Yearbook2019 20

YEAR BOOK
2019-2020
GOVERNMENT OF PAKISTAN
MINISTRY OF ENERGY
(PETROLEUM DIVISION)
A-BLOCK PAK-SECRETARIAT
ISLAMABAD
TABLE OF CONTENTS
S# Description Page No.
1. GENERAL…………………………………………………………… 1-6
MISSION STATEMENT……………………………………………. 2
STRATEGY TO ACHIEVE MISSION……………………………….. 2
FUNCTIONS OF THE DIVISION………………………………… 2
ORGANIZATION OF THE DIVISION……………………………. 3
ADMINISTRATION WING…………………………………………. 4
DEVELOPMENT WING (INVESTMENT & JOINT VENTURE)… 4
MINERAL WING…………………………………………………….. 5
POLICY WING………………………………………………………. 5
ATTACHED DEPARTMENT, AUTONOMOUS BODIES, 5
CORPORATIONS AND COMPANIES OF THE DIVISION
WEBSITE OF THE DIVISION…………………………………….. 6
2. ACTIVITIES, ACHIEVEMENTS AND PROGRESS 7-16
MINERAL WING…………………………………………………… 8
POLICY WING…………………………………………………….. 10
(i) DIRECTORATE GENERAL OF OIL………………... 10
(ii) DIRECTORATE GENERAL OF GAS ………………. 13
(iii) DIRECTORATE GENERAL OF LIQUEFIED
15
GASES………………...
(iv) DIRECTORATE GENERAL OF PETROLEUM
15
CONCESSIONS………………….
3. DEPARTMENT OF EXPLOSIVES (DoE) 17
4. GEOLOGICAL SURVEY OF PAKISTAN (GSP)……………….. 21-28
INSTITUTIONAL STRUCTURE…..……………………………...... 22
BUDGET AND FINANCE …………………………………………. 23
ACTIVITIES, ACCOMPLISHMENTS AND PROGRESS ………. 24
PUBLIC SECTOR DEVELOPMENT PROGRAMMES…………… 26
i
5. HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN 29-35
(HDIP)…………......................................................
INTRODUCTION…………………………………………………… 30
UPSTREAM ACTIVITIES………………………………………….. 31
DOWNSTREAM ACTIVITIES…………………………………….. 32
COMPANIES………………………………………………………
6. OIL AND GAS DEVELOPMENT COMPANY LIMITED ………… 35
7. PAKISTAN PETROLEUM LIMITED……………………… 38
8. GOVERNMENT HOLDINGS (PVT.) LIMITED……………….. 54
9. SUI NORTHERN GAS PIPELINES LIMITED ………….. 66
10. SUI SOUTHERN GAS COMPANY LIMITED…………… 68
11 INTER STATE GAS SYSTEMS (PVT) LIMITED………………. 72
12. PAKISTAN STATE OIL COMPANY LIMITED………… 77
13. PAK ARAB REFINERY LIMITED……………………….. 85
14. SAINDAK METALS LIMITED…………………………… 93
15. PAKISTAN MINERAL DEVELOPMENT
101
CORPORATION…………………………………………….
16. PAKISTAN LNG LIMITED………….………….………….… 108
17. PAKISTAN LNG TERMINALS LIMITED………….………… 110
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 2019-20. 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: 2021 Mr. Ali Raza Bhutta

Secretary
iii
CHAPTER 1: GENERAL
Ministry of Energy (Petroleum Division) Year Book 2019-20 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 2019-20.
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 THE 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.
• To attract FDI in Oil, Gas & Mineral Sector by facilitation.
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 of oil & gas sector;
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;
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 relates 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.
7. Department of Explosives.
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, one CF&AO, two Joint Secretaries and five Directors Generals.

Petroleum Division
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), alongwith

procurement.
• 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 of 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 development projects and monitoring. It also processes foreign aid/loan and
coordination with the World Bank, ADB, CIDA, IDB JICA etc. 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 head by Director General

(Minerals) 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.
• 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/technical issues of
federal public sector bodies /attached departments (PMDC/SML/LCDC/GSP).
• 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 of (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 two attached department, one sub-ordinate office, one
autonomous body and eleven organizations/companies under its administrative control:
• Geological Survey of Pakistan (GSP) [Attached Department].

