Lahore. 54 109 163 3. GSP Regional Office, Karachi. 43 97 140 4. GSP’s Regional Office, Islamabad. 26 53 79 Ministry of Energy (Petroleum Division) Year Book 2017-18 19 5. GSP Regional Office, Peshawar. 21 53 74 6. GSP Regional Office, AJK. 4 13 17 7. Geoscience Lab, Islamabad. 24 39 63 TOTAL 313 742 1055
CATEGORY WISE DISTRIBUTION OF GAZETTE AND NON- GAZETTED STAFF OF GEOLOGICAL SURVEY OF PAKISTAN
S.No. Category Number 1. Geologist 154 2. Geophysicists 21 3. Chemist 27 4. Drilling Engineers 25 5. Photogrammetrist 07 6. Other Technical 08 7. Administration and Accounts 61 8. Technical Staff 299 9. Ministerial Staff 132 10. BPS 1-2 Staff 321 TOTAL 1055
3.3 BUDGET AND FINANCE
The GSP gets its annual budgetary allocation in the federal budget every year and additional allocation is gained from federal PSDP for executing development projects. The total budget of GSP for the year 2017-18 is 1015.309 million.
GSP’s BUDGET FOR LAST THREE YEARS (In Millions) YEAR 2015-16 2016-17 2017-18 Regular Budget 410 444.31 461.018 Development Budget 348.926 587.476 554.291 Total 758.926 1031.786 1015.309
Ministry of Energy (Petroleum Division) Year Book 2017-18 20 3.4 ACTIVITIES, ACCOMPLISHMENTS AND PROGRESS (2017-18) 3.4.1 GEOLOGICAL MAPPING (1:50,000) Geology of Pakistan is characterized by the interaction of Indian, Arabian and Eurasian plates in different regions under different tectonic settings. This complex interaction has not only created sky scraping mountain ranges in the northern areas but concurrently fabricated significant geological and tectonic features in other regions of Pakistan. GSP is the premier geoscientific organization of the country and has been implementing statuary obligation of geological mapping and other geoscientific surveys. GSP has completed the geological mapping of the entire outcrop area of the country on 1:250,000 scale. In 2017-18, the preliminary geological mapping of approximately 7040 sq. km area on 1:50,000 scales have been completed in different parts of the country. The mapping includes coverage of 1920 sq. km. area in Balochistan; 1280 sq. km. in Punjab, 1280 sq. km. area in KPK, 640 sq. km. in Northern Areas / Gilgit Baltistan and 1280 sq. km area in Sindh and 640 sq. km in AJK.
3.4.2 ECONOMIC GEOLOGY During this period investigations were carried out for the following Economic Geology project. Mineral investigation and geochemical sampling in Ghizer area, Karakoram Range, Gilgit Baltistan. Preliminary study of the occurrence of the aquamarine from Garam Chashma, Lutkho valley, Chitral District , KPK. Exploratory studies of the copper mineralization of Bekeria (Toposheet 38M/16) and adjacent areas, District Upper Dir, Khyber Pakhtunkhwa. Phosphate zone delineation and reserve evaluation of Garhi-Habibulah Quadrangle (Toposheet No. 43F/7), District Mansehra, Khyber Pakhtoonkhwa.
3.4.3 RESEARCH STUDIES Quaternary geological mapping, groundwater investigation and geo-environmental studies of Jampur Quadrangle 39 K/10, District Dera Ghazi Khan, Muzaffargrah and Rajanpur. Study of environmental contaminants in effluents, surface and groundwater, flora and fauna of Kasur area due to tanning industry. Evaluation of aggregate resources for construction material in Sulaiman Range, District DG Khan. Detail geochemical analysis and diagnostic modification of Cambrian Dolomite and their implication on hydrocarbon exploration in Salt Range and Khisor Range of Pakistan. Tectono-stratigraphic model of Eocene Succession in Upper Indus Basin, Pakistan. Imbalance of essential micronutrients in serum samples of viral hepatitis patients of District Jafferabad, Balochistan in perspective of medical geology. Study of toxic elements in soil and groundwater of Faisalabad. Subsurface mapping for geothermal energy resources in Tatta Pani, District Kotli, AJK.
Ministry of Energy (Petroleum Division) Year Book 2016-17 21 Collaboration for joint geological studies between Military College of Engineering, Rislapur and GSP. Biostratigraphic study of Chat Member of Laki Formation on the basis of larger Foraminifera. Hydrogeological investigation, groundwater pollution assessment and risk zone mapping of Gadap, Karachi. Raw material investigation and evaluation of limestone resources for cement industry, District Lasbella. Mineralogical investigation and economic evaluation of laterite, ochre and lignite coal in Sonehri Member of Laki Formation of Laki Range in Southern Kirthar Range. Studies under the project “seismic geohazard microzonation and active tectonics of Palandri, Namb, Bard and surrounding area”.
3.4.4 GEOPHYSICAL EXPLORATION I. Magnetic Mapping Due to financial constraints, approximately 1920 sq. km area has been mapped by ground magnetic survey in Muslim Bagh, Khanozai and QilLa Saifullah area under the approved annual programme of GSP. The fieldwork effectively demarcated mineralized zones and remaining area will be covered in next phase subject to availability of funds. Integrated geophysical survey will be planned after the analysis of magnetic anomalies accordingly. II. Exploration Of Metallic Minerals In Uthal And Bela Areas, District Lasbela, Balochistan (PSDP) IP and Magnetic Survey have been carried out at different locations inferred from geological studies in Uthal area. Potential bodies for metallic mineralization have been selected and will be covered by integrated geophysical approach. Geophysical Studies were undertaken for metallic minerals and to assess the geothermal energy resources in different regions of Pakistan, Induced Polarization (IP) and Magnetic Surveys were carried out at Sukhan, Sap Dohro and Shumali areas near Uthal, Balochistan, for copper mineralization and Electrical Resistivity investigations were carried out for Geothermal Energy Resources in Dadu District, Sindh and Tatta Pani, Kotli District, Azad Kashmir, respectively.
GROUND MAGNETIC SURVEY IN RUGGED TERRAIN OF BELA OPHIOLITES
Ministry of Energy (Petroleum Division) Year Book 2016-17 22 III. Groundwater Studies For Hard Rock Aquifers In Islamabad GSP has effectively carried out geophysical investigations for exploration of ground water resources in different regions of Pakistan. In this regard, the most outstanding achievement is the delineation of hard rock aquifers in early 2000 in Quetta valley. This discovery has averted the looming calamity that included the possibility of shifting a major portion of the Quetta population to other parts of the province. To explore new resources of groundwater in Islamabad, a detailed fieldwork is executed from January to March, 2018, under the annual field program titled “Groundwater Resource Estimation of Hard Rock Aquifers in Islamabad, Capital Territory". Initially, different areas of Islamabad including Barakahu, Quaid-eAzam University and green belts of Kashmir highway have been covered. Deep resistivity survey was executed down to a depth of 500 meters, representing the first ever deep resistivity survey done in Islamabad. The aim of the survey was to demarcate deep hard rock aquifer to provide long term, safe and healthy water supply.
3.4.5 DRILLING OPERATIONS
Geological Survey of Pakistan undertakes drilling operations under PSDP and Annual Field Programmes. During 2017-18, GSP executed several drilling operations under PSDP projects for coal exploration. Recently purchased new drilling rigs have been deputed on PSDP projects to boost the drilling operations.
Drilling Operation in progress 3.4.6 CHEMICAL ANALYSES
Geological Survey of Pakistan has state of the art research facilities for geochemical analysis. Various methods have been developed for the analysis of different samples, ranging from solid fuel (coal) to water, ores to minerals and stream sediments. Analyze 52 samples for 10,198 estimations in GSP labs at Quetta, Lahore, Karachi and Geoscience Lab, Islamabad. Prepared 1049 powdered samples and 750 thin sections and 76 ore blocks. Analyzed 438 samples by XRD/DTA, 157 samples by scanning electronic
Ministry of Energy (Petroleum Division) Year Book 2016-17 23 microscope (SEM), 616 samples by EDS and petrographic studies of 42 samples completed at the GSP geoscience advance research Laboratory, Islamabad
3.5 INTERNATIONAL COLLABORATIONS
During 2017-18 Geosciences investigations were carried out under the following international collaborative projects: 3.5.1 GEOCHEMICAL MAPPING: PAK-SINO GEOLOGICAL SURVEY A collaborative project between Geological Survey of Pakistan (GSP) and China Geological Survey (CGS) was initiated during the 2015-16 under an MOU between two countries. With an objective to geochemically map the country and to collect the geochemical stream sediments from all over Pakistan. Under this project a training program for capacity building of 48 geoscientist from GSP was also arranged. Uptill now more than 3,500 stream sediment samples were collected from 350,000sq.km. area on 1: 1,000,000 scale from Punjab, Sindh, KPK, Balochistan, AJK and Gilgit-Baltistan. The potential anomalies will be chosen for further work on 1:250,000 scale to extend the investigations. The collected samples are being analyzed for 69 elements.
3.6 FOREIGN DELEGATIONS 3.6.1 JIANGSU PROVINCIAL BUREAU OF SURVEYING, MAPPING AND GEO- INFORMATION, CHINA. The delegation from Jiangsu Provincial Bureau of Surveying, Mapping and Geo- information, China visited the Geoscience Lab, Islamabad on 12th December, 2017. The delegation visited all the sections and labs of GARL and was briefed about the procedure and instrumental techniques for analysis of both research and commercial samples. The delegation showed keen interest in signing of MoU between both organizations of China and Pakistan in order to strengthen the cooperation of Science and Technology and to provide the Geographic Information Services for the economic and social development of both countries. 3.6.2 JAPAN COAL ENERGY CENTER, JAPAN A delegation from Japan Coal Energy Centre, Japan visited the GARL, Islamabad on 6th Dec. 2017 to see various facilities available in the lab. The delegation held meeting with the Director General to discuss possibilities of bilateral cooperation between both organizations, particularly in the field of coal exploration. The delegation also visited different sections of lab and lauded the technical expertise and equipment available in the lab.
3.7 INTERNSHIP PROGRAM Geological Survey of Pakistan is main stakeholder in mineral exploration and committed towards professional excellence. At the moment, one internee is getting training under National Internship Program with GSP.
Ministry of Energy (Petroleum Division) Year Book 2016-17 24 3.8 LATEST PUBLICATIONS 3.8.1 TECHNICAL REPORTS The following reports have been published: Geohazard assessment of vulnerable localities in Khizer District, GB, Pakistan. Information Release No. 1023 Geohazard assessment of selected sites of Gilgit District, GB, Pakistan. Information Release No. 1024 Micro-paleontology and stratigraphy of Kirthar Group, Sulaiman Range, District DG Khan. Information Release No. 1025 Vertical electrical sounding for groundwater appraisal at HabibUllah Coastal Power Plant, Quetta. Information Release No. 1026 Exploration of copper, gold and molybdenum deposits in Durbanchah, Mashkichah, District Chagai, Balochistan. Information Release No. 1027 Composite Earthquake Catalogue of Pakistan. Information Release No. 1028 Subsurface mapping of geothermal hot springs at Tatta Pani, AJK using vertical electrical sounding. Information Release No. 1029 Geophysical survey for the exploration of metallic minerals in the Pre-Cambrian shield rocks in Punjab. Record Vol. No. 129.
3.8.2 GEOLOGICAL MAPS PUBLISHED ON 1:50,000 SCALE The following Geological maps have been completed and in the process of printing at different stages: Geological Map Of Malikhore Quadrangle (35 I/5), Khuzdar District, Balochistan. Geological Map Of Bara (38 O/5), Khyber Agency, FATA, Pakistan. Geological Map Of Khajuri Quadrangle (39 F/11), Musakhel District, Balochistan, Pakistan. Geological Map Of Lomai (39 I/1), South Waziristan And District D I Khan, KPK. Geological Map Of Toisar (39 E/16), Musakhael District, Balochistan. Geological Map Of Qamar Din Karez (39 A/6), District Zhob, Balochistan. Geological Map Of Barshor (34 N/5), District Pishin, Balochistan. Geological Map Of Dair (43 B/16), Abbotabad District, KPK. Geological Map Of Kargaz (35 I/6), Khuzdar District, Balochistan. Geological Map Of Chautair (34 N/15), Ziarat District, Balochistan. Geological Map Of Sumal (42 H/11), Khizer District, Gilgit-Baltistan. Geological Map Of The Windri Zard (35 J/6), Khuzdar District, Balochistan. Geological Map Of Shigalu (39 A/16), Zhob District, Balochistan. Geological Map Of Karezat (34 N/6), Pishin District, Balochistan. Geological Map Of Dera Bugti District (39 G/4), Balochistan. Geological Map Of Sham (39 G/7), District Dera Bugti And Kohlu, Balochistan. Geological Map Of Naweoba (39 E/6), District Zhob, Balochistan. Geological Map Of Durbancha (34 D/11), District Washuk, Balochistan.
Ministry of Energy (Petroleum Division) Year Book 2016-17 25 Geological Map Of North Waziristan Agency (38 H/13), FATA. Geological Map Of Chitarwata (39 I/4), District Musakhel And Dg Khan, Balochistan And Punjab. Geological Map Of Ghorak Hills And Manchar Lake Area (35 N), District Dadu, Benazirabad, Sindh And Khuzdar, Lasbela District, Balochistan.
3.9 PUBLIC SECTOR DEVELOPMENT PROJECTS (PSDP)
3.9.1 Appraisal Of Newly Discovered Coal Resources Of Badin Coal Field And Its Adjoining Areas Of Southern Sindh PSDP No. 700 Location District Badin, Mirpurkhas, Sanghar Project Period Initial Plan: Three Years (2009-12) Revised Project Period 2013-19 Cost Rs.170.633 Million Date of Approval CDWP on19.11.2009 Date of Commencement 1.07.2013 Completion Date 30.06.2019 Expenditure upto 30.06.2017 128.920 Million PSDP Allocation (2017-18) 37.977 Million Upto Date Progress Fifteen bore holes with a cumulative depth of 5877 meters have been completed in different regions of Badin and Mirpurkhas Districts, covering an area of 2200 square kilometers. Coal seams have been encountered in all drill holes at various depths. Geological logging of boreholes and analysis of core samples has been completed. Two newly purchased multipurpose drilling rigs have been deployed at Badin Coal Project site to enhance the drilling activities. Technical report of the project is in progress. 3.9.2 Acquisition Of Four Drilling Rigs With Accessories For The Geological Survey Of Pakistan
PSDP No. 699 Location Quetta Project Period Original plan one year (2009-2010) Revised Project Period 2013-19 Cost Rs.665.807 Million Date of Approval CDWP on 19.11.2009 Actual Date of Commencement 01.07.2015 Completion Date 30.06.2019 Expenditure up to 30.06.2017 249.272 Million PSDP Allocation (2017-18) Rs.415.807 Million
Ministry of Energy (Petroleum Division) Year Book 2016-17 26 Upto Date Progress Two 275 HP, Hydraulic, Truck Mounted Multipurpose Drilling Rigs with drilling capacities of 1300-2000 meters HQ and 2000-3000 meters NQ, with accessories and spare parts of rigs and trucks have been purchased from Italy on FOR basis. Process for purchasing 2 more drilling rigs is in progress in strict adherence with PPRA rules.
3.9.3 Exploration Of Tertiary Coal In Central Salt Range, Punjab PSDP No. 702 Location Central Salt Range, District Chakwal, Punjab Project Period Original planned one year 2010-13 Revised Project Period 2013-18 Cost Rs.43.350 Million Date of Approval DDWP on 27.01.2010 Date of Commencement 01.07.2013 Completion Date 30.06.2018 Expenditure up to 30.06.2017 Rs. 36.285 Million PSDP Allocation (2017-18) Rs. 3.492 Million
Upto Date Progress Geological mapping over 470. Sq. km area on 1:10,000 scale has been completed. Section measurement completed at 12 sites. Drilling of 5 exploratory borehole with a cumulative depth of 742 meters, have been completed in different regions of Salt Range. Coal seams encountered in all holes at various depths. Geological logging of boreholes and chemical analysis of core samples has been completed. Final technical report in progress.
3.9.4 Exploration And Evaluation Of Metallic Minerals In Uthal And Bela Areas, District Lasbela, Balochistan. PSDP No 701 Location Uthal and Bela Areas, District Lasbela, Balochistan Project Period Original Planned: 2 Years (2015-17) Revised Project Period 2015-18 Cost Rs. 56.70 Million Date of Approval DDWP on 11.09.2015 Actual Date of Commencement 1.07.2015 Completion Date 30.06.2018 (extended for one year) Expenditure upto 30.06.2017 Rs. 33.099 Million PSDP Allocation (2017-18) Rs. 8.992 Million
Ministry of Energy (Petroleum Division) Year Book 2016-17 27 Upto Date Progress Induced polarization and magnetic surveys have been carried out at Sukhan, Sap Dohro and Shumali areas near Uthal Town. Preliminary Geological data of different formations/rock units has been collected. Geological map of project area on 1:40,000 scale has been completed with full structural details. Geochemical sampling from project area has been completed. Stream sediments from half of the project area have been analyzed for base metals, rare earth elements (REE), and other strategic metals from Akita University, Japan. The results are encouraging and indicate that project area has high potential for titanium, nickel, copper, chromium and barium.
3.5 Exploration And Evaluation Of Coal In Nosham And Bahlol Areas, Balochistan. PSDP No 703 Location Nosham and Bahlol area, District Kohlu and Barkhan Project Period 2017-19 Cost 42.318 million Date of Approval 15.08.2017 Date of Commencement 08.01.2018 Completion Date 30.06.2019 Expenditure up to 30.06.201813.470 million PSDP Allocation (2018-19) 18.295 million
Upto Date Progress Initial study of maps, toposheets, aerial photographs and satellite imageries completed. Data has been transferred from aerial photographs/satellite imageries onto toposheets. Due to prevailing security concerns in field area, the progress of the project has severely been hampered and caused inordinate delay in achieving the targets. Preliminary reconnaissance geological mapping has been commenced.
Ministry of Energy (Petroleum Division) Year Book 2016-17 28 3.10 PLANS FOR THE YEAR 2018-19
3.10.1 ONGOING PSDP PROJECTS (2018-19)
S. PROJECT ALLOCATION TARGETS No. Drilling of 07 boreholes of 400 to 500m. Geological and Geophysical logging of APPRAISAL OF NEWLY boreholes drilled. Chemical and technological DISCOVERED COAL tests of collected coal samples from coal RESOURCES OF BADIN seams of 75 cm and above thickness. 1 13.736 millions COAL FIELD AND ITS Water pumping tests for knowing the mine- ADJOINING AREAS OF ability of coal. SOUTHERN SINDH. Techno-economic studies through local / foreign consultants for finalizing technical documents. ACQUISITION OF FOUR 416.535 2 DRILLING RIGS WITH Purchase of two drilling rigs and accessories. millions ACCESSORIES FOR GSP. Detailed structural mapping on a scale of 1:40,000. Measurement of 25 stratigraphic EXPLORATION AND sections. EVALUATION OF Identification of suitable drilling sites on the METALLIC MINERALS IN basis of the geological and geophysical data. UTHAL AND BELA Drilling of 02 bore holes for a cumulative 3 14.609 millions AREAS, DISTRICT depth of 750 meters. LASBELA, BALOCHISTAN. Geological and geophysical logging of the bore holes. Collection of field and drill holes samples. Chemical analysis and petrographic studies. Computation of reserves of ore bodies. Geological mapping of 75 sq. km. on 1:10,000 scale for promising zones in terms of coal. Measurement of 5 stratigraphic sections to be followed by sedimentological and paleo- EXPLORATION AND ntological studies. EVALUATION OF COAL IN Identification of suitable drilling sites. 4 18.295 millions NOSHAM AND BAHLOL Drilling of 2 bore holes for a cumulative depth AREAS, BALOCHISTAN. of 600 meters. Geological / geophysical logging of the bore holes. Collection of 20 coal samples from core and nearby mines for chemical analysis.
Ministry of Energy (Petroleum Division) Year Book 2016-17 29 3.10.2 PROPOSED PSDP PROJECTS Upgradation of accommodation facilities for field officers at GSP, Quetta. Integrated geological and geophysical investigations for mineral prospecting, groundwater potential and bed rock modeling along CPEC route. Upgradation and strengthening of Human Resource Development Centre of Geoscience Advance Research Laboratories. Upgradation of chemical and petrology-mineralogy labs along with establishment of water lab at Geological Survey of Pakistan, Southern Zone. Karachi.
3.10.3 ANNUAL FIELD PROGRAMMES (2018-19) The following annual field programmes have been planned for 2018-19: 1. Geological mapping, mineral investigation, tectonic and structural evaluation of Toposheet No. 39 E/12, Aghbargai area, District Zhob, Balochistan. 2. Regional geological mapping on 1:50000 scale of Toposheet No. 35 C/15 along with tectonic and geomorphic evaluation, Makran Division, District Gawadar, Balochistan. 3. Geological mapping (1:50,000) scale, structural interpretation and mineral exploration of Toposheet No. 39/B/4, District Ziarat and Harnai Balochistan. 4. Paleontology and stratigraphy correlation studies of Early Eocene, Ghazij Group with special emphasis on Drug Formation around Mangroth, Kingri and Rakhni area. 5. Geological mapping on (1:50,000) scale and assessment of mineral resources, Toposheet No. 39 I/7, District D G Khan, Punjab. 6. Geological mapping, tectonic and structural evaluation of Toposheet No. 34 N/7, Zarghun area, District Ziarat-Harnai, Balochistan. 7. (2nd Phase) Semi-detailed ground magnetic survey for the exploration of metallic minerals in the ophiolitic belt of Muslim Bagh, Khanozai and surrounding areas, Balochistan. 8. Geochemistry of laterites of Ziarat and adjacent area for the evaluation of its feasibility as a polymetallic ore, Balochistan. 9. Impact of lead/zinc mining on environment and human health in Duddar, District Lasbela, Balochistan. 10. A preliminary engineering geological evaluation of rock slope failure with remedial measures along Zhob Dhanasar road section (B-50). 11. Geological mapping and structural evaluation (Toposheet No: 34 / 14), District Qila saifullah and Muslim Bagh, Balochistan. 12. Geological mapping on (1:50000) and, mineral exploration of Quadrangle No. 39 E/12, District Zhob, Musakhel, Balochistan. 13. Exploratory studies of metallic and non-metallic mineral along Chaman segment of the Chaman Transform Fault Systems.
Ministry of Energy (Petroleum Division) Year Book 2016-17 30 14. Geology, petrology, geochemistry and economic importance of Zhob Ophiolites, Northwestern Pakistan. 15. Regional geological mapping and mineral investigation of Toposheet No. 35 C/07 on 1:50000 along with tectonic and geomorphic evaluation, Makran Division, District Gawadar, Balochistan. 16. Geological mapping and geoenvironmental studies of Kot Chutta Quadrangle (Toposheet No. 39 K/9) District Dera Ghazi Khan, Muzaffargarh and Rajanpur. 17. Geological mapping of Sabzal area 39 G/16, at 1:50000 Scale, District Rajanpur, Punjab. 18. Evaluation of aggregate resources for construction material in Sulaiman Range, District Dera Ghazi Khan and Taunsa (Toposheet No. 39 J/8). 19. Study of environment contaminants in effluents, surface and groundwater, fauna and flora of Kasur area due to ‘tanning industry’. 20. Electrical resistivity survey for exploration of groundwater at Pattoki and its surroundings, District Kasur, Punjab. 21. Genesis and economic potential of sulfide deposits of Bagrot valley, Tehsil Danyor, District Gilgit, Gilgit Baltistan (GB).
22. Identification of high risk areas with reference to geological hazards (landslides, debris flows and flash floods), along Gilgit-Shandur-Chitral road Ghizer District, Gilgit Baltistan and Chitral District, KPK. 23. Geological mapping and mineral investigation of Quadrangle 42-D/16, District Ghizer, Gilgit Baltistan. 24. Landslide susceptibility map of Gahkuch area (1:50000). 25. Geological mapping and mineral investigation of Quarangle 42-H/6, Yasin Valley, District Ghizer, Gilgit Baltistan. 26. Spot sampling of antimony and copper of Skardu Division, Diamer Division and Gilgit Division of Gilgit Baltistan. 27. The environmental Impact/hazard assessment of mining activities in Gilgit Baltistan. 28. Geochemical study of soils, roads, dust, and groundwater of Islamabad and its surroundings. 29. Geochemistry, petrography and magnetic susceptibility of carbonatite from NW Pakistan with emphasis on its origin and ‘rare earth elements’ potential. 30. Comparative evaluation of lithological and mineral information extraction capabilities of Hyperion and ASTER sensors for outcrop area of Neowba, Zhob District, Balochistan. 31. Groundwater resources estimation of hardrock aquifer and related issues using advance geophysical techniques in Islamabad along green belts and highways Capital Territory, Pakistan (Phase -II). Ministry of Energy (Petroleum Division) Year Book 2016-17 31 32. Structural, electrical and electrochemical analysis of commercial and naturally occurring minerals for energy storage devices. 33. Effects of various binders on texture and analysis of pressed pellet. 34. Geological mapping and mineral investigation of Kachura area, Toposheet No. 43M/07, District Skardu, Gilgit Baltistan. 35. Landslide hazard mapping along the Muzaffarabad-Athmuqam Trunk road in Neelum and Muzaffarabad District , Azad Kashmir. 36. Geochemical exploration for mineral potential of Naurinar, Sarul, Surgun and surrounding areas of Neelum District, Azad Kashmir. 37. Geological mapping and mineral exploration of Toposheet No. 43-J/2 at 15:000 scale, Doarian and Dudhnial, Neelum District, Azad Kashmir. 38. Follow-up geochemical exploration and genetic study of gold occurrence in Nagarparkar area, District Tharparkar, Sindh. 39. Preliminary investigation for placer minerals around Manchar Lake, Sindh. 40. Hyperspectral analysis of metallic minerals In Lasbella and Khuzdar, Balochistan. 41. Spatio-temporal study of groundwater contamination and its possible sources RS and GIS based study in District Jamshoro and Thatta, Sindh. 42. Semi-detailed ground magnetic survey of Ranikot area for demarcation of subsurface geological structures and delineation of subsurface metallic mineral deposits of economic interest. 43. Geological mapping and mineral investigation of Nawagai Quadrangle, Toposheet No. 43B/11, District Buner, Khyber Pakhtoonkhwa. 44. Regional geological mapping and preliminary mineral investigation of Shekh Budin Quadrangle, District Laki Marwat (former District Bannu) and District D.I. Khan, Toposheet No. 38 L/15, KP. 45. Updating and digitization of the mineral map of Khyber Pakhtunkhwa. 46. Exploration studies of metallic and non-metallic mineralization along the Turkho river and its surrounding area, District Upper Chitral, Khyber Pakhtunkhwa. 47. Exploration and evaluation of metallic minerals and non-metallic minerals along Indus Suture Zone (ISZ) in Swat and Shangla District, Khyber Pakhtunkhwa.
3.11 EVENTS
3.11.1 INTERNATIONAL MUSEUM WEEK - 2018 International Museum Week – 2018 was celebrated at GSP Headquarter Quetta with the theme “Hyper-Connected Museums, New Approaches, New Publics” from 18th to 25th May, 2018. The ceremony was inaugurated by the Director General, Mr. Nazar Ul Islam and Additional Chief Secretary (Balochistan), Mr. Naseeb-Ullah Khan Bazai. Delegates, visitors Ministry of Energy (Petroleum Division) Year Book 2016-17 32 and a large number of students visited GSP museum with curiosity to know about museum of earth sciences and its associated sections. Geological Survey of Pakistan houses Museum of Earth Sciences at its headquarters office, Quetta. This museum stands out very prominently among all such institutions in the country on the basis of richness of scope and the variety of its collection. This museum has seven thematic galleries including Rocks and Minerals, Gem Hall, Building/ Decorative Stones, Astrology and Paleontology. The Paleontological galleries are most exquisite and have been embellished with endeavors of GSP and joint collaboration with foreign paleontologist. Startling fossils in this section include forty seven (47) million year old walking whale, Balochiterium (largest ever mammal), mammoth and extinct marine organisms especially ammonites. The excursion to this is a special itinerary through geological time for all walks of life.
3.11.2 CLEAN AND GREEN DRIVE Geological Survey of Pakistan organized Clean and Green Drive from 2nd April to 6th April 2018, with the aim of "Let’s Go Green to Clean GSP". The drive was focused on plantation of new seedling and removal of weeds and grass to verdant the outlook of lawns of GSP
Ministry of Energy (Petroleum Division) Year Book 2016-17 33 CHAPTER 4
HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN HDIP
Ministry of Energy (Petroleum Division) Year Book 2016-17 34 4.1 INTRODUCTION
Hydrocarbon Development Institute of Pakistan (HDIP) is an autonomous body under the Ministry of Energy (Petroleum Division). HDIP was established in 1975 through a Resolution of the Government of Pakistan. It has been re-established as an autonomous body through an Act of Parliament in January 2006. The activities of the Institute are regulated by a Board of Governors chaired by the Federal Minister for Ministry of Energy (Petroleum Division), while its Chief Executive is designated as Director General and Secretary of the Board.
I. Institutional Structure
Board of Governors
Chairman, 1. Minister for Energy, Petroleum Division, Islamabad. Secretary, 2. Ministry of Energy, Petroleum Division, Islamabad. Director General/Chief Executive, 3. Hydrocarbon Development Institute of Pakistan, Islamabad, Financial Advisor, 4. Ministry of Energy, Petroleum Division, Islamabad. Director General (Gas), 5. Policy Wing, M/o Energy, Petroleum Division, Islamabad Chief Fuels (Energy Wing), 6. Planning & Development Division, Islamabad Prof. Dr. Fazeelat Tahira, 7. Professor, University of Engineering & Technology, Lahore. Prof. Dr. Masoom Yasinzai, 8. Rector, International Islamic University, Islamabad. Dr. Shahina Tariq, 9. Chairperson, Metrology Department, COMSATS, Islamabad. Mr. Abdul Wahid Chughtai, 10. Former Asset Manager, OMV Pakistan / Chairman, Pakistan Association of Petroleum Geoscientists.
Ministry of Energy (Petroleum Division) Year Book 2016-17 35 HDIP carries out applied research and renders advice to the Government on scientific and technical matters in the oil and gas sector. HDIP also provides consultancy and laboratory services for the oil and gas industry. II. Establishment
The Head Office of the Institute is at Islamabad and it maintains four Petroleum Testing Centers at Lahore, Peshawar, Quetta, and Multan. HDIP also operates four CNG Stations, one each at Islamabad, Lahore, Peshawar and Quetta and five Cylinder Testing Labs at Islamabad, Karachi, Lahore, Peshawar and Quetta. HDIP has 303 employees including 58 Scientists and Engineers. The achievements of HDIP during the year 2017-18 are as under:
4.2. UPSTREAM ACTIVITIES-OIL & GAS EXPLORATION A. Ongoing Research Activities: “Geochemical Investigation of Origin of Heavy Crude Oils from Southern Potwar, Upper Indus Basin”.
B. Proposed Projects: Study of Petroleum System of Kohat Sub-Basin to establish Oil-Oil and Oil-Source correlation. Up gradation Laboratory facilities of HDIP for Upstream Activities. (subject to allocation of funds). Up-gradation is part of PETCORE PC-I submitted for approval.
C. Consultancy and Laboratory Services
1. Contracts/Bids – Contract with PPL: HDIP Operation Office signed a Contract with PPL for Geochemical Analysis for cuttings/cores 230 samples from Kharan-X1 for geochemical screening. 2nd contract was signed with PPL for geochemical screening of 120 well cuttings and 04 core plug samples along with 147 well cuttings from Kalat X-1 and 67 well cutting samples from Hub X-1. 2. Samples Analyzed for Geochemical Parameters: 867 samples have been analyzed for geochemical parameters and 106 samples for Geological studies during the reporting period. 3. Clients Served:
The Institute offered services to the following Companies/Organizations: a) NCEG, Peshawar University, Peshawar. b) Pakistan Petroleum Limited. c) Oil and Gas Development Company Ltd. (OGDCL).
Ministry of Energy (Petroleum Division) Year Book 2016-17 36 d) Maple Gate Consultant, Islamabad. e) PTRL, Islamabad. f) Pakistan Exploration Company Limited, Islamabad. g) PPM, Islamabad. h) University of Punjab, Lahore. i) Ch. Inam Ur Rahman, Islamabad. j) Bahria University, Islamabad. k) Bacha Khan University, Charsada. l) Fauji Fertilizer, Rawalpindi. m) FATA Oil and Gas Facilitation Unit, Peshawar. n) Shell Pakistan Limited. o) Khyber Oil and Gas Company, Peshawar. p) Malakand University, Malakand. q) Syed Bilawal Ali, University of Malaya, Malaysia. r) Mr. Shahzad Ahmad, Abbottabad. s) Electrical and Mechanical Engineering, Islamabad.
4. Trainings: HDIP Petroleum Geology Division provided trainings to 14 MS/BS Geology Students from Bahria University, Karakoram International University, COMSATS, Quaid-i-Azam University, University of Haripur and University of AJK, Muzaffarabad.
D. Organization of Well Core Cuttings in Pakistan Petroleum Core House (PETCORE) During the reported period Pakistan Petroleum Core house (PETCORE) received core of 11 wells and drill cutting samples of 158 wells. For E & P company 270 drill cutting samples were processed. During reported year HDIP submitted a development project "Expansion and Up-gradation of Pakistan Petroleum Core house (PETCORE) for its Sustainable Operations to facilitate Oil & Gas Exploration Research in Pakistan". National Assembly Standing Committee on Energy in its meeting held on 10th July, 2017 recommended provision of PSDP funds to HDIP for the project. Finance Division allocated a sum of Rs.100/- million for the year 2018-19 for the said project. The PETCORE project was approved by CDWP in its meeting held on May 2, 2018 and Project Authorization received on May 22nd 2018. The project implementation was started with establishment of PMU, appointment of Project Director, registration with online PMES, submission of annual work plan/ cash plan, submission of demand release, and other necessary paperwork. Later the project funding was excluded from CFY 2018-19 during rationalizing the PSDP 2018-19 in September 2018. The PETCORE project is expected to start as soon as funds are available. Ministry of Energy (Petroleum Division) Year Book 2016-17 37 4.3. DOWNSTREAM ACTIVITIES
HDIP’s Downstream (Petroleum Testing and Research Facilities) On the downstream side, HDIP’s main petroleum analytical labs located at Karachi and Islamabad together with smaller units at Peshawar, Lahore, Multan, and Quetta, cover a range of analytical facilities for crude oil, petroleum products and natural gas. These labs provide standard analytical services to the national oil and gas industry and work for the Government as the authorized labs for quality certification.
As per directives of OGRA, HDIP laboratories complex Karachi Operations is providing round the clock laboratory services for sampling and testing of ship samples and imported lubricants to Oil Marketing Companies.
The details of services being provided on behalf of OGRA and M/o Energy (Petroleum Wing) are given hereunder:- a) Product Quality Control Inspections of Ship samples. b) Products quality control inspections for imported lubricants. c) Annual inspections to Blending/Reclamation plants. d) Quarterly products Quality Control Inspections of Blending/Reclamation/Grease and Transformer plants. e) Monthly and bi-annual products quality control inspections of OMC, s depots. f) Monthly and weekly product quality control inspections of refineries. g) Retail outlet inspections for product quality control as and when directed by OGRA. h) HDIP has prepared two (2) major projects for the up-gradation of lab facilities through out Pakistan. In this regard 02 x PC-1’s have already been submitted to authorities (M/o Planning and Development) for approval. Total Samples Analyzed by HDIP Petroleum Testing Labs during the review periods are 7,854 resulting in revenue of Rs. 175.86 Millions.
4.4. HDIP CNG OPERATIONS HDIP is a Technical Support Institution for Ministry of Energy (Petroleum Division), operating four CNG Stations located at Islamabad, Lahore, Peshawar, Quetta and five Cylinder Testing Laboratories in the country. For the past 3 decades, HDIP is known for the success story of introducing CNG as an alternate fuel and with continuous endeavor, since 1997, elevating Pakistan to the highest level of global leader. HDIP has also initiated
Ministry of Energy (Petroleum Division) Year Book 2016-17 38 function of training of Technical manpower, increase in sale at HDIP CNG Stations by increasing compression capacity, provision of consultancy services to CNG industries, outsourcing of CNG Cylinder Testing Laboratories in major cities of Pakistan, annual inspection of CNG converted vehicles and annual testing of CNG conversion kits manufactured locally/supplied from abroad.
i) CNG Inspection Wing
During the review period, altogether 507 CNG Safety Inspections (including Annual Inspections, Re-Inspections, Pre-Commissioning and Accident Inspections) of different CNG Stations were performed, which resulted in revenue of Rs. 9.94 Millions.
ii) CNG Sale at CNG Stations
During the review period, revenue for sales of CNG at CNG Stations Islamabad, Lahore, Peshawar and Quetta was about Rs. 154.336 Millions.
iii) CNG Cylinder Testing Laboratories Karachi, Islamabad, Lahore, Peshawar, Quetta and outsourced Laboratories.
During the review period, altogether 36,120 CNG Cylinders from the different vehicles and from different CNG Stations were tested in which 8,272 were Vehicle Cylinders and 27,848 were Storage Cylinders of different CNG Stations in Karachi, Islamabad, Lahore, Peshawar and Quetta. Revenue generated from CTLs Islamabad, Karachi, Lahore, Peshawar and Quetta was Rs. 101.94 Millions.
iv) Trainings: CNG Operations conducted training courses in different professional categories i.e. Compressor Operator, Refueling Attendant and CNG Conversion. 17 technicians from private sector have completed trainings under this programme.