• Department of Explosives [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)
• 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.

CHAPTER 2 : ACTIVITIES, ACHIEVEMENTS AND
PROGRESS DURING 2019-20

2.1 MINERAL SECTOR OVERVIEW
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, topaz and tourmaline etc. Both public and private sector organizations
including foreign entrepreneurs are engaged in exploration and exploitation of these natural
resources.
2.2 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.
2.3 NATIONAL MINERAL POLICY FOCUS
The Government has been encouraging investment in the minerals sector. The
Government of Pakistan announced first national mineral policy in 1995 with inputs of the
international experts [Commonwealth Secretariat] and the consensus of all federating units.
This initiative paved the way for an expansion of mining sector activities in the country as
well as the improvement of the sector’s investment attractiveness. Pakistan has a fairly large
mineral resource base and there has been growing interest from international mining
companies. With a view to ensure alignment with the contemporary practice and enhance
international competitiveness of the sector through attractive fiscal and regulatory regimes,
the National Mineral Policy was updated in 2013 in consultation with all
stakeholders/Provinces and approved by Council of Common Interests for implementation.
2.4 FUNCTIONS
Mineral Wing is a technical arm of the Petroleum Division and is entrusted with
the following functions:-
• Frame mineral sector related policies and monitor implementation by the concerned
organizations;
• Provide support to the Provinces in improving regulatory regime, negotiation of mineral
agreements [international] and capacity building;
• Promote and facilitate local and foreign investment in the mineral sector;
• Dealing with operational issues of federal public sector mining & mineral organizations
(PMDC, SML, BME, LCDC & GSP);
• Dealing with Joint Commissions and MoU/agreement with different countries, ECO,
SAARC and other fora for minerals related agenda;
• Mineral Sector Database;
• Monitor progress of public sector mineral development projects;
• Provide inputs for budget, economic survey reports and mineral sector development plans
and China Pakistan Economic Corridor (CPEC) etc.;
• Promotion of mineral sector through organizations and participation in seminars and
workshops, including representation at world fora;

• Defense of minerals sector litigation cases in local and international courts;
• Parliament Business related to minerals other than mineral oil and natural gas; and
• Coordination with Provincial departments and other Federal Ministries/ organizations, etc.
Achievements
A. A Memorandum of Understanding (MoU) has been signed between the Governments of
the Kingdom of Saudi Arabia (KSA) and Pakistan on 17.02.2019 regarding bilateral
economic cooperation in the mineral resources sector. In follow-up of this MoU, Pakistani
delegation visited the KSA to ascertain mining and processing expertise of Saudi side.
After due consultation with the Provinces and concerned federal organizations, the
following implementation proposals were identified and presented to the Saudi
counterparts for possible joint ventures during their visit to Pakistan in September 2019:-
I. Copper exploration and development opportunities in Chagai District (other than
Reko-Diq & Saindak);
II. Surface Coal Gasification of Thar Coal, Sindh for Urea production;
III. Barite-Lead-Zinc Processing Project (Balochistan); and
IV. Establishment of Steel Mill based on iron ores of Chiniot-Punjab and Chagai area-
Balochistan.
B. Revamping of PMDC – induction of professionals in management team;
Managing Director, General Manager (Business Development), General Manager (HSE),
Chief Internal Auditor and Company Secretary etc.
C. Formulation of Strategic Plan for Mineral Sector Development.
D. Establishment of National Minerals Data Center included in the PSDP 2020-21.
E. Initiated process for rail connectivity of Thar Coal-field;
F. Motivation to fertilizer manufacturing companies for combined efforts to conduct
feasibility studies for Thar Coal gasification and coal to liquid engineering projects;
G. Promotion of power generation based on indigenous coal instead of imported fuel;
H. Approval and implementation of plan for large-scale mining in Balochistan. A dedicated

company Balochistan Mineral Exploration Company (BMEC) has been established for
this job as joint venture between Federal and Provincial Governments;
I. Facilitation of Geological Survey of Pakistan (GSP), PMDC, SML and BME in
operational matters. Bolan Mining Enterprises (BME) is