4.5. PUBLICATIONS AND INFORMATION DISSEMINATION This institute maintains the National Energy Database and also plays an effective supportive role in the development of domestic energy sector by disseminating vital technical information in the form of an annual publication “Pakistan Energy Yearbook”. HDIP also provides energy sector data to Ministry of Energy (Petroleum Division) and line ministries, universities, national and international companies/organizations such as WEC, IEA, Oil and Gas Sector Companies etc.
Ministry of Energy (Petroleum Division) Year Book 2016-17 39 Pakistan Energy Yearbook 2017 and Pakistan Journal of Hydrocarbon Research, Volume 24 has been published by this Institute. The publication of Pakistan Energy Yearbook 2018 and Pakistan Journal of Hydrocarbon Research Volume 25 is in process.
4.6. CONCLUSION The HDIP thus works as the scientific and technical arm of the Ministry of Energy (Petroleum Division) in the oil, gas sectors while at the same time it facilitates private sector investment by providing professional guidance and advice. Although a public sector outfit, it meets about 83% of its budget from its own resources performed to high professional standards. .
Ministry of Energy (Petroleum Division) Year Book 2016-17 40 CHAPTER 5
OIL AND GAS DEVELOPMENT COMPANY LIMITED
Ministry of Energy (Petroleum Division) Year Book 2016-17 41 5.1 BACKGROUND: Oil & Gas Development Company Limited (OGDCL) is the largest Exploration & Production (E&P) Company in Pakistan, listed on Pakistan Stock Exchange as well as on London Stock Exchange.
OGDCL was initially created under an Ordinance in 1961, as a Public Sector Corporation and was later converted from a statutory Corporation into a Public Limited Company w.e.f October 23, 1997. Currently, Government of Pakistan holds 74.97% equity in the Company.
Government of Pakistan (GOP) divested 4.98% of its shareholding in the Company in November 2003 through Initial Public Offering (IPO). GOP further divested 9.5% of its shareholdings through secondary offering in the form of Global Depository Shares (GDS) to international and local institutional investors in December 2006 and 0.5% to the general public in February 2007.
5.2 Physical Achievement during fiscal year 2017-18: Exploration and Development Activities: OGDCL’s concession portfolio contains a diverse portfolio of exploratory assets with the potential to offer robust short, medium and long term growth opportunities. As on 30th June, 2018, the Company’s exploratory assets constituted of 47 owned and operated joint venture exploration licenses along with holding working interest in 04 blocks operated by other Exploration & Production companies. Having spread across all four provinces of the Country, the Company’s exploratory licenses covered an area of 89,745 sq. km as of 30th June 2018, which is the largest exploration acreage held by any E&P Company in Pakistan.
5.3 Seismic Activities: During the fiscal year 2017-18, the Company carried out intensified exploratory efforts which culminated in 2D and 3D seismic data acquisition of 2,073 Line km and 792 Sq. km respectively. Moreover, 5,690 Line km of 2D seismic data and 4,245 sq. km of 3D seismic data have been processed/reprocessed using in-house resources.
5.4 Wells: OGDCL during the year under review spud twenty (20) wells including twelve (12) exploratory/appraisal wells namely Qadir Wali-1, Shawa X-1, Urs-1, Ganjo Takkar-1, Umair-1, Khirun-1, Nur West-1, Sheikhan, Bhutta-1, Chak 25-1, Zin Deep-2, Wasan-1 and Soghri X-3 and eight (8) development wells namely Mela-6, Kunnar West-2, Pasakhi North- 3, Nashpa-9, Kunnar-12, Qadirpur-59 and HRL-13 & 14.
5.5 Discoveries: OGDCL’s exploratory endeavors to locate new hydrocarbon reserves during the year resulted in four (4) new oil and gas discoveries having expected cumulative daily production of 47 MMcf of gas and 749 barrels of oil. Discoveries include Bhambara-1 in District Sukkur, Tando Allah Yar South West-1 in District Hyderabad, Umair-1 in District Ghotki, Sindh province and Dhok Hussain-1 in District Kohat, KPK province.
5.6 Production: OGDCL being a state owned enterprise is making all viable efforts to maintain and optimize hydrocarbon production through expediting connectivity of newly discovered exploratory,
Ministry of Energy (Petroleum Division) Year Book 2016-17 42 appraisal and development wells in the system coupled with employing latest production techniques to minimize natural decline in mature fields. In this pursuit, the Company during the fiscal year 2017-18 injected twenty five (25) operated wells in the production gathering system. Injected wells cumulatively yielded gross crude oil and gas production of 581,412 barrels and 17,628 MMcf respectively. Moreover, Company’s production during FY-2017-18 contributed around 47% and 29% towards the Country’s total oil and natural gas production respectively. In addition to the above, OGDCL during the year under review carried out successful workover jobs with rig in an effort to arrest natural decline and sustain production from mature wells. Moreover to induce improvement in the current well flow parameters, pressure build-up survey jobs were completed at various wells of producing fields mainly Kunnar, KPD, Soghri, Uch, Sinjhoro, Qadirpur and Dakhni.
5.8 Future Outlook: OGDCL based on robust financial position and debt free balance sheet is committed to carry on exploratory endeavors coupled with maintaining conservative financial framework and exercising cost controls to deliver upstream growth and improved profit margins in the future. In this regard, significant investment will be made in seismic data acquisition, drilling campaigns and processing/reprocessing of seismic data to identify prospective areas that could offer commercial oil and gas reserves. Moreover, the Company in pursuit of its vision will actively seek suitable farm-in/farm-out opportunities as well as acquisition of concessions both in domestic and international markets, wherein the low cost operator status comes into play for the purpose of reserves accretion, production enhancement and value addition for shareholders.
Ministry of Energy (Petroleum Division) Year Book 2016-17 43 CHAPTER 6
www.ppl.com.pk
PAKISTAN PETROLEUM LIMITED (PPL)
Ministry of Energy (Petroleum Division) Year Book 2016-17 44 6.1. INTRODUCTION: Pakistan Petroleum Limited was incorporated in 1950 as a public limited company. Being the pioneer of natural gas industry in the country, PPL has been a frontline player in the energy sector, mainly conducting exploration, prospecting, development and production of oil & gas resources since the mid-1950s. As a major supplier of natural gas, PPL today contributes around 22 percent of the country's total natural gas supplies besides producing substantial quantities of Crude Oil, Natural Gas Liquid, Liquefied Petroleum Gas and Barytes.
6.2. VISION: To achieve energy self-sufficiency for Pakistan by becoming the most successful and efficient discoverer and producer of oil and gas.
6.3. MISSION STATEMENT: To serve the people of Pakistan in an area critical to their economic development by employing, training and developing the best people available and empowering them to deliver extraordinary results while insisting that they conform to the highest standards of professional and ethical conduct.
6.4. MAJOR ACHEIVEMENTS OF THE YEAR 2017-18 has been another exceptional year for the Company with the following major achievements:
Drilled 11 exploration wells and 8 development wells in Company-operated areas. Similarly, drilled 7 exploration wells and 7 development wells in partner-operated areas. One hydrocarbon discovery in operated area Adhi South X-1. Overall production recorded at 988 MMscfde in FY 2017-18 despite the natural decline in mature fields like Sui and Kandhkot and lower than capacity gas offtakes at Kandhkot. LPG-III Plant commissioned in Nashpa. Two D&PLs granted in Zafir (Gambat South block) and Fazal (Hala block) in June and July 2018, respectively. Commencement of production from new reservoir in Kandhkot (SUL West Dome). Continuous improvement in drilling efficiency; new record set for fastest well drilled at Adhi in 55 days (Adhi-31). Highest-ever daily production of 262 MMscfd from Kandhkot achieved. Yearly average production (207 MMscfde) is 11% more than previous year. Highest-ever daily production from Adhi: Crude Oil (10,938 BOPD), Gas (80 MMscfd) and LPG (324 MT/D). Yearly average production is 11% more than the previous year. Highest-ever barytes sales by BME of 206,921 MT. Acquired 2,422 Line Km 2D seismic in operated blocks. In-house seismic data processing of 5,189 Line Km 2D and 320 Sq Km 3D. Corporate donation programme continued to further strengthen CSR efforts for deserving communities in urban areas. Organized third PPL Balochistan Football Cup in 2018.
Ministry of Energy (Petroleum Division) Year Book 2017-18 45 Organized 235 in-house training sessions, including 36 sessions conducted by foreign facilitators. Improved automation of processes, including e- procurement and employee self-service, through SAP. Successfully implemented enterprise risk management automation solution during the year, becoming the first public sector company to have in place a fully automated Enterprise Risk Management programme.
6.5. OPERATIONAL OVERVIEW I. OPERATIONS: The Company currently produces from operated fields at Sui, Kandhkot, Adhi, Mazarani, Chachar, Hala (Adam, Adam West) and Gambat South (Shahdadpur, Shahdadpur West, Kabir X-1 EWT). In addition, it has working interests in 19 partner-operated producing fields / discoveries. The Company strives to play its role in meeting the country’s energy requirements by focusing on production enhancement through the use of advanced technology and management skills. Furthermore, the Company has an operated interest in Bolan Mining Enterprise (BME), which is a joint operation between the Company and Government of
The Company’s average productions of gas and oil have marginally declined by 1.9% and 2.6%, respectively, whereas LPG production increased by 17.3% as compared to the previous year. The primary reason for decrease in production is natural decline from mature fields and lower offtake
Ministry of Energy (Petroleum Division) Year Book 2017-18 46 by buyers, particularly from Kandhkot Gas Field. A comparison of the current year’s production (net to PPL) to the previous year is given below:
Production of hydrocarbons during the year, including the Company’s share from joint operations, averaged at about 885 MMscfd of gas, 15,877 bbl per day of oil/NGL/condensate and 261 metric tonnes of LPG per day.
The Company’s major customers are Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, Central Power Generation Company Limited and Attock Refinery Limited.
Asset-wise key initiatives taken by the Company during the year are given below: 6.6 OPERATED FIELDS: SUI Gas field:
Drilled and completed two development wells, wells Sui-102 (U) and Sui-103 (U), whereas, TD of 3rd development well Sui-104 (M) was achieved on 30th June 2018 and completion operation is in progress. Sui-102 (U) was commissioned, contributing about 7 MMscfd gas. Two workovers (Sui-36 and Sui-40) were undertaken during 2017-18, contributing a net gain of 3 MMscfd in the system. Seven rig-less production optimization jobs (including additional perforations, removing downhole restriction and stimulation) were carried out resulting in a gain of 12 MMscfd. Completed ‘Reserves Certification Study’ through a third party international consultant (Schlumberger) and 130 BCF reserves were added in the 1P category. Maintenance, upgradation and enhancement of plant reliability activities were undertaken at both Purification Plant and Sui Field Gas Compression Station, including commissioning of 6th and 7th evaporative cooler, major overhauls of three gas turbines, replacement of instrument and plant air control system at SFGCS and commissioning of fire and gas system and DCS upgradation at Purification Plant.
Ministry of Energy (Petroleum Division) Year Book 2017-18 47 6.7 KANDHKOT Gas field:
Highest-ever daily gas production of 262 MMscfd (the daily average was 207 MMscfd). Development well, KDT-39(U/M), commissioned at 17 MMscfd, marking first commercial gas supply from SUL West Dome of Kandhkot field. Sidetrack operation of KDT-32(U/M) completed and well commissioned at 21 MMscfd. Workover of KDT-15(U) carried out and well commissioned at 8.2 MMscfd. Wells KDT-43(M), KDT-44(U) & KDT-41(M), spudded during last quarter of 2016-17, successfully completed and commissioned, thereby increasing field deliverability by 24 MMscfd. Seven well interventions carried out for production enhancement and addressing safety / integrity issues. Completion of ‘Kandhkot Integrated Reservoir Study’ conducted through a third party independent international consultant (RPS). Two compressors were relocated from Sui, refurbished and successfully commissioned, adding 44 MMscfd in gas handling capacity of KFGCS. Upgradation of ESD system of Dehydration Plant completed and commissioned.
6.8 ADHI Oil field:
Adhi field achieved highest-ever daily production of gas: 80 MMscfd, oil: 10,938 bpd and LPG: 324 MT /day. Three development wells, Adhi-28(T/K), 29(T/K) and 30 (T/K) were completed and commissioned, adding 8.8 MMscfd of gas and 1,520 bpd of oil. Exploratory well, Adhi South X-1 was successfully completed, resulting in a discovery with estimated additional reserves (2P) of 49 bcf gas and 10.6 MMbbl oil (BOE -19.20 MMbbl). Maximum oil flow rate recorded was 1,550 bpd along with 2.62 MMscfd Gas at 1,000 psi FWHP. Two Development wells, Adhi-31(T/K) & Adhi-32(T/K), were spud-in. Target depth of well Adhi-31(T/K) achieved in record time of 55 days as compared to planned 190 days. Workover of well Adhi-24 (T/K) completed. Annual Turn Around (ATA) of three plants completed in record time of 9 days. Well Adhi-9K revived by Gas injection through annulus, resulting in production increase of about 0.2 MMscfd Gas and 100 BOPD. Successfully completed Factory Acceptance Test (FAT) of Adhi compressors and packages shipped from China.
6.9 GAMBAT SOUTH, HALA AND MAZARANI Gas fields:
Gambat South Gas Processing Facility (GPF) – III project is still in procurement and construction phase. Efforts are underway to mitigate effects of delay in Project completion. Construction activities are in full swing at Gambat South GPF-IV. All equipment installed, and piping, electrical and instrumentation work in progress. Pre-commissioning activities also commenced and mechanical completion of plant along with Phase-I (of 10 MMscfd Gas) commissioning is expected by mid-September 2018. Construction work on Zafir X-1 and Wafiq X-1 feeder lines completed.
Ministry of Energy (Petroleum Division) Year Book 2017-18 48 Kabir X-1 EWT oil separation facility in Gambat South, changeover of EWT contractor completed, resulting in Opex reduction by 35% ($0.59MM/year). Development and Production Lease of Zafir (Gambat South) and Fazl (Hala) discoveries granted by DGPC. Grid Interconnection Study related to development and approval of 20 MW Hatim Power Project by CPPA-G completed.
6.10 PARTNER OPERATED AREAS TAL Block (operated by MOL Pakistan):
Exploratory well Makori Deep-1, a recent discovery, was successfully commissioned. The well flowed 7 MMscfd gas with 800 bpd of oil. Development well Maramzai-4 was commissioned at 15 MMscfd of gas with 500 bpd of condensate and 11 MT / day LPG. Development well Makori East-6 completed and commissioned as Gas / Condensate producer with 2.5 MMscfd gas and 950 bpd condensate. Exploratory well Tolanj X-1 commissioned with 9.5 MMscfd gas and 60 bpd condensate. Exploratory well Tolanj West-1 commissioned with 11.5 MMscfd gas and 60 bpd condensate. Makori East -2 intervention jobs, resulted in incremental 3 MMscfd gas and 1,000 bpd oil / condensate.
6.11 KIRTHAR Block (operated by POGC Pakistan):
Development well Rizq-2 commissioned with flow-rate of 4.6 MMscfd. Development well Rehman-4 successfully completed and tested as gas producer with flow of 11 MMscfd.
6.12 QADIRPUR Gas field (operated by OGDCL):
Development wells, Qadirpur-58, HRL-14, HRL-13, Qadirpur-25 (Side Track) successfully drilled, completed and commissioned, with total incremental production of 17 MMscfd achieved. Development well Qadirpur-59 spud in and drilling in progress.
6.13 SAWAN Gas field (operated by OMV Pakistan): Rig-less workover / wellbore cleanout carried out at Sawan-3, resulting in incremental production of 7.5 MMscfd gas.
6.14 NASHPA Oil field (operated by OGDCL):
Mela-5 tested and completed as gas producer and discovery declared in Samana Suk Formation subsequent to the year end. Mela-5 stimulation job, resulting in 4 MMscfd gas and 800 bpd incremental oil from Datta Formation. Nashpa-8 tested and completed as gas producer and commissioned at 10 MMscfd and 1,000 bpd oil. Development wells Mela-1 and Mela-3 are under P&A after unsuccessful workover.
Ministry of Energy (Petroleum Division) Year Book 2017-18 49 Drilling of wells Nashpa-9 and Mela-6 in progress.
6.15 Latif Gas Field (operated by OMV Pakistan)
Latif-15 spud on 24th April 2018 and successfully completed as gas producer.
6.16 BOLAN MINING ENTERPRISES
Mining, grinding and production of Barite operations at Khuzdar remained satisfactory. Highest-ever sales of 206,921 tons of barite ore and powder were recorded in 2017-18, breaking previous record of 135,690 tons in 2014-15. Sales of barite ore and powder was 110,274 tons in 2016-17. BME started export of Barite powder for first time during the year 2017-18
The details of projects are as under: PROJECTS The following key projects were executed in the Company’s operated areas:
The following key projects were executed in the Company’s Partner operated areas:
Ministry of Energy (Petroleum Division) Year Book 2017-18 50 The following key projects were executed in partner-operated areas:
6.17 EXPLORATION
PPL, together with its subsidiaries, has a portfolio of 43 exploration blocks, of which 25, including Block-8 in Iraq, are PPL-operated and 18 are partner-operated including three off-shore blocks in Pakistan and one onshore block in Yemen.
The Company strategically holds a diversified exploration portfolio with a mix of High-Risk, High-Reward and Low-Risk, Low / Medium-Reward assets. Furthermore, as evident historically, PPL’s business cycle, with production starting within few years of exploration investment, will position the Company on the frontline in reaping benefits from an ongoing rebound in oil prices. The Company’s seismic operations and exploration drilling increased several-fold after addition of blocks acquired during the 2009 and 2013 bidding rounds. During the last seven years, PPL acquired 9,827 L. Km 2D seismic data and 8,740 Sq. Km 3D seismic data, including 318 Sq Km 3D seismic in Block-8, Iraq. During the same period, PPL has drilled 53 exploration wells.
Block wise details of exploratory work program delivered during the year in the company’s operated blocks is provided as follows:
Ministry of Energy (Petroleum Division) Year Book 2017-18 51 EXPLORATION BLOCKS Company Operated
Company Operated North blocks:
Ministry of Energy (Petroleum Division) Year Book 2017-18 52 Company Operated South blocks:
Ministry of Energy (Petroleum Division) Year Book 2017-18 53 6.18. RESERVES MANAGEMENT:
Movement in the Company’s net proven (1P) hydrocarbon reserves as of 30th June 2018
Based on upward reserves revisions, additions and production for the year, the Company’s Reserves Replenishment Ratio (RRR) stands at 89 percent, indicating that 89% of the total production for the year has been replaced with additional reserves. The upward revisions have come primarily due to reservoir studies of Sui, Adhi and Nashpa fields while new reserves were confirmed in Zafir and Kandhkot SUL West dome.
Ministry of Energy (Petroleum Division) Year Book 2017-18 54 6.19. FINANCIAL OVERVIEW:
6.20. SALES REVENUE:
Sales revenue increased by Rs 9,223 million during the current year as compared to the corresponding year. The increase is due to positive variance on account of price (including exchange rate) amounting to Rs 11,968 million, partially offset by negative volume variance of Rs 2,745 million.
Positive price variance is due to revision in wellhead gas price of Tal (as disclosed in note 26.1.9 to the unconsolidated financial statements for the year ended June 30, 2018), coupled with increase in average international crude oil prices from US$ 47.67 / bbl in the corresponding year to US$ 61.50 / bbl during the current year.
Ministry of Energy (Petroleum Division) Year Book 2017-18 55 A comparison of the Company’s share of sales volume from all PPL and partner-operated fields is given below:
6.21. QUALITY, HEALTH, SAFETY AND ENVIRONMENT (QHSE)
6.21.1 OCCUPATIONAL HEALTH AND PROCESS SAFETY
QHSE matters are of prime importance in PPL’s business planning, strategic decision making and target setting. Accordingly, all levels of management are engaged in execution of QHSE activities at par with operational activities.
6.21.2 KEY PERFORMANCE INDICATORS
The monitoring mechanism of QHSE performance has improved through automation of QHSE processes. Incident Reporting and Risk Management modules are functional, with introduction of a user-friendly software that is capable of tracking actions and generating HSE statistics dashboard on live basis. Several hands-on training sessions were conducted to catalyze transition from manual processes to use of this software.
Ministry of Energy (Petroleum Division) Year Book 2017-18 56 Unprecedented rise in total man-hours is evident in the graph owing to increased operational activities. Accordingly, quantum of QHSE activities has also enhanced manifold. It is encouraging to note that 25 Million Safe Man hours were celebrated at Sui, 5 million at Kandhkot and 1 million at Mazarani fields, respectively.
Total Recordable Injury Rate (TRIR) and Lost Time Injury (LTI) Frequency for the company as well as contractors for the past three years are given below:
Ministry of Energy (Petroleum Division) Year Book 2017-18 57 All high potential incidents were investigated in depth with involvement of Company’s senior management and remedial measures taken immediately to prevent recurrence.
Hazards and Near Miss Reporting
Corporate drive to enhance near miss reporting on year-on-year basis continues with the objective to address systemic deficiencies at initial stage before such incidents potentially convert into major accidents.
Road Transport Safety
Gap assessments were initiated at selected fields in line with comprehensive guidelines on Road Transport Safety Management System (RTMS) promulgated across the Company earlier. Defensive driving training and refreshers continued across the Company. Awareness campaigns were undertaken and a Driving Safety Handbook launched at PPL drilling locations.
A high-level assessment was conducted in coordination with relevant assets to establish current PPL baseline (nature, scope and overall risk documented) in respect of Hydrocarbon Transport on Road. QHSE technical input (laws and standards) incorporated in the ongoing service procurement process for “Crude Oil transportation by road from Adhi Field to ARL Refinery” on behalf of DG Oil.
6.22 CUSTOMER SATISFACTION AND QHSE CERTIFICATIONS
PPL operated fields and selected departments successfully sustained QHSE Management System international certifications: ISO 9001 (Quality), 14001 (Environment) and OHSAS 18001 (Occupational Health and Safety). This provides assurance on availability of QHSE foundations and in-built customer satisfaction processes. Japanese technique of 5S was launched at Adhi drilling sites with encouraging results in housekeeping standards.
Ministry of Energy (Petroleum Division) Year Book 2017-18 58 6.23 PROCESS SAFETY (PS)
Process Safety Management (PSM) implementation journey, based on recommendations made by M/s DuPont Sustainable Solutions in PSM Evaluation Study last year, is in progress across three core dimensions:
‘Leadership and Culture’, ‘Competence’ and ‘Information and Hazard Analysis’.
a. Process Safety (PS) Leadership and Culture
Leadership Workshops
High-level Leadership workshops were conducted for senior management at head office and fields, enabling them to set a strong QHSE culture at PPL. The effectiveness of the effort is visible in the improved quality of management audits and active participation of staff in PSM activities.
Management Audits
PPL Senior Management regularly conducts site audits in order to demonstrate safety leadership. Stretched target was achieved during the year, demonstrating management commitment to cultural improvement. In the spirit of continuous improvement, this programme is being remodeled on risk based concept. The Company also intends to introduce theme-based audits for focused intervention at respective fields / sites. Auditors will be given orientation to engage shop floor staff on variety of topics such as road safety, permit to work and personal protectives. This is expected to bring improvement in removing hidden obstacles through team work.
Behavioral Observation Program
As one of the key deliverables of the PSM journey, PPL launched a ‘Behavioral Observation Programme’ at Adhi Field on pilot basis. A hybrid approach was adopted, utilizing internal resources to the maximum and engaging external local resource where absolutely necessary.
The overall aim is to equip front line supervisors with tools and techniques on how to observe behaviors at workplace, the art of engaging work force through meaningful dialogue and inculcating safety culture by ‘walking the talk’. Classroom sessions as well as role plays and coaching methodology were utilized to elevate the programme. It is anticipated that a positive impact of GEC program at Adhi Field will soon be reflected in reducing workplace hazards and potential incidents. This program is planned for extension to other fields in FY 2018-19.
b. Process Safety Competence
As a result of close coordination among internal stakeholders, a detailed PSM competence framework and skill matrix had been developed. This concerted effort helped in identifying focus areas for target staff in delivering trainings and building organizational capability. QHSE annual training calendar was developed and approved after management scrutiny. Accordingly, multiple sessions were conducted on QHSE Automation Software (Incident and Risk Modules), Process Hazard Analysis (HAZOP and HAZID) and Emergency Response.
Ministry of Energy (Petroleum Division) Year Book 2017-18 59 Further, process Safety Competence gap assessment was completed at the Head Office and selected fields to form current baseline as per phased plan. Also, a number of events were observed – PSM Week and World Safety Day – at fields and offices to create awareness on fundamentals of process safety. Stakeholders from different fields and departments shared their PSM knowledge through short presentations and discussions. This is a milestone engagement of staff for gaining momentum on Process Safety initiatives. Webinar methodology was also adopted to engage a wider audience in a limited time period.
c. Process Safety Information (PSI) and Hazard Analysis
Risk Module in QHSE automation software comprises of sub-elements such as HAZOP (Hazard and Operability Study), HAZID (Hazard Identification), JSA (Job Safety Analysis) and External Risk (third party assessments). These risk analysis techniques are applied in PPL at various stages of projects and operations. HAZOP study was applied mainly during the design of new projects or modifications at plant, whereas, HAZID was conducted for all field locations as baseline Hazard Identification tool. Most of these studies / workshops were chaired by third party consultants and a few were managed by in-house experts.
Given below is a breakup of HAZID / HAZOP workshops based on data available in QHSE automation software for August 2017 – July 2018:
Ministry of Energy (Petroleum Division) Year Book 2017-18 60 On the monitoring and inspection front, implementation of phased plan continues in respect of Risk-based Inspection (RBI) studies, Non-intrusive inspection (NII) of critical vessels at operating plants and third party inspections of plant piping. The key prominent activity remained RBI study of Sui Field which concluded in the reporting period through extensive engagement of field and head office staff as well as external consultant.
6.24 ENVIRONMENTAL FOOTPRINT
a. Legal Compliance
To comply with legal / statutory requirements, Initial Environmental Examination (IEE) studies were arranged and NOCs acquired for more than 20 projects within set timeline for smooth progress on Company’s strategic work plans.
Independent Monitoring Consultants (IMCs) were deployed in seismic, drilling and construction activities for effective monitoring and reporting of compliance against agreed project specific Environment Management plans.
6.25 CONTRACTOR SAFETY
Contractor’s Safety is a high-risk area in the oil and gas industry which is recognized as a corporate risk at PPL as well. Since the inception of the Company’s aggressive growth plans, there has been an unprecedented increase in contractor activities and associated safety risks.
Accordingly, the following key measures were undertaken in general for seismic, drilling and projects contractors:
Pre Mobilisation Workshops Pre Spud Inspections Independent Monitoring Contractors Trainings Regular meetings with Contractor Management at head office for outstanding QHSE issues Behavioral Intervention and Modification Program at drilling rigs Safety Membership and Safety Captain Programs HSE Experience sharing with JV partners Publication of Basic First Aid guide
Apart from the above, it is important to mention that PPL maintains combined / inclusive statistics for its own employees as well as contractors. This reflects the management’s positive approach in safety ownership at the same level for both PPL-operated as well as contractor- operated work sites.
Seismic Safety
A variety of challenges were faced and managed during the reporting period. These included working in mountains / hilly terrain, safe handling of explosives, security issues in frontier areas and massive transportation. All risks were controlled through engineering controls and safe work practices, resulting, for instance, in more than 2 Million Safe Kilometers driven without accident. Restoration of work sites was also observed to comply legal requirements.
Ministry of Energy (Petroleum Division) Year Book 2017-18 61 Drilling Safety
There are several QHSE initiatives specific to drilling activities which are below:
6.26 ENERGY CONSERVATION
The Company observed Earth Hour (EH) 2018 to reiterate its support for energy conservation. EH was strictly observed by switching off all non-essential lights and electronic devices at the head and regional offices as well as field locations during the designated hour. As a key national energy provider, PPL stands committed to energy conservation to bridge the widening gap between demand and supply to ensure future energy security for the Country.
6.27 CORPORATE SOCIAL RESPONSIBILITY: 6.27.1 CORPORATE PHILANTHROPHY
PPL’s Corporate Social Responsibility (CSR) programme dates to the start of its commercial operations in Sui in the 1950s, when the Company established a school for children of workers and local communities. Since then, CSR has been the centerpiece of Company’s corporate ethos. The CSR programme includes focus areas such as education, health, infrastructure development, women development and sports for socio-economic uplift of underprivileged communities. The Company works with relevant stakeholders with a dedicated 1.5 percent of its annual pre-tax profit for CSR initiatives, though our actual spending doubles this threshold.
As a responsible corporate entity, PPL remains committed to serving the nation and bringing a positive change in the lives of deserving communities residing in and around its operational areas as well as other parts of the country. As such, the Company engages with relevant stakeholders, including area notables and civil society organizations, to plan and implement projects for meaningful impact in line with local needs, ensuring transparency, reach and sustainability through rigorous on-ground monitoring and evaluation.
Ministry of Energy (Petroleum Division) Year Book 2017-18 62 To promote social welfare under CSR at the Company’s producing areas and urban centers, PPL spent Rs 1,171 million on various social welfare initiatives of mass benefit directly as well as through credible development organizations during 2017-2018.
6.27.2 EMPLOYMENT OPPORTUNITIES FOR LOCAL COMMUNITIES
During the year under review, the company initiated as well as continued support to several projects around its operational and urban areas. These include scholarship schemes for local students, support to educational facilities catering to children with special needs, provision of free-of-cost healthcare services through mobile medical dispensaries and ophthalmic camps, development, operationalization and upgradation of educational, healthcare and skill development institutions, initiation of potable water supply schemes, roads and other infrastructure projects.
6.27.3 EDUCATION
PPL believes that investing in education can empower communities. PPL has set up several schools, academic blocks, provided on-ground facilities at schools besides supporting initiatives for specially-abled children. Three PPL-TCF primary schools and one secondary school are running in Kandhkot benefitting almost 600 students.
In addition, the Company ensures underprivileged students access to prestigious institutions of higher education. The PPL-NUST Outreach Programme trained 320 students from FATA and Balochistan to appear in the NUST entry test. Besides, the Company has an extensive scholarship programme awarded to over 300 students around operational areas in Balochistan, districts Kashmore, Sanghar, Qamber-Shahdadkot and Tehsil Gujjar Khan. Two students each from Khyber Pakhtunkhwa and Balochistan were funded to finish their graduation at IBA, Karachi under the National Talent Hunt Programme.
PPL Chairs in Petroleum Engineering have been operational at NED University Karachi and Mehran UET Jamshoro to strengthen research and development in the field of petroleum engineering and train human resource for the industry.
The Company provided scholarships, transport and stationary to students besides constructing rooms and ancillary facilities in schools and colleges in its concession areas.
6.27.4 HEALTHCARE
PPL has continued its efforts to take healthcare to the doorstep of host communities. More than 120,000 patients were provided free-of-cost consultation, treatment and medicine through Sui Field Hospital and PPL Public Welfare Hospital. Other key healthcare initiatives of the company, including mobile dispensaries at Sui, Mazarani, Kandhkot Gas Field and PPL Public Dispensary, Mastala, in District Rawalpindi, have benefitted more than 100,000 patients.
A total of 11 surgical and physical eye camps in areas surrounding production fields of Sui, Kandhkot, Adhi, Qamber-Shahdadkot and Sanghar were regularly organised. At OPD, free-of- cost consultation, treatment and medicine and 1,275 surgeries were carried out for cataract removal and over 8,400 patients were provided spectacles for near and distant vision.
Ministry of Energy (Petroleum Division) Year Book 2017-18 63 PPL continued its support to philanthropic urban hospitals, including Thalassemia Hospital at Badin, Indus Hospital, Punjab, Murshid Hospital, Bait-ul-Sukoon Cancer Hospital and Hospice, Lady Dufferin Hospital, Karachi and SIUT for Karachi and Dr. Ruth Pfau’s Marie Adelaide Leprosy Center (MALC) at Kandhkot in Sindh and Turbat in Balochistan.
6.27.5 LIVELIHOOD GENERATION AND RURAL DEVELOPMENT
PPL is supporting 47 students from concession areas to pursue a one-year City and Guilds technical diploma at the Hunar Foundation. In addition, Women Vocational Training Centre at Mastala near Adhi Field as well as Vocational Training Institute and Computer Training Centre and Public Library at Sui Town enable over 850 students to earn their livelihood. The Company also awarded scholarships to 30 disabled students of District Sanghar and Matiari to pursue primary and secondary level education at the Deaf Reach School at Rashidabad being operated by Family Education Services, Pakistan.
6.27.6 FREE GAS AND WATER SUPPLY
PPL provided free gas and water to Sui Town, besides providing water in the schools and residential areas of districts Kharan, Lasbela and Awaran in Balochistan. Also, potable water for residents of Ghaibi Dero village, District Qambar, Shahdadkot is provided.
6.27.7 PUBLIC WELFARE AND ENVIRONMENTAL UPGRADATION
PPL Installed Solar Energy System at DHQ Hospital at Kalat, District Kalat and is electrifying 500 households with solar energy in PPL held-interest areas in Balochistan.
6.27.8 INFRASTRUCTURE DEVELOPMENT
PPL’s contribution in infrastructure development comprises construction of roads and bridges in District Kashmore, Sanghar, Lasbela and village Mastala, benefitting communities in terms of comfort and saving time on travel. The Company constructed 2.8-kilometer-long jeepable road at Lohi, District Lasbela, Balochistan and a 5 km road from village Mastala to village Naban Saeeda, District Rawalpindi.
6.27.9 SPORTS AND CULTURAL ACTIVITIES
Three consecutive seasons of the PPL Balochistan Football Cup 2016, 2017 and 2018 provided a platform for youth from the grassroots level in Balochistan to nurture their talent to form Pakistan Petroleum Limited Football Club (PPL-FC), which received a bronze medal at Pakistan Football Federation’s National Challenge Cup (PFF NCC) held in 2018. Five players from PPL- FC have been taken on Pakistan’s national football team.
Other notable projects include support to Karachi Literature Festival 2018 organized by Oxford University Press and the Fifth Prime Minister T20 Blind Cricket Championship Trophy 2017 for the specially-abled cricket players.
Ministry of Energy (Petroleum Division) Year Book 2017-18 64 STATEMENT OF CSR SPENDING
Ministry of Energy (Petroleum Division) Year Book 2017-18 65 CHAPTER 7
Government Holdings (Private) Limited
Ministry of Energy (Petroleum Division) Year Book 2017-18 66 7.1 INTRODUCTION
Government Holdings (Private) Limited (GHPL) manages Government of Pakistan’s working interest in upstream petroleum Joint Ventures. GHPL participates in all Joint Ventures as non- operator. The company monitors the activities of the Joint Ventures on behalf of the Government of Pakistan.
GHPL is non-operating partner with local and foreign oil and gas exploration and production companies. Major operating companies in partnership with GHPL are UEPL, OPII, OMV, Hycarbex, OMEL, MOL, OGDCL, MPCL, PPL, POL and PEL.
GHPL has been assigned GOP’s working interest in 90 joint ventures. Current portfolio consists of:
a. 18 onshore concessions in exploration stage under Petroleum Concession Agreement (PCA), b. 08 concessions in offshore area under Production Sharing Agreement (PSA), c. 76 Development and Production Leases (D&PLs), and d. 03 Farm-in onshore exploration licenses with 25% interest on full participation basis with PPL. e. 26 onshore exploration licenses with OGDCL, PPL, OMV, Al-Haj, KUFPEC and Tallahassee (Petroleum Policy 2012) ranging from 2.5% to 5% on full sharing basis f. 06 New Farm-in onshore exploration licenses with 15-20 % W.I on full sharing basis under 2001, 2009 & 2012 Petroleum Policy with OGDCL (Assignment Agreement in progress)
7.2 MAJOR EXPLORATION ACTIVITES Seismic Acquisition Activity (during 2016-17):
Seismic Block Operator 2D L.km 3D Sq.km Zorgarh OGDCL 513 Kulachi OGDCL 554 Pezu OGDCL 218 Pasni West OGDCL 245 Khanpur OGDCL 234 Dhok Sultan PPL 248 350 Malir PPL 20 Paharpur KUFPEC 1031 Mehar OMV 146 Ranipur OGDCL 184 Gambat South PPL 526 Sirani PPL 496
Ministry of Energy (Petroleum Division) Year Book 2017-18 67 Shah Bandar PPL 15 Zamzama OPII 28 TOTAL 2,975 1,833
7.3 E&P ACTIVITES IN OFFSHORE BLOCKS GHPL being licensee in offshore is managing the following 08 Production Sharing Agreements (PSA) by 04 different Operators:
Offshore Indus N, G & Eastern Offshore Indus C Eni Pakistan Limited (03) Offshore Indus U & S UEPL (02) Offshore Indus R & Eastern Offshore Indus A OGDCL (02) Offshore Indus J PEL (01)
7.4 DRILLING ACTIVITIES
Following drilling activities were carried out in different blocks in which GHPL is Joint Venture Partner.
Wells Status 2015-16 2016-17 Exploration & 25 25 Appraisal Wells Development Wells 07 12 Discoveries 11 10
7.5 DISCOVERIES 2016-17
A total of 10 discoveries were made during the year 2016-17:
i. Rawat-1, Makrani-1 & Mohib-1 discoveries were made in MIRPURKHAS Block by UEPL. ii. Dang-1 discovery was made in KHIPRO Block by UEPL. iii. Gudanwari-1 discovery was made by OGDCL in BITRISM Block. iv. Mithri-1 & Chabaro-1 discoveries were made by OGDCL in KHEWARI Block. v. Khamiso-1 discovery was made by OGDCL in GUDDU Block. vi. Chutto-1 discovery was made by OGDCL in NIM Block. vii. Zafir-1 discovery was made by PPL in Gambat South Block.
7.6 PRODUCTION STATUS
Ministry of Energy (Petroleum Division) Year Book 2017-18 68 GHPL’s share of average daily production from all fields during FY 2016-17 is as follows:
2015-2016 2016-2017 Oil/condensate (BPD) 8,706 9,001
Gas ( MMSCFD) 240 253 LPG (MT/D) 113 125
7.7 MAJOR PRODUCTION & DEVELOPMENT ACTIVITIES
7.7.1 SAWAN – Operated by OMV (GHPL working interest 22.5%)
Gas production from Sawan continued in the year 2016-17 through front-end compression with a natural declining trend. The average gas production from the field during June 2017 was 56 MMSCFD (Million Standard Cubic Feet Per Day). Several well intervention activities including additional perforations/scale cleanout jobs were carried out to maintain/enhance production. FEC Revamp project has been finalized which would result in additional recovery of gas and extension of field life up to 2019. Planned completion is October 2017. Moreover, Sawan JV agreed and commenced to process Latif JV gas resulting in efficient utilization of processing facilities and extension of field life for both fields.
7.7.2 GAMBAT / TAJJAL – Operated by OMV (GHPL working interest 25%)
Gas production from the Tajjal field in Gambat Exploration License area continued in the year 2016-17 at 2.40 MMSCFD during June 2017. The field is on natural decline & producing through Sawan Font End Compression. Only Tajjal-1 well is on production. Scale clean-out jobs are carried out at Tajjal-1 to ensure production continuity. Operator has relinquished Gambat exploration license.
7.7.3 ZAMZAMA – Operated by OPPL (GHPL working interest 25%)
Zamzama field produces gas and condensate. The Operatorship has changed from BHPP to OPII w.e.f January 2016. The field was put on front-end compression in August 2011 to arrest the production decline in Zamzama field. The average production from the field during June 2017 was 86 MMSCFD Gas and 410 BCPD (Barrels of condensate per day). The field is on natural decline. Several well intervention activities including additional perforations were carried out to maintain/enhance production. 3D seismic acquisition was carried out to confirm the structure size/further potential. Moreover, workovers were carried out to exploit the potential of Khadro formation in Zam-5 & Zam-1.
7.7.4 CHANDA – Operated by OGDCL (GHPL working interest 17.5%)
Ministry of Energy (Petroleum Division) Year Book 2017-18 69 Average production from the field during June 2017 was 3.25 MMSCFD; 1,395 BOPD (Barrels of Oil per day) and 09 MT/D of LPG (Metric Ton per Day) from 03 wells. Membrane unit was installed to control CO2 within approved limits. Chanda-4 development well is under drilling and expected to come on production by Oct. 2017. Chanda-5 well is also planned to enhance/maintain production.
7.7.5 TAL EXPLORATION LICENSE – Operated by MOL (GHPL working interest 15%)
Project work on Makori Gas Processing & LPG Plant was successfully completed by February 2014 and LPG production also started in March 2014. Total average production from the Tal Block (Manzalai, Makori, Mamikhel, Maramzai,Makori East & Mardankhel) during June 2017 was 313 MMSCFD Gas, 23,406 BOPD Oil & condensate & 500 MT/D LPG. Plant and process optimization activities were carried out to enhance the production of LPG. Development & exploration drilling continued during the year. Projects updates include; i) work on Central Front End Compression remained in progress, 2) work was completed on water disposal facilities, 3) work is underway to develop Tolanj & Tolanj West discoveries by relocation of Makori EPF as Tolanj Processing facilities. Several well interventions and reservoir monitoring activities were carried out during the year.
a. Manzalai: Average production from the field during June 2017 was 35 MMSCFD, 475 BCPD & 4 MT/D LPG from 06 wells. Compression remained operational to support the field’s declining pressures & production rates.
b. Makori: Average production from the field during June 2017 was 1.81 MMSCFD, 118 BOPD and 4.3 MTD of LPG.
c. Mamikhel is the third discovery and is on production under since June 27, 2011. DOC & FDP have been approved. Average production during June 2017 is 22 MMSCFD, 652 BCPD & 4.90 MT/D LPG from two wells. Wellhead compression is being installed by relocating one of the Manzalai compressors. d. Maramzai is the fourth discovery made in August 2009, producing since January 2011. DOC & FDP have been approved. Average production during June 2017 is 127 MMSCFD, 4,332 BCPD and 118 MTD of LPG from the three wells. Maramzai-4 development well drilling has been completed and well flow line laying and tie-in is in progress. e. Makori East is the fifth discovery in the block and is producing since June 2012. Average production during is 85 MMSCFD, 14,445 BOPD and 353 MTD of LPG from five wells. Makori East-5 development well drilling was completed and well tied-in and put on production. Drilling of Makori East-6 is in progress. f. Mardankhel discovery is the sixth discovery in the block. Discovery was made during 2014-15. Mardankhel-1 well was put on production under EWT after completion of flow line and tie-ins with processing facilities. Drilling of two appraisal wells continued during the year. Delays in work encountered due to local’s issues, tough & difficult terrain and security access issues in Mardankhel area..
Ministry of Energy (Petroleum Division) Year Book 2017-18 70 7.7.6 HASEEB (YASIN E.L) – Operated by Hycarbex (GHPL working interest 25 %)
Haseeb-1 was discovered on May 25th 2005. Sui Main Limestone is the main producing reservoir. Gas production from the field started in April 2011 under EWT. The production declined from 10 mmscfd to zero due to extensive water breakthrough. The current field production is Nil as the well has watered out. Several well intervention activities were carried out to revive the production. Further appraisal well and seismic acquisition are being planned to put the field back on production.
7.7.7 MAZARANI – Operated by PPL (GHPL working interest 12.5%)
Production from the field started in June, 2003. Average production from the field during June 2017 was 5.45 MMSCFD and around 13 BCPD. Mazarani-5 well was drilled and put on production. Mazarani Deep Exploration well was also drilled and was P&A.
7.7.8 PARIWALI – Operated by POL (GHPL working interest 17.5%)
Average production from the field during June 2017 was 3.85 MMSCFD, 340 BOPD and 11.5 MT/D of LPG. This field is on natural decline. Reservoir simulation study was carried out and joint venture partners are exploring different strategies to exploit available potential.
7.7.9 BADIN-III & MEHRAN – Operated by UEPL (GHPL working interest 25%)
These small fields have depleted. Junathi South has already been fully depleted. 3D seismic was carried out in Mehran Block to evaluate further potential. Average production from the field during June 2017 was nil. Further drilling is being planned to exploit the remaining potential.
7.7.10 MIRPUR KHAS & KHIPRO – Operated by UEPL (GHPL working interest 25%)
Current exploration & drilling campaign in these blocks resulted in 04 minor discoveries, which are under evaluation for development. Moreover, development wells were also drilled. Total average production from these two blocks during June 2017 was 450 MMSCFD of Gas, 3,300 BPD of Condensate and 50 MT/D of LPG.
Major projects in progress are up-gradation of Naimat LPG Plant, Naimat Flare Upgrade, Naimat Sales Gas Compression, Naimat H2S Solid Scavenger and Naimat Phase-5A3. Projects completed during the year are Rajani-Kauser Flow Line project and Wellhead control systems. Ministry of Energy (Petroleum Division) Year Book 2017-18 71 Due to non-acceptance of condensate by the refineries, condensate is being exported regularly. Several efforts were carried out, for example, artificial lift, fracs, compression projects etc of which some are implemented as per requirement to ensure production continuity and enhance recovery.
7.7.11 BLOCK-22 – Operated by PEL (GHPL working interest 22.5%)
Average Gas production from Block-22 during June 2017 was about 11.30 MMSCFD. Water production has increased and a disposal well is planned to meet the required water disposal.
7.7.12 REHMAT & SAQIB – Operated by OMEL (GHPL working interest 25%)
Production declined rapidly from Rehmat field. Currently there is no production from Rehmat field due to high water production and became non-commercial. Saqib-1A production reached the Plant Turn-down capacity (4 mmscfd approx.) and was shut-in & Rehmat Gas plant was mothballed. However, Saqib-1A DOC & FDP approval is still awaited. Rehmat D & PL was relinquished and Rehmat gas plant was handed over to GoP for further disposal as per rules. Rehmat Wells are plugged and abandoned.
Some exploration prospects are under evaluation in Mubarak EL.
7.7.13 MEHAR – Operated by OMEL (GHPL working interest 25%)
Field development plan was approved in May 2008. M/s OMEL took over the operatorship from Petronas in December 2010. Project work on Gas Processing plant was completed in November 2013. Average production from the field during June 2017 was about 11 MMSCFD and 625 BOPD from three wells. Several well intervention and work over of Mehar-2 was carried out to ensure production continuity. Mehar-3 Wellhead Compression was commissioned. Mehar-3 well Sidetrack is planned to tap the reservoirs horizontally.
DOC & FDP of Sofia discovery were submitted and approved by GOP. Workover to run the completion has been carried out. Currently flow line construction, laying and installation is in progress to tie-in with Mehar Processing Facilities. Seismic was conducted in Mehar EL and after processing & interpretation, drillable prospects are being evaluated.
7.7.14 MINWAL – Operated by POL (GHPL working interest 17.5%)
Average production from Minwal during June 2017 was 99 bopd. This field is being produced using artificial lift. Due to scaling issues & downhole problems, a work over was conducted during the year to enhance/stabilize production from the field. During work over, additional perforations were added to enhance production.
7.7.15 CHACHAR – Operated by PPL Ministry of Energy (Petroleum Division) Year Book 2017-18 72 (GHPL working interest 25%)
Production from the field started in August 2007. Production from the field declined rapidly and reached at minimum plant turndown capacity. Average production from the field during June 2017 was 2.8 MMSCFD through Kandhkot processing facilities.
7.7.16 MELA D & PL - Operated by OGDCL (GHPL working interest 15%)
Mela-4 development well was completed and put on production in Dec 2015. Average production from the field during June 2017 was about 07 MMSCFD and 1,400 BOPD. Up- gradation of Mela processing facilities and Wellhead compression are planned. Mela-5 Development well is under drilling. Workover on Mela-1 is planned to revive production. Also, Mela-6 development well has also been approved and is expected to be drilled in next financial year.
7.7.17 NASHPA D & PL - Operated by OGDCL (GHPL working interest 15%)
Nashpa field was discovered through Nashpa-1 well on 13th October 2009. The well was put on production under EWT in May 2010. DOC & FDP have been approved. Average production from the field during June 2017 was about 95 MMSCFD and 23,000 BOPD. Nashpa-6 & Nashpa-7 development wells were completed and put on production. Nashpa-5 exploration well is under EWT production. Work on Nashpa EPCC project to install dedicated processing facilities to process gas, oil & LPG (started in January 2016) remained in progress and is expected to be commissioned during 4Q 2017.
7.7.18 NIM E.L – Operated by OGDCL (GHPL working interest 22.5 %)
The average production from Nim E.L during 2016-17 was around 1.5 MMSCFD & 155 BOPD. An Oil discovery, Jarwar-1 well remained producing through artificial lift (Jet pump) under EWT. Chutto-1 discovery was made in this block. Options to put Chutto-1 discovery and Saand wells on production are under review.
7.7.19 SINJHORO E.L – Operated by OGDCL (GHPL working interest 22.5 %)
Dehydration and LPG Recovery plant have been installed at Sinjhoro Gas Field. Partial production in Phase-I (without the Amine Gas treatment) started on January 4, 2013 at 10 MMSCFD and 800 BCPD.
In Phase-II of the project, construction work is completed for installation of the Gas Compressors, installation of gas gathering pipelines for the remaining wells and Membrane Unit for CO2 removal. LPG production started by 3Q, 2015 followed by increase in production by tie-
Ministry of Energy (Petroleum Division) Year Book 2017-18 73 in of additional wells. Average production from the field during June 2017 was about 41 MMSCFD Gas, 2,700 BOPD Oil/Condensate and 150 MT/D of LPG.
7.7.20 JAKHRO D&PL – Operated by OGDCL (GHPL working interest 22.5 %)
Jakhro field is being processed at Sinjhoro processing facilities. After installation of pipeline and allied facilities, production started from Jakhro Field in October 2013. LPG production started by 3Q, 2015. Jakhro is being processed at Sinjhoro Field. Separate metering & separation facilities have been installed for proper gas allocation. Average production from the field during June 2017 was about 1.21 MMSCFD , 26 BOPD and 4.30 MT/D of LPG from 01 well. Production volumes from Jakhro field are restricted to control high Nitrogen content in Sales gas commingled through Sinjhoro processing facilities.
7.7.20 GUDDU EL – Operated by OGDCL (GHPL working interest 22.5 %)
Gas from Guddu field is being supplied to M/s Engro. After installation of pipeline and allied facilities, production started from Guddu Field in January 2014. Average production from the field during June 2017 was about 11 MMSCFD from 06 wells. DOC was submitted for Maru East and Khamiso-1 was put on production under EWT. Further exploration wells are planned.
7.7.21 ZARGHUN SOUTH D&PL – Operated by MPCL (GHPL working interest 17.5 %)
Field development activities were completed and production started from Conventional & Tight gas wells in 4Q 2014. The facilities included Dehydration, Amine Gas treatment unit and allied facilities. Moreover, SSGCL has also actively completed the Sales gas line. GoP has approved Dunghan reservoir as a Tight Gas reserves.
Average production from the field during June 2017 was about 15.45 MMSCFD & 07 BOCD. Zarghun South-3 well was successfully drilled/completed and put on production. Security issues remain a threat, however, are being managed for smooth operations.
7.7.22 TANDO ALLAH YAR EL – Operated by OGDCL (GHPL working interest 22.5 %)
Field development activities were completed which including Gas gathering Network, Sales gas Line, Well Head Compression, Dehydration plant, Amine Gas treatment plant & LPG Plant. TAY gas is being processed at OGDCL’s KPD Plant. Production started from January 2017. Average production from the field during June 2017 was about 65 MMSCFD Gas, 2,000 BOPD Oil/Condensate and 115 MT/D of LPG. Further process and production optimization is in progress.
7.7.23 GAMBAT SOUTH EL – Operated by PPL (GHPL working interest 25 %)
EWT production started from Kinza Well in February 2015 after installation of processing facilities, flow line & sales gas Line. The development activities included installation of Ministry of Energy (Petroleum Division) Year Book 2017-18 74 Dehydration plant, Amine Gas treatment plant and allied facilities. Kinza was shut down and Shahdad Well remained on production under EWT. Total Field production during June 2017 was about 60 MMSCFD Gas, 756 BPD condensate and 13 MT/d of LPG
Production from Shahdad ( GPF-I) was about 9 MMSCFD & 90 BPD. GPF-II: Plant commissioned in August 2016 and production started from Sharaf-1 well through GPF-II. Average production during June 2017 was about 51 MMSCFD Gas, 666 BPD condensate and 13 MT/d of LPG.
Projects update includes GPF-III: Work started on EPCC-II project in April 2016. Expected completion is 1Q 2018 to process gas from Wafiq & Nasr.
EWT is planned on Kabir X-1 well. Development options are under review to exploit the reserves of Hatim discovery due to its low heating value gas. Zafir X-1 discovery has been made and development options are underway to produce from this discovery.
3D seismic acquisition was carried out in the block and further exploration activities are being undertaken. DOC & FDP have been approved as Shahdadpur West (Shahdad Discovery) and Shahdadpur (Wafiq, Sharaf & Nasr Discoveries).
7.7.24 JHAL MAGSI SOUTH D&PL – Operated by OGDCL (GHPL working interest 22.5 %)
Field development activities were in progress including Dehydration plant, Amine Gas treatment plant and allied facilities to start production from this field. Procurement of material has been completed. However, construction work has stopped, as M/s SSGCL did not start work on Sales gas line. Alternate field development options are under review.
7.7.25 DHOK SULTAN – Operated by PPL (GHPL working interest 25 %)
Dhok Sultan Discovery was made in 2016-17. Preparations for EWT were in progress. However, due to well downhole problems; rig work over was carried out but remained unsuccessful. Third party analysis and way forward is under investigation. Recently, 2D/3D seismic acquired and further exploration/development plans are being prepared.
7.8 INVESTMENTS, REVENUES, ROYALTY AND TAX
During 2016-17 GHPL invested Rs. 2.5 billion in the exploration activities and Rs. 14.1 Billion in the development of discovered oil and gas fields. Additionally Rs. 0.5 Billion were given as advance to Inter State Gas System Private Limited (ISGSL), Pakistan LNG Ltd (PLL) and Pakistan LNG Terminal Limited (PLTL).
Revenue of Rs 48.1 Billion was generated from sale proceeds of oil, gas and LPG. Out of the revenues Rs. 4.5 Billion were paid to GOP as royalty & Rs. 9.9 Billion as income tax. The amount of Rs. 20 Billion was paid as cash dividend and Rs. 20 Billion in the form of bonus shares were made to GOP during the financial year 2016-17.
Ministry of Energy (Petroleum Division) Year Book 2017-18 75 7.9 BOARD OF DIRECTORS ( as on 30th June 2017)
Sr. No Name of Directors Designation
1 Mr. Shahid Islam MD/CEO, Government Holdings (Private) Limited 2 Mr. Muneer Kamal Independent Director
3 Mr. Furqan Bahadur Additional Secretary (A & D), Ministry of Energy 4 Syed Ghazanfar Abbas Jilani Additional Finance Secretary (Budget/CF), Finance Division 5 Syed Tauqir Hussain Joint Secretary, Ministry of Energy
6 Mr. Shahid Yousaf DG (LGs) Ministry of Energy
Ministry of Energy (Petroleum Division) Year Book 2017-18 76 CHAPTER 8
SUI NORTHERN GAS PIPELINES LIMITED
Ministry of Energy (Petroleum Division) Year Book 2017-18 77 S. No. ITEM UNIT TARGET ACHIEVEMENT (2017-18) (2017-18) 1 LPG Production - - - 2 Gas consumers (Addition) Million 0.6 0.605 Supply of Gas to Villages/ Abadies 3 Nos - 802 (Addition) 4 Transmission Pipelines (Addition) Km 200 328.92 Distribution Pipelines (Addition) Main & 5 Km 9330 14977 Services 6 System Lossese % 9.04% 10.92% 7 CNG Stations (Addition) Nos - - 8 LPG Stations (Addition) - - -
Ministry of Energy (Petroleum Division) Year Book 2017-18 78 CHAPTER 9
SUI SOUTHERN GAS COMPANY LIMITED
Ministry of Energy (Petroleum Division) Year Book 2017-18 79 JUL 17 - JUNE 18 Present Targets 2016-17 Status as on for 30.06.2018 2018-19 Target Achivement
NUMBER OF GAS CONSUMERS Domestic 86,012 114,300 89,070 2,886,222 115,582 Commercial 318 384 311 22,695 2,205 Industrial 29 39 17 4,207 208 Total 86,359 114,723 89,398 2,913,124 117,995
NATURAL GAS TRANSMISSION / DISTRIBUTION NETWORK Transmission 337 676 57 4,030 208 Distribution 519 783 458 35,890 920 Services 239 416 231 10,318 359 Total 1,095 1,875 746 50,238 1,487
A) INVESTMENT IN GAS SECTOR (Rs. Million) Transmision Projects 312 13,867 2,660 25,963 5,602 Distribution 4,611 6,418 4,529 60,279 6,779 RLNG 15,141 1,427 1,608 35,371 330 LPG Air Mix Projects - 5,264 307 307 12,580 Others 1,151 2,650 1,392 29,953 2,332 Total 21,215 29,626 10,496 151,873 27,623
B) INVESTMENT IN NEW CONNECTIONS : INVESTMENT (Rs. Million) Domestic 288 382 298 4,512 387 Commercial 2 3 2 115 15 Industrial 6 8 3 407 40 Total 296 392 303 5,034 441
TOTAL INVESTMENT (A+B) 21,511 30,018 10,799 156,907 28,064
Note: Figures of FY 2017-18 are un-audited and subject to change
Ministry of Energy (Petroleum Division) Year Book 2017-18 80 CHAPTER 10
Inter State Gas Systems (Private) Limited
Ministry of Energy (Petroleum Division) Year Book 2017-18 81 10.1 Introduction ISGS is a public sector company set up by the Government of Pakistan and is mandated to act as a bulk importer of natural gas for re sale in bulk to national gas distribution companies, develop gas infrastructure projects, assess augmentation requirements of gas transmission networks and identify, analyze and assess opportunities for reliable sources to import natural gas. The world is maneuvering to a state where countries will have more cross-border pipelines, owing to changes to energy demand patterns and location of reserves. The geopolitical landscape of the world is being remade by the increasing demand for energy resources from rising powers like China. Over the next few years, there will be a proliferation of pipelines in Asia as the energy requirements of Asia are expected to increase two-and-a-half times. Pakistan is poised to be on a sustained growth trajectory upon the successful completion of the China Pakistan Economic Corridor which under the aegis of China’s landmark OBOR, One Belt One Road initiative will act as a hub of movement of goods and produce across continents. As the momentum of economic growth shifts towards Asia, Pakistan is ideally placed to take advantages of this shift and must position itself in reaping maximum rewards. The mandate and order of work embodied by ISGS, encompasses the energy security of Pakistan. An analysis of Country’s energy market based on historical data and studies outlines the fact that the work and ongoing projects of ISG are of great vitality to the existing energy portfolio of the country. ISGS Projects not only provide support in implementation of Pakistan energy policy but also attract FDI, allow Strategic partnership with world’s economic powers like Russia, China, Iran, & Turkmenistan as well as Enhance expertise in energy sector while engaging with world’s leading energy sector companies including Gazprom Russia, NIOC Iran, TurkmenGaz, Gail India, and CPP China. 10.2 GAS IMPORT AND INFRASTRUCTURE PROJECTS
Pakistan mainly depends upon oil and gas resources to fulfill energy requirements. Indigenous resources of oil and gas are not enough to quench energy thirst of a growing economy. ISGS, being part of solution to this crisis, works on the following projects to ensure supply of imported gas to fulfil energy needs of the country in long term;
10.3 TURKMENISTAN-AFGHANISTAN-PAKISTAN-INDIA (TAPI) GAS PIPELINE PROJECT
Known as the Peace Pipeline, the TAPI pipeline begins in Turkmenistan and traverse Afghanistan to reach Pakistan and India.
Ministry of Energy (Petroleum Division) Year Book 2017-18 82 The project aims to bring 3.2 Bcfd natural gas from the Gylkynish (formerly Yoloten) and adjacent gas fields in Turkmenistan to Afghanistan, Pakistan and India through pipeline covering the distance of 1,680 Km. GSPA between Pakistan and Turkmenistan signed for 25 years in 2013. Project Implementation Company namely TAPI Pipeline Company Limited (TPCL) has been incorporated in November 2014. Turkmengaz has been endorsed as Consortium Leader of TPCL in August 2015. Ground breaking of the project was held in December 2015 in Turkmenistan. Ever since the ground breaking, operational work has been initiated on the pipeline with feasibility, design, route survey completed. Physical work has been started on the pipeline with expected first gas flow under phase-I by 2021.
10.4 OFF SHORE GAS PIPELINE PROJECT The $10 billion Off Shore Gas Pipeline Agreement between Pakistan and Russia is another historic and strategic project between the energy sectors of both countries. Memorandum of Understanding signed between Ministry of Energy of the Islamic Republic of Pakistan and Ministry of Energy of Russian Federation on September 27,2018 on cooperation of implementing offshore gas pipeline project. Memorandum of Understanding signed between Interstate Gas Systems (Private) Limited of Pakistan and Gazprom of Russia on February 06, 2019. The project was signed after successful discussions between the Ministry of Energy (Petroleum Division) and Ministry of Energy, Russia. The agreement aims at commencing a feasibility study for the Off Shore Gas Pipeline Agreement between both the countries. The feasibility study will be conducted by Gazprom Russia. ISGS will act as the local counterpart in executing the study. The project envisages transporting of gas molecules from Gazprom’s sources in the Middle East onwards to Pakistan with a possibility in extending it further to South Asian countries. The pipeline would follow an integrated approach including other ancillary projects such as Under Ground Gas storage, desalination and other power projects. Pakistan will import some 500 million to 1 billion cubic foot of gas from Russia daily, which would be transported via sea link. 10.5 IRAN-PAKISTAN (IP) GAS PIPELINE PROJECT: Gas Sales and Purchase Agreement has been signed in 2009 and subsequently ISGS completed the FEED and Feasibility studies. However, work on the project has been stalled due to sanctions on Iran. Despite an adverse international scenario, stringent imposition of sanctions on Iran, Pakistan took prudent and timely decisions to avert any unwarranted situation regarding payment of heavy penalties to Iran.
Ministry of Energy (Petroleum Division) Year Book 2017-18 83 Currently Pakistan engaged with Iran on this important project with high level visits from and to Iran. Both parties have resolved to take the IP project forward with mutual consensus and accord. The nominated Pakistani entity, ISGS, has continued to constructively engage with relevant stakeholders in Iran and is working on the way forward of the Project.
10.6 NORTH- SOUTH GAS PIPELINE PROJECT: The existing gas infrastructure of Pakistan lacks capacity to transport additional large volume of gas supplies from Southern to Northern regions of the country. Therefore, keeping in view the additional gas supplies from LNG Projects, Ministry of Petroleum and Natural Resources has planned to undertake the laying of about 1100 KM long gas pipeline from Karachi to Lahore under the title “North-South Gas Pipeline Project” which will carry 1.2 BCFD gas. This particular pipeline segment shall be capable to take injection of TAPI gas at Multan in addition to LNG to be supplied from Karachi terminal side. Inter State Gas Systems (ISGS) has been nominated as executing agency for the Project. ISGS is negotiating with a Russian company for implementation of the project under Government to Government arrangements. The North South gas pipeline will be crucial in enhancing transportation capacity of gas molecules. It is a major infrastructure project. The project comes in the backdrop of high level, breakthrough visits by the Russian and Pakistani Petroleum Ministers to their respective countries.
10.7 UNDER GROUND STORAGE (UGS) An Asian Development Bank (ADB) Mission visited Pakistan during September 2003, for providing Technical Assistance to identify suitable underground reservoirs in Pakistan that could be used to store natural gas for: (i) meeting seasonal gas demand fluctuations; and (ii) Strategic Underground Gas Storage (SUGS), for emergency supply into the proposed gas import pipelines. A Feasibility Study on the development of underground gas storages was undertaken by SOFREGAZ, France in 2004. The Consultant submitted the Final Report in November 2007 and recommended two potential sites of Khorewah and Bokhari in the Badin Block in Sindh Province for conversion into gas storages, and has also proposed various options for the project structure, financing and revenue generation from these gas storage projects. Unfortunately, indigenous gas is in constant decline and even the country’s gas requirements cannot be fulfilled. Therefore the development on the project was not progressed during 2010-2017 due to non-availability of excess gas. However, keeping in view the upcoming natural gas import projects including IPI, TAPI and import of LNG, ISGS is planning to develop and implement this project parallel with the commissioning of these pipeline projects to ensure the uninterrupted supply of natural gas.
Ministry of Energy (Petroleum Division) Year Book 2017-18 84 CHAPTER 11
Pakistan State Oil Company Limited
Ministry of Energy (Petroleum Division) Year Book 2017-18 85 11.1 Introduction Since 1976, with a vision of delivering value to the customers, Pakistan State Oil Company Limited (PSO) is serving the nation as an innovative and dynamic company. The Company is primarily engaged in the import, storage, and marketing of petroleum products. As the largest oil marketing company in Pakistan with 50% market share in liquid fuel sales and the largest liquid fuel storage in the country, PSO ensures to keep the country energized. PSO holds a strong product portfolio which includes Motor Gasoline (MoGas) by the brand name of “Altron Premium” and “Altron X 97”, High Speed Diesel (HSD) that is widely available on PSO retail outlets by the brand name of “Action +”, Furnace Oil (FO), Jet Fuel (JP1), Kerosene, CNG, LPG, Petrochemicals and Lubricants with brands for each segment, “Blaze for Motorcycle”, “Carient for Motor Cars” and “DEO for Diesel Engine” vehicles. In addition, the Company is establishing a strong presence in the non-fuel retail segment with a wide network of convenience stores with the brand name of “Shop Stop” and other associated services.
LIQUID FUEL MARKET SHARE FY2018 Others, 16%
TPPL, 7%
PSO, 50% APL, 9%
HASCOL, 12%
SPL, 7%
Source: OCAC data of FY18 11.2 PSO’s Infrastructure 3,514 retail outlets spread across Pakistan and 25 company operated company owned retail outlets Non Fuel related facilities at retail outlets including C stores, ATMs, Branchless banking, Oil Change, Lubricants, Car wash, Tyre air pressure, QSR (Quick Service Restaurants) Over 200 Shop Stops at retail outlets with 13 revamped to state of the art design and facility along with shop in shop 2 Lubricant Manufacturing Facilities with Blending Capacity of 70 KMTs / single shift operation per annum Around 51% of the nation's total working storage capacity (around 794 KMTs) 450 Cartage contractors with 7,940 tank lorries fleet out of which 190 are NHA /
INFRASTRUCTURE OGRA compliant. Network of 262 CNG facilities in more than 34 cities Nationwide acceptability of chip based secure cards at over 1200 retail outlets ISO certified Mobile Quality Testing Units to ensure high quality standard fuel to customers
Ministry of Energy (Petroleum Division) Year Book 2017-18 86 11.3 PSO’s Strategic Investment
62% Joint Installation of Marketing Companies
49% Asia Petroleum Limited
PSO Strategic 22% Pak Grease Manufacturing Company Ltd Investment 22.5% Pakistan Refinery Limited
12% PARCO White Oil Pipeline Project
% Share of PSO
11.4 PSO Business Lines
11.5 Highlights of PSO’s Performance Net Sales revenue increased by 20.4% to Rs. 1.1 trillion. Increase in white oil volumes by 5.7% due to strong growth in Mogas and HSD by 10.1% and 2.4% vs SPLY respectively. Ministry of Energy (Petroleum Division) Year Book 2017-18 87 Decline in Fuel Oil volumes by 29.6% vs SPLY owing to Government’s strategy of switching priority (merit order) of existing power plants to RLNG/ Natural Gas. Growth of 26.3% in LPG volumes (31.6 KMTs Vs 25 KMTs FY17) while four (04) auto gas facilities with brand name “Smart Gas” added Growth of 4.4% in Lubes volume vs SPLY Development and commissioning of State-of-the-art refueling facility at the New Islamabad International Airport in collaboration with Attock Petroleum Limited 100% market share in JP-8 exports with a volume growth of 135.7% placing PSO as one of the top 25 exporters of the country. In order to ensure un-interrupted supplies: o PSO imported 65% of industry imports while local Refinery upliftment improved by 10% over SPLY. Highest refinery upliftment in last five years o MOUs signed with NLC and NATCO Decrease in finance cost by 13.5% i.e. Rs. 0.5 Billion Top positions in Best Corporate Report Awards in the Oil and Gas Sector, jointly held by ICAP and ICMAP. PSO was also the joint second runner up in SAFA best presented Annual Reports Awards. Ensure Quality offering through Mobile Quality Testing Vans by conducting retail outlets visits throughout the country. In joint collaboration with Motorway & National Highway Police started certified drivers training program in FY18. During the year, 1200+ drivers were certified on safe driving practices. Reduction in finance cost by 13.5% through below benchmark interest rates. PSO borrowing was lesser than Kibor benchmark rate
Ministry of Energy (Petroleum Division) Year Book 2017-18 88 11.6 Major Events Date Event June 27, 2018 PSO leading fuel Brand among motorcar and motorbike users across Pakistan: PAKWHEELS report 2017 May 28, 2018 PSO launches environment friendly RON 97 fuel to deliver superior engine performance April 26, 2018 PSO signs agreement with PORT QASIM AUTHORITY to supply their entire fuel requirements April 12, 2018 Country's largest Fuel Farm Facility jointly setup by PSO and APL inaugurated at the New Islamabad International Airport April 05, 2018 PSO and FAW Motors China working to modernize PSO fleet to support CPEC Infrastructure March 29, 2018 PSO partners with LXY GLOBAL for Retail Leadership Conference 2018 March 21, 2018 PSO partners with AMAN TECH to transform youth for employability January 18, MEMBER OIL – OGRA inaugurated Regulatory compliant modern fleet of PSO 2018 January 05, PSO donated fund for deserving child patients to receive treatment at the AGA 2018 KHAN University Hospital December 21, PSO and SHAHID AFRIDI FOUNDATION joined hands to educate future 2017 generations of Pakistan December 04, PSO adopts TCF Schools to ensure continued provision of education for 2017 underprivileged students November 13, PSO Fuel Cards Program Honoured with the PMI Award 2017 November 07, Team PSO sweeps Gomal Zam Dam Jeep Race - Pakistan Motor Rally 2017 October 4, 2017 PSO agreement with Oil & Gas Development Company Limited (OGDCL) for Supply of High Speed Diesel (HSD) September 15, PSO Quality Assurance Laboratories received international recognition 2017 August 25, PSO secured third position in Best Corporate Report Awards jointly held by ICAP 2017 & ICMAP
11.7 PSO’s Initiatives/ value addition during the year PSO has been instrumental in taking Game changer initiatives that have transformed Pakistan’s downstream petroleum Sector. Some of the initiatives or value addition are captioned hereunder:
11.7.1 Augmented Product: Introduction of upgraded RON 97 version of Altron X97 Hi-Octane at 190 retail outlets across Pakistan
11.7.2 New Vision Retail Outlets: During FY18, 78 Retail outlets added during the year making total of 3,514 while, Online Ordering Management System (OOMS) extended to 1,870 outlets
Ministry of Energy (Petroleum Division) Year Book 2017-18 89 11.7.3 Revamping/ Upgrading of Shop Stop: PSO is upgrading and re-designing its Shop Stop. During FY 18, 13 no. of stores have been upgraded as per PSO’s new designed while Shop-in-Shop concept implemented by partnering with brands like Kitchen Cuisine, Espresso2go, Barasinga, and others.
11.7.4 Non-Fuel Retail Activities: Branchless banking services at over 200 Retail outlets Deployment of ATMs at 135 Retail outlets across the country while 19 vending machines at various retail outlets in Karachi, Lahore and Islamabad. Company is also exploring expansion opportunities to more retail outlets nationwide.
11.7.5 PSO’s Cards Business: Launch of an online and completely automated fuel management solution for customers "Fuelink". Moreover, prepaid re-loadable card also launched to serve Cartage contractors. PSO’s Cards Business recorded a sale of Rs. 48.3 Billion, growth of 24% compared to previous year. Overall over 750 new customers’ accounts were brought on board and approx. 42,000 new cards were created in FY 2018.
11.7.6 Lubricant brand activation: Rolled out new Oil change facility at 45 Retail outlets across country and initiatives like Mechanics dost program and Oil Advisor program were launched
11.7.7 Customer Care: During FY18, interaction with more than 680,500 customers through PSO’s Ta’aluq helpline
11.8 PSO’s CSR Activities: PSO has supported sustainable social development activities nationwide through the PSO Impact Program, by partnering with reputable charitable organizations working across Pakistan in the fields of healthcare, education and community building. The company’s financial contribution (1% of profit before tax) is invested and mobilized in various social and community development projects. In FY 2018, the Company, through its charitable arm, the PSO CSR Trust, has provided financial assistance of over Rs.175.0 million to Pakistan’s various charitable organizations working mainly in the healthcare, education, and community development sectors.
Ministry of Energy (Petroleum Division) Year Book 2017-18 90 CHAPTER 12
PAK ARAB REFINERY COMPANY
Ministry of Energy (Petroleum Division) Year Book 2017-18 91 Tasks Targets for FY 2017-18 Activities Completed 1. MFM Mogas Project (i) Increased capacity from 3 Increase capacity to 5 mtpa for Phase-I upgrade of capacity to 5 mtpa to 5 mtpa (phase-I) and phase-I of the project. mtpa further to 7 mtpa (phase-II) to Award of contracts for phase-II Construction contracts awarded. be achieved in FY 2018-19. of the project. EIA reports approved by EPA. (ii) Introduction of multi-product transportation capability in the Conversion of existing tanks. system. 2. MCR Revamp Project Revamp of MCR by increasing capacity from 100,000 bpd to Completion of engineering and Completion of Detailed 120,000 bpd by safety studies. Engineering of project. Procurement of Long lead items HAZOP study completed. (i) Revamp of existing units (LLI). Procurement of Long lead items (ii) Installation of 2 new units - Award of construction contracts. completed. modular isomerization and PSA unit. Construction contracts awarded. 3. PARCO Coastal Refinery Project Complete formalities related to The techno-economic feasibility The proposed project is a 250,000 incorporation of the new study has been completed. bpd grass-root refinery located at company. Project Company has been Hub, Baluchistan. It will be a Get board approval for initiation incorporated. significant addition to country’s of project existing oil refinery infrastructure, Government has allocated 1,811 with a focus on Euro IV products Get approval for fiscal acre land for project. for both domestic and export incentives and land allocation. Confirmation of incentives from markets. Hiring of PMC for initiation of GoP. project Phase-I Project Management Consultant (PMC) has been hired.
Ministry of Energy (Petroleum Division) Year Book 2017-18 92 Awards & Recognition Targets Achievements Credit Rating Maintain AAA credit rating as per the Achieved AAA entity credit rating for long term preceding years and A1+ for short term
Refinery Capacity Utilization Achieve maximum capacity utilization of the Above 100% capacity utilization for Refinery refinery
Pipeline Throughput Achieve 5 million M.Tons of HSD Achieved 5 million M. Tons of HSD throughput transportation through MFM pipeline as part through MFM pipeline. of MFM project phase-I
Occupational Health & Safety PARCO received latest ISO 45001:2018 Management System certification
Awards and Recognitions President of Pakistan Award 2017 by FPCCI 6th Consecutive FPCCI Achievement Award UN Global Impact Excellence Award 2017 Environment Excellence Award 2018 by NFEH Best Organization and best CEO award by EFP CSR leadership Excellence Award by NFEH Excellence in best HR Practices Award by EFP Fire and Safety Award by NFEH
Ministry of Energy (Petroleum Division) Year Book 2017-18 93 CHAPTER 13
SAINDAK METALS LIMITED (SML)
Ministry of Energy (Petroleum Division) Year Book 2017-18 94 13.1 INTRODUCTION
The Saindak Metals Limited (SML), formerly known as Resources Development Corporation of Pakistan (RDC), is a national company, which deals in exploration, exploitation and development of non-ferrous minerals and extraction of base metals like copper. The Saindak Copper-Gold Project (SCGP) was completed by Metallurgical Construction Corporation (MCC) in 1995 and handed over to SML in January 1996, after trial production of 1,500 Tons of Blister Copper. The project remained closed between1996 to 2002. In February 2000, it was decided to restart the project through leasing option by inviting International bids. Accordingly, GoP awarded the lease to M/s Metallurgical Construction Corporation of China (MCC) for a period of 10 years to operate the project as joint venture. M/s MCC Resources Development Company (Private) Limited (MRDL) arranged finances including working capital for maintenance, preparation, and rehabilitation and production activities amounting to US $ 25.915 million as per terms of contract. The project was handed over to M/s MCC China and commercial production started in August, 2003. Further 5 years agreement beyond 2012 was signed with China with the consent of Government of Balochistan and Ministry of Petroleum & Natural Resources.
13.2 ACHIEVEMENTS FOR THE PERIOD OF 2018:
13.2.1 PRODUCTION
The SCGP remained in production during the period of January 2018 to December 2018 and following quantities were produced:
i. Copper Ore 4,384,927.00 MT ii. Copper Concentrate 59,375.95 MT iii. Blister Copper 12,538.23 MT
13.2.2 SALES STATUS
MRDL exported following quantities of blister copper during the year 2018.
Blister Copper 12,540.42 M Tons
13.2.3 GOVERNMENT TAXES:
The Lessee paid US$ 4,807,141.97 Million as royalty @ 5% on sale value to Government of Balochistan. Similarly, 1% Presumptive Tax amounting to US $ 1,042,880.39 Million and EPZ service charges @ 0.5% amounting to US $ 521,440.19 Million were paid to EPZ authorities. On Ministry of Energy (Petroleum Division) Year Book 2017-18 95 account of Corporate Social Responsibilities (CSR) US $ 500,000 (estimated) paid to Government of Balochistan for Social Upliftment Activities.
13.3 Company Profile
a) Name and Address of the company with telephone and fax number: Saindak Metals Limited, Gul Bagh, Samungli Road, Quetta. (PAKISTAN) Tel +92- 081-9201645, 9201646, 9201475, 9201690, 9201815, 9201082, 9201084 Fax : 081-9204067. E-Mail: [email protected], [email protected]
b) Name of Chief Executive: Mr. Mohammad Raziq Sanjarani
c) Type of Company: Limited Liability Company, 100% owned by the Government of Pakistan.
d) Type of Business/Manufacturing: Metal Mining
e) Auditors: M/s Deloitte Yousaf Adil Chartered Accountant, 18-B/ 1, Chohan Mansion, G-8 Markaz, Islamabad
h) Legal Advisor: Mr. Mohammad Riaz Ahmed
13.4 Vision:
To make the country economically and financially sound through leasing out Saindak Copper Gold Project to a Chinese company, M/s MCC Resources Development Company (Pvt.) Limited (MRDL).
13.5 Mission:
To make Saindak Metals Limited, a vibrant organization, capable of bringing the mineable resources to a stage where investors (local and foreign) are attracted.
Ministry of Energy (Petroleum Division) Year Book 2017-18 96 13.6 Total Strength Of The Management:
EXECUTIVE / NON-EXECUTIVE STAFF: Executives 13 Regular / Non-Executive Staff (BPS 1-16) 42 Sub-Total: 55 Contract Employees 4 Piecework basis workers/miners 15 Sub- Total: 19
a. Province / Region-wise Breakup: Province/Region Punjab Sindh KP Balochistan AJK FATA TOTAL Officers - 3 1 08 1 - 13 Regular / Non- Executive Staff 1 1 3 34 3 - 42 (BPS 1-16 Staff) Sub Total: 1 4 4 42 4 - 55 Contract - - - 4 - - 4 Employees Piecework basis - - - 15 - - 15 workers/miners Grand Total: 1 4 4 61 4 - 74
b. Category and post-wise breakup of officer’s strength: Admn APO, AAO, Coord. Officer/ Compan Chief APO PS to Officer, Law y Enginee MD, Asstt Categor Sr. Officer, TOTA MD Secretar Manage r Store y/Post Account Engineer L y/ G.M r (A&P) (Mining Officer, s , (F) ) Asstt Officer Geologis Engineer t Head Office, 1 - - - - 6 4 11 Quetta Branch Office, - - 1 - - 1 - 2 Islamab ad
Ministry of Energy (Petroleum Division) Year Book 2017-18 97 Grand 1 - 1 - - 7 4 13 Total:
C. Category and post-wise breakup of contractual officer’s strength
Company Chief Engineer Assistant Manager Category/Post Principal (TTC) Secretary Mining (Admin Head Office, 1 1 1 - Quetta TTC Dalbandin - - - 1 Grand Total: 1 1 1 1
D. Breakup of regular / contractual / piecework basis workers etc.
Head Office, Quetta 61 Branch Office, Islamabad 9 Contract Employees 4 Total: 74
13.7 Corporate Social Responsibility (CSR) Activities for Social Uplift of the local Community:
On account of Corporate Social Responsibilities (CSR) US $ 1.876 Million paid to GoB in addition, since 2005 to 2012 MRDL in close collaboration/coordination with SML, spent Rs.206.932 Million on CSR related activities for instance:
Construction and establishment of “Saindak Model School” for improving the existing educational capacities of the deprived and underprivileged community children of the locality;
Construction and establishing of a (20) bed hospital for provision of free medical services to the residents of the nearby villages, facilities including: (chemical examination, electrocardiogram, B-Ultrasound examination, X-Ray fluoroscopy, treatment Debridement, suture, medical dressing change, injection), provision of medicines & vaccination on reduced charges, approximately 3,860 local populations are getting benefited by the Saindak Hospital.
Flawless supply of purified/clean drinking water to the nearby villages and also for the law enforcement agencies such as, FC, Police, BC & Levies, spending more than $20,000 each year for transportation of clean drinking water from Taftan to project site Saindak.
Ministry of Energy (Petroleum Division) Year Book 2017-18 98 Installation and activation of power-supply equipment for free electric power to the neighboring villages (namely: Killi Saindak, Killi, Sarwar, Killi Amalaf, Killi Noor Ahmed & Killi Syed Abad).
Scholarships to the talented and well deserving students around Balochistan, mainly from District Chagai, to the various reputed Schools & Cadet colleges around the country.
A state of the art Technical Training Centre at Dalbandin was also one of the great achievements of SML, the intentions of the establishment of the TTC was to to enhance the technical skills of the local youth in exploring and exploiting of the natural resources of the mineral rich District and also creating job opportunities for the youth for their future accomplishments;
Repairing and restoration of a 15 kilometer road from Taftan to Saindak for easy trouble free easy access;
Out of 1,500 employees at Saindak project; around 900 employees belonging from District Chagai.
Nokkundi Pure Water Supply Project is under process for its feasibility report by GoB (PHE Department). Rs.6 Million provided to GoB (PHE DEPT;) for 5 No. test holes and the total cost of the project would be Rs.160 Million.
SML in close collaboration with Balochistan Welfare Agency (BWA) has established a mobile health unit and free eye camps for the deprived and disadvantaged community of District Chagai by providing, free lenses & glasses, medicines, MHU awareness programs for the community, (a highly backward and underdeveloped area of Balochistan province with scattered population lacking health facilities).
13.8 PAYMENTS TO NATIONAL EXCHEQUER. 2018
Particulars US $ In Million Royalty 4,807,141.97 Development Surcharges 521,440.9 Presumptive Tax 1,042,880.39 SML Share of profit 5,000,000 (estimated) GoP against payable of liabilities (Loan) - GoB Social Upliftment 500,000 (estimated)
Ministry of Energy (Petroleum Division) Year Book 2017-18 99 13.9 ACTIVITIES/PROPOSALS TO BE UNDERTAKENFROM 2018
i. Further exploration/Development of East Ore Body (EOB) of SML Saindak Copper Gold Project
SML has three ore bodies i.e South, North and East. The contract has been extended with MCC/MRDL from Oct 2017 to Nov 2022.The remaining mineable ore of South and North ore body will sustain the project up to the mid of 2021. Therefore, alternate arrangements for the project continuity through further exploration/development of East ore body is the last option for SML. During the geological exploration period (1974 to 1977) SML formerly known as Resource Development Corporation (RDC) drilled 40 exploratory holes in the East Ore Body. According to reserve calculation and assay results of EOB, the estimated ore reserves were 273 million tons @ 0.34% copper which were not found promising to be mined. In 2007-2008, MCC/MRDL drilled further 16 exploratory holes then submitted the pre-feasibility study report for no economic values under the current economic and technical conditions in 2013.
On January 2019, MRDL submitted Design Scheme of Supplementary Geological Exploration for Saindak East Ore Body.. The SML BOD in its 136th meeting held on 24th February 2019 in Marriot Hotel Karachi principally agreed but officially not yet approved the design scheme of MRDL.
ii. Induction and Preparation of exploration team;
The SML board in its 134th Meeting held in Pearl Continental Hotel Karachi on June 30th, 2018, approved three Geology/Mining Software’s along with hiring of professionals i.e Mining Engineers/Geologists, Financial expert and software engineer for training and operating the Software. Now it is in the process of tendering. SML is expecting to establish a well-equipped exploration team for geological modeling, pit designing and development/exploitation of existing ore bodies of Saindak as well as to be utilized in rest of the country.
iii. Copper/Gold/Mlybdnum Deposits of Chigendiq Mashkicha near Durbancha Area Chagai District Balochistan.
Copper/Gold/Mlybdnum deposits of Chigendiq Mashkicha near Durbancha are located about 32 km NW of Nokundi Chagai District Balochistan. Exploration of the said area started by Saindak Metals limited (SML) through geological survey of Pakistan (GSP). IP survey and then three exploratory holes were completed (320 meter each) in 2017.
Some samples were randomly selected for geochemical analysis, the percentage of copper from 0.013 to 0.9%, gold varies from 0.2-3.08ppm, silver varies from 0.4-0.6ppm while molybdenum varies from 6.5-290ppm. This project need further exploration, the prospecting license of the said
Ministry of Energy (Petroleum Division) Year Book 2017-18 100 leased area has been expired and SML already applied for ML License in 2016 but still waited from Govt of Balochistan.
iV. Dasht- E- Kain Porphyry Copper Gold Molybdenum Deposits
Dasht-e- Kain is located at a distance of 48 km northwest of Chagai village in the Chagai arc, very close to the Pakistan- Afghanistan border. During 1978-82 Geological Survey of Pakistan carried out initial exploration and produced a geological and geochemical/geophysical IP anomaly maps. Three bore holes have been drilled in western stock. Average copper values in quartz sericite zone vary from 0.1-0.17% and in the potassium silicate zone from 0.25 to 0.54 %. The breccia pipe zone in the eastern stock contains surface values up to 4.5% copper but not drilled.
These preliminary results are very encouraging for further exploration. In 2007, prospecting License (PL) was granted to Saindak Metals limited (SML) , in 2009 SML submitted exploration scheme in MMDD Govt of Balochistan which was approved. But unfortunately the PL license was cancelled in 2010.The case is in the court.
13.10 SML Tax Issue
Apart from other threats at present, the tax issue initiated by Income Tax Department created a disturbing situation, by showing an punitive and ignorant behavior, if the persisting behavior of the Income Tax Department prevails, it would be very difficult for SML to survive its prosperous status as a socio economic organization and would be incapable to progress the ongoing and other under plan.
It is further added that, FBR has recovered Rs. 3.676 Million from SML through seizing SML bank accounts against income tax for the year 2006 to 2013. But consequently no date of hearing has yet been fixed. The negative approach of the Income Tax Department may cause a major agitation of jobs sharp fall of 2014 and ultimately would be a great loss for the Government to lose a profitable and earing reasonable revenue generating organization.
SML BOARD OF DIRECTORS
1 Mr. Muhammad Raziq Sanjrani Managing Director, Saindak Metals Limited 2 Syed Tauqir Hussain Additional Secretary (I&JV), MoE (PD) 3 Mr. Muhammad Iqbal Director General (Mineral), Ministry of Energy (Petroleum Division) 4 Brig. (Retd.) Khalid Sajjad Khokhar Managing Director, PMDC
Ministry of Energy (Petroleum Division) Year Book 2017-18 101 5 Mr. Nazar ul Islam Director General Geological Survey of Pakistan, GoP 6 Mr. Naseeb Ullah Bazai Addl. Chief Secretary (Dev.) Planning & Development Department, GoB 7 Mr. Saleh Muhammad Baloch Secretary, Mines & Minerals Department, GoB
Ministry of Energy (Petroleum Division) Year Book 2017-18 102 CHAPTER 14
http://www.pmdc.gov.pk
PAKISTAN MINERAL DEVELOPMENT CORPORATION (PVT) LIMITED (PMDC)
Ministry of Energy (Petroleum Division) Year Book 2017-18 103 14.1 Introduction PMDC was established in July, 1974 as a Private Limited Company under the Companies Ordinance, 1984 to undertake exploration, evaluation, development, mining marketing and export of mineral deposits of the country. PMDC in its capacity as a Federal body is endeavoring to deliver goods in the field of mineral exploration and exploitation. 2. PMDC has achieved commendable physical and financial achievements in the recent past despite of constraints coupled with national and international economic crises. As a result of concerted efforts of the employees and the management, PMDC turned around in a big way and became the progressive organization with no loan liability and bank borrowing. Its yearly profit (before tax) during the year 2017-2018 was Rs. 375.210 million as compared to the profit of Rs. 401.959 million earned during last financial year 2016-17. PMDC is determined to further improve its efficiency during the years to come.
14.2 Board Of Directors
1. Chairman Chairman/ Vacant 2. Brig (R) Muhammad Khalid Sajjad Khokhar, SI (M), Managing Director Managing Director 3. Representative of Ministry of Finance (nomination awaited) Director / Vacant 4. Director General (Minerals), Ministry of Energy Director 5. Mr. Aimal Khan Achakzai Director 6. Mr. Faizan S. Syed Director 7. Syed Wasiq Mehmood Director 8. Representative of Employees Empowerment Trust Director/ Vacant (under BESOS)
3. All Directors are nominated by the Government of Pakistan.
14.3 Physical Performance 1. Production and Sale of Salt During the Financial Year 2017-18, production of salt was 1,406,363 tonnes as compared to the production of 1,310,427 tonnes achieved during last year 2016-17. The sale of salt during the year 2017-18 was 1,356,513 tonnes as compared to the sale of 1,321,387 tonnes during last year 2016-17. During the period under reference, PMDC exported 2,419 tonnes salt to foreign countries. Project-wise Production & Sale of Rock Salt (Tonnes) (2017-18)
PROJECTS Target Actual Production Sale Production Sale Khewra Salt Mines 430,000 433,544 389,134 391,008 Makrach salt Mines 120,000 120,000 117,542 117,542
Ministry of Energy (Petroleum Division) Year Book 2017-18 104 Warcha Salt Mines 660,000 694,785 696,038 644,315 Kalabagh Salt Mines 156,500 156,500 142,540 142,541 Jatta / B.Khel Salt Quarries 75,000 75,000 61,109 61,109 TOTAL: 1,441,500 1,479,829 1,406,363 1,356,513
2. Production and Sale of Coal
Production of coal from PMDC coal mines during the financial year 2017-18 was 647,869 tonnes which comes to of the budgeted target of 635,000 tonnes. The production of 581,518 tonnes achieved during the last financial year 2016-17. Sale of coal during the year 2017-18 was 648, 935 tonnes against the budgeted target of 635,781 tonnes. The sale of coal was 582,307 tonnes during the last year 2016-17.
Project-wise Production & Sale of Coal (Tonnes) (2017-18) PROJECTS Target Actual Production Sale Production Sale Degari Collieries 18,000 18,000 22,450 22,594 Sor-Range Collieries 75,000 75,781 66,359 67,281 Sharigh Collieries 230,000 230,000 230,927 230,927 Lakhra Coal Mining Project 312,000 312,000 328,133 328,133 TOTAL: 635,000 635,781 647,869 648,935
14.4 Financial Performance For The Year 2017-2018 On overall basis, PMDC earned profit of Rs. 375.210 million during the Financial Year 2017-2018 as compared to the profit of Rs. 401.959 million earned during the last financial year 2016-17.
14.5 Physical / Financial Targets For FY 2018-19
PHYSICAL GOALS/TARGETS FOR FY 2018-19
Projects Production (Tonnes) Sales (Tonnes)
Rock Salt 1,540,000 1,628,201
Coal 675,000 675,691
Ministry of Energy (Petroleum Division) Year Book 2017-18 105 FINANCIAL TARGETS FOR FY 2017-18
Budgeted (Rs in millions)
Profit Before Tax 415.223
14.6 Other Achievements
The share of PMDC in the country’s rock salt production/sale is over 50%. PMDC earned accumulated profit of Rs. 400.587 million as on 30.06.2018. It is after transferring Rs. 1165.080 million towards General, Depletion and Insurance reserves. There is neither loan liability nor any bank borrowing. PMDC has paid cumulative dividend of Rs. 685 million upto 30.06.2018 which is 6850% of the total equity fund from the Govt of Pakistan.
14.7 Pmdc As An Executing Agency PMDC as an Executing Agency has undertaken exploratory work for Coal & Copper at the following projects in FATA, which have been sponsored by FATA Development Authority:
I. Exploration and development of North Waziristan Copper with a total cost of Rs.172.722 million is underway. Previous exploration in the area established existence of 35 million tonnes of copper of which 8 million tonnes is in the proved category having 0.8% copper content. The present study is aimed at to enhance the resource up to 50 million tonnes with 0.8% copper content through geophysical survey and deep drilling so that a prospective investor, local or foreign may be able to exploit the resource.
Geological mapping, sampling and geophysical survey has been completed at the project. Drilling operations have been resumed. The project activities have been started.
II. Exploration and Resource Estimation of coal in Shirani area F.R.D.I. Khan costing Rs. 92.772 million was undertaken. Huge deposits of coal occur in the Ghazij Formation in different areas of Balochistan. The same coal bearing formation is well developed in Shirani area as well. The scheme was aimed at establishing the continuation of Balochistan coal in Shirani area D.I. Khan under the similar geological environments.
Ministry of Energy (Petroleum Division) Year Book 2017-18 106 Geological mapping, sampling, trenching and assaying has already been undertaken. As a result of initial surface exploratory activities, coal showings/ stringers have been witnessed on the surface as well as in the trenches. However, the project has been abandoned due to law and order situation..
14.8 Joint Venture PMDC entered into an agreement with M/s MCC, China for the development of Duddar Lead-Zinc deposits in Lasbella, Balochistan on 03.11.2003. The construction/ development work of the project involved Chinese investment of US$ 111 million. Trial production of lead-zinc and the preparation of its concentrate started in November 2008.
Later on MHD, MCC Huaye Duddar Mining Company (PVT) Ltd. a company of MCC Group took over the affairs of the Joint Venture as a result of Addendum Agreement signed on 15.06.2015. During starting two years extensive repair along with commercial production and development was carried out however, at the end of colander year 2017 the financial results of joint venture are showing a net profit of US$ 12.44 million . The profit share of PMDC and Govt. of Balochistan jointly as a result of original agreement signed in 2003 becomes 20-25 % depending upon the financial outcome with respect to the estimates by ENFI. This project is first of its kind in the underground metal mining in Pakistan. PMDC will get 20-25 % share in the profit of the project which will be further shared by PMDC and Balochistan Development Authority on 50:50 basis.
Hence a net profit of US$ 2570139 @ 20% or US$ 3212673 @25% is realized in the accounts book and is payable to PMDC and Govt. of Balochistan once loans & outstanding liabilities are paid off .
278,923.24 tonnes of ore was mined and processed to get 41,658.16 tonnes of Zinc concentrate and 5,228 tonnes of lead concentrate exported during the financial Year.
14.9 Future Outlook
1) PMDC is well set to meet the targets fixed for the financial year 2018-2019. 2) Coal is an important energy substitute. PMDC is endeavoring to meet the enhanced demand of coal for cement and power plants which were previously fired by the furnace oil/ natural gas. In this way, the use of coal by the above said plants will help to reduce the foreign exchange required for the import of furnace oil. 3) All efforts are being made to further increase the export of rock salt in the International market. 4) PMDC is determined to increase the profitability of the corporation by enhancing its share of coal & salt in the domestic market.
14.10 Company Profile
a. Name and Address of the company with telephone and fax number: Pakistan Mineral Development Corporation (Pvt) Limited. Head Office, 13 -H/9, Islamabad.
Ministry of Energy (Petroleum Division) Year Book 2017-18 107 Telephone # 051-9265123-24 Fax # 051-9265127-28
b. Name of Chief Executive Brig(R) Muhammad Khalid Sajjad Khokhar, SI (M), Managing Director
c. Type of Company Private Limited Company, 100% owned by the Government of Pakistan. d. Annual Turnover Gross sales for the year ending 30th June 2018 were Rs. 2607.372 million. e. Profit after Tax Rs. 375.210 million.
f. Type of Business/Manufacturing Involved in mining and marketing of rock salt, table/powder salt, coal, gypsum and silica sand. Undertakes new exploration and development projects of mineral resources. Also provides consultancy services. g. Auditors M/s. Horwath Hussain Chaudhry, Chartered Accountants, Islamabad.
h. Legal Advisor Mr. Majid Bashir, Advocate, Islamabad. i. Bankers a. National Bank of Pakistan. b. Habib Bank Limited. c. Bank Al-Falah. d. United Bank Limited. e. Allied Bank Limited. f. Askari Commercial Bank Limited. g. Soneri Bank Limited.
14.11 Total Strength Of The Officers / Supervisors And Staff / Workers As On 30.06.2018 14.12 Officers 93 Supervisors 42 Staff and Workers 1304
Total: 1439
Ministry of Energy (Petroleum Division) Year Book 2017-18 108 PROVINCE/REGION WISE BREAKUP Province/ Punjab Sindh KPK Baluchistan AJK FATA / Total Region GB Officers 46 18 13 10 2 4 93 Supervisors 17 8 6 9 2 - 42 Staff/ Workers 700 111 148 304 27 14 1304
Total: 763 137 167 323 31 18 1439
14.13 Social Responsibility And Community Development Programme Undertaken
Established Schools, College & Survey Institute to provide education to the mining community and other people of the area.
Established Hospital & dispensaries to provide health services to the workers in the remote areas of its mining projects.
Establishment of Asthma Resort Allergic Asthma is an ailment which is hurting about 15% population of our country, who include 10% children. In order to control it through natural therapy, PMDC has established an Asthma Resort as a Pilot Project at Salt Mines Khewra. The results of the resort are encouraging which is likely to be expanded in due course of time. On this theory, two Asthma Resorts are already functioning in the world, one at Wieleczka Salt Mines in Poland and other at Ukrainian Salt Mines, Ukraine. By the grace of Allah (SBT), Khewra Allergological Asthma Resort is unique and first of its kind in Pakistan. Establishment of Tourist Resort PMDC has established a Tourist Resort of international standard at Khewra, which is not less than a wonder of the World because of the natural beauty inside the mountain. All cross-sections of societies from home and abroad visit the Tourist Resort as a part of recreation and study tour.
Other Facilities
PMDC is providing free of cost drinking water to the local community regularly residing near its operating projects.
Ministry of Energy (Petroleum Division) Year Book 2017-18 109 PMDC provided land to the FC at Sharigh, Balochistan for the construction of School / College where children of employees and locals will get education. PMDC provides training / internship to the students of mining, business, administration deputed by the different colleges/ universities as per course requirement.
14.14 Chart Showing Payments To National Exchequer In The Form Of Royalty/Excise Duty/ Sales Tax For The Financial Year 2017-2018 Particulars Rs. in million Income Tax 61.215 Royalty 166.634 Excise Duty 11.669 Sales Tax 446.365
Total: 685.883
14.15 Financial Highlights For Last Five Years
Year Ended 30th June 2014 2015 2016 2017 2018 Sales Revenue 2607.372 2059.995 2318.247 2748.394 2450.984 (Rs. In millions) Profit Before Tax 401.959 375.210 309.926 332.428 585.005 (Rs. In millions) Profit after Tax 296.914 312.032 195.061 228.735 431.878 (Rs. In millions) Shareholders’ Equity 10.000 10.000 10.000 10.000 10.000 (Rs. In millions) Debt Equity Ratio 0.72 0.68 0.62 0.74 0.68 Current Ratio (acid test) 2.77 2.73 3.47 2.82 3.32 Interest Cover Ratio (No. of times) NIL NIL NIL NIL NIL Selling & Distribution to Sales 6.31% 5.88% 4.88% 5.4% 5.32% Revenue (%) Financial charges to Sales Revenue 0.04% 0.05% 0.04% 0.03% 0.04% (%)
Ministry of Energy (Petroleum Division) Year Book 2017-18 110 Earnings Per Share-Basic / 195.06 228.74 431.88 296.91 312.03 Diluted(Rs Per Share) Dividend Per Share (%) 650% 500% 500% 1136% 1364% Return on Capital Employed (%) 1950.61% 2287.35% 4318.78% 2969.14% 3120.32% Fixed Assets Turnover Ratio 13.184 14.343 11.468 7.531 7.429 (Times)
Ministry of Energy (Petroleum Division) Year Book 2017-18 111 CHAPTER 15
LAKHRA COAL DEVELOPMENT COMPANY LIMITED
HEAD OFFICE LCDC Bungalow No.C6-A, Block-F, Gulshan-e-Jamal, near Macca Motors, off. Rashid Minhas Road, Karachi-75250 Tel: (021) 99245232,5-9 Fax: 021-99245234 www.lcdc.gov.pk Email: [email protected] [email protected]
Ministry of Energy (Petroleum Division) Year Book 2017-18 112 15.1 Introduction Lakhra Coal Development Company Limited (LCDC), was incorporated as a Public Limited Company on 6th February, 1990 under Companies Ordinance, 1984. The Company is a Joint Venture of Pakistan Mineral Development Corporation (PMDC), Government of Sindh (GOS) and Water & Power Development Authority (WAPDA) with equity capital of Rs.50 million shared in the ratio of 50:25:25 respectively. Being an State Owned Entity (SOE) of Pakistan, as approved by the cabinet on 5th August, 2009 Empowerment of Employees of SOEs / other GoP share holding through transfer of twelve percent (12%) of the GoP shareholding and a seat on the Board, accordingly the 12% of shares of PMDC only has been allotted and a LCDCLEET trust has been incorporated.
15.2 Board Of Directors
Brig. (R) M. Khalid Sajjad Khokhar (SIM) Managing Director, Pakistan Mineral Dev. Company (PMDC)
Mr. Muhammad Yaqub, General Manager (A&E), Pakistan Mineral Development Corporation (Pvt.) Ltd. Mr. Naveed Asghar Chaudary General Manager Finance (Power), WAPDA Mr. Ghulam Shabeer Jatoi Chief Executive Officer, LPGCL, Khanote Mr. Muhammad Rashid Khan Ex-General Manager, Pakistan Mineral Development Corporation (Pvt.) Ltd Engr. Noor Muhammad Khan LCDCL Employees Representative on Board as per BESOS/ Ex-GM, PMDC Mr. Abdul Majeed Zahid Ex-General Manager, Pakistan Mineral Development Corporation (Pvt.) Ltd Engr. Muhammad Anwar Soomro Managing Director/ Chief Executive
15.3 Lakhra Coalfield The Company project comprising operating coal mines, is situated in Lakhra Coalfield located about 70 km north-west of Hyderabad city and 200 km North-East of Karachi. The property lies between latitude 25-35’ to 25-55’ (north-south) and longitude 68-0’ to 68-12’ (east-west).
15.4 Mining Concession Presently an area of 7943 acres of Compact Block Coal lease is in possession of LCDC at Lakhra Coalfield for development of coal mines and supply of coal to LPGCL (WAPDA) Thermal Power Station at Khanote, District Jamshoro, Sindh. The total proved reserves in the area are 42 million tonnes.
15.5 Company’s Objective Prime objective of the Company is to develop Lakhra Coal Mines to supply Coal to 150 MW Thermal Plant of LPGCL (WAPDA) at Khanote which was originally planned for 6x50 MW with annual coal consumption of 15,00,000 M.Tonnes. However, only 3x50 MW
Ministry of Energy (Petroleum Division) Year Book 2017-18 113 plant was set up which also operated much below its rated capacity reducing the coal requirement to even less than 50% and rendering the mechanized mining uneconomical. At later stage it was decided that remaining 3 units would be set up by private sector instead of WAPDA and accordingly an area of 8622 acres, out of 16,564.71 acres of Compact Block was withdrawn from LCDC leased area.
15.6 Implementation Status
LCDC engaged Chinese Company for Geotechnical studies and design and development of mechanized mines in the entire area of 16,564.71 acres. Geotechnical studies were completed and mine design prepared by the Company. LCDC was in the process of signing mine development contract with Chinese Company but it transpired that WAPDA had decided not to set up remaining 3 power units and the installed units operating at much lower capacity were expected to consume half of stipulated annual quantity of coal. Under these circumstances it also became difficult to arrange finances for the Company and thus it was decided to drop the idea of mechanized mines and was considered appropriate to develop coal mines with present semi mechanized system to meet the limited coal requirement of installed thermal plant. Heavy mechanization cost would have rendered the venture uneconomical if assured uninterrupted market for stipulated annual quantity of 750,000 tonnes was not available for operating coalmines. At present LCDC is operating coalmines through local manual mining system through investment by its Coal Raising Contractor.
15.7 Infrastructure Facilities
For the purpose of development / operation of mines necessary infrastructure as stated below has been developed: -
i) Fair weather roads have been constructed for transportation of coal from mines to main road leading to market. Also fair weather roads connecting various mines have been developed ii) Sufficient numbers of residential colonies for labour have been constructed along with necessary amenities. iii) Water supply arrangement for residential colonies as well various mines have been made through water tanker as well as concrete water tank at colonies and mines iv) Electric generators have been set-up for emergency lighting and mines lamp charging v) A mobile phone communication has been set-up to facilitate fast communication with mines site office.
15.8 Mine Planning And Technical Supervision LCDC has employed a technical team of Mining Engineers, Geologist and survey officer supported with mine supervisory Sirdars and clerical staff. All operations of Raising Contractor are supervised/ guided by this team to ensure that all operations are carried out in accordance with statutory guideline and maximum possible recovery is ensured. The technical team overseas that the operations of Raising Contractor are in accordance with mine plan duly approved by LCDC.
Ministry of Energy (Petroleum Division) Year Book 2017-18 114 15.9 Status Of Mine Development LCDC has 45 mines fully developed and capable of each producing average 20 M. 115ones coal per day while 12 mines are under development. Coal excavation is carried out by applying shortfall retreating method after developing coal panels at 50 ft interval. When a panel is completely mined, it is sealed off and coal excavation is started from next panel. Ventilation circuit is maintained through main incline as intake and main shaft as return air way. In case mine workings are extended far away from main shaft, an additional shaft is provided to improve airflow through coalface. Shaft is also used for coal hauling and material lowering while incline is also used as traveling way for labor.
15.10 Coal Sales Thermal Plant remained under trial during 1992-93 to 1994-95 and regular coal supplies could be started from the year 1995-96. Initially, coal supplies were made by LCDC partially from its own mines and partially from PMDC. After developing of Company’s own mines, the Company is capable of meeting total coal requirement of Thermal plant. However, approximately 60% of coal supplies are made by LCDC and balance 40% supply from coalmines of PMDC through an internal arrangement between LCDC and PMDC. Due to under capacity operation and frequent shutdowns of WAPDA Thermal Plant, coal supplies to plant are much below the planned quantity of 7,50,000 tonnes. The plant is hardly using 200,000 to 250,000 tonnes coal, which is also jointly supplied by LCDC and PMDC. Therefore, LCDC has started selling surplus coal in open market so that the company does not run in losses. The Company has sold total quantity of 1,876,087 tonnes of coal upto 30.06.2018. The yearly break-up since financial year 1994-95 to 2017-2018 is given below:
YEAR LCDCL PMDC TOTAL OPEN SALE
1993 – 1994 12,429 - 12,429 1994 – 1995 63,176 24,885 88,061 0 1995 – 1996 173,416 116,831 290,247 0 1996 – 1997 181,214 118,689 299,903 0 1997 – 1998 186,854 107,376 294,230 0 1998 – 1999 262,219 132,870 395,089 8,873 1999 – 2000 229,204 115,537 344,741 6,914 2000 – 2001 122,446 79,754 202,200 67,472 2001 – 2002 163,297 86,533 249,830 110,006 2002 – 2003 136,200 67,432 203,632 126,122 2003 – 2004 136,995 49,388 186,383 92,286 2004 – 2005 139,375 40,941 180,316 58,383 2005-2006 101,973 61,375 163,348 51,407 2006-2007 108,142 55,290 163,430 58,140 2007-2008 124,126 38,651 162,777 61,605 2008-2009 99,601 20,248 119,849 62,242 2009-2010 99,644 26,493 126,137 183,080 2010-2011 87,818 8,492 96,310 188,147
Ministry of Energy (Petroleum Division) Year Book 2017-18 115 2011-2012 101,700 2,440 104,140 146,100 2012- 2013 63,219 144 63,363 165,750 2013-2014 148,306 10,712 159,018 66,964 2014-2015 132,256 15,561 147,817 83,345 2015-2016 143,297 9,935 153,233 91,907 2016-2017 114,214 8,822 123,036 92,638 2017-2018 5,479 5,479 154,706 Total 3,136,598 1,198,399 4,334,997 1,876,087
PROFIT & DIVIDEND FOR LAST 10 YEARS Year Profit After Tax Dividend 2007-2008 18.861 million 20% 2008-2009 10.913 million 20% 2009-2010 43.505 million 40% 2010-2011 64.281 million 0 2011-2012 98.000 million 0 2012-2013 54.686 million 0 2013-2014 200.000 million 400% 2014-2015 165.000 million 330% 2015-2016 101.690 million - 2016-2017 139.236 million - 2017-2018 4.597 million -
PRESENT STATUS: LCDC is supplying coal to LPGCL (WAPDA) 3X50 MW FBC Power Plant.
Ministry of Energy (Petroleum Division) Year Book 2017-18 116 Chapter 16
Pakistan LNG Limited (PLL)
9th Floor, Petroleum House G-5/2, Ataturk Avenue, Islamabad Pakistan Tel: (051) Fax: 051- www..gov.pk Email:
Ministry of Energy (Petroleum Division) Year Book 2017-18 117 Quantity of LNG Imported Value of LNG Imported (Metric Tonnes) (Million USD)
1,378,553.03* 593.38626**
* During the period from November 24, 2017 (commencement of supplies on the 2nd LNG terminal) to June 30, 2018.
** Port Qasim Authority (PQA) port charges are part of the LNG DES price as determined by OGRA. The total value of LNG imported is based on the provisional assessment of port charges by PQA, which is subject to change upon issuance of the final invoices. Also, cost incurred on account of commissioning cargo is included in the total values of LNG Imported.
Ministry of Energy (Petroleum Division) Year Book 2017-18 118 Chapter 17
Pakistan LNG Terminals Limited (PLTL)
5th Floor, Petroleum House G-5/2, Ataturk Avenue, Islamabad Pakistan Tel: +92-051-9216901 Fax: +92-051-9216902 www.paklngterm.com
Ministry of Energy (Petroleum Division) Year Book 2017-18 119 1. To establish the 2nd LNG re-gasification Terminal, PLTL signed an LNG Operations and Services Agreement (OSA) with PGP Consortium Limited (PGPCL) on July 1, 2016 at a levelized tolling fee of US$ 0.4177/MMBTU, for a period of 15 years. Terminal commenced its commercial operations on January 4, 2018. Kindly indicate the number of cargoes processed so far and the cargoes likely to be processed during the year 2019. 2. Pakistan LNG Terminals operating in public sector has proposed comprehensive strategy for Optimum Utilization of two LNG Regasification Terminals under ambit of Government of Pakistan in accordance with existing Contracts sent to DG LGs and DG Gas for consideration. The strategy once implemented will result in annual savings in regasification cost by PKR 860 Million. 3. The Regasification Capacity at terminal 1 and 2 is paid through a guaranteed fixed Capacity Charge, therefore, any idle terminal capacity results in higher regasification tariff. Therefore, as a long term measure PLTL has proposed to minimize the idle capacity, both terminals may allowed to provide regasification services to interested private sector parties in addition to their existing arrangements. This shift in policy will require regulatory, contractual as well as operational issues.
The above methodologies will pave the way towards optimal utilization at LNG Terminals while opening avenues for private participants in the RLNG value chain, which will result in competitive RLNG prices and lowered financial risk for the Government of Pakistan.
Ministry of Energy (Petroleum Division) Year Book 2017-18 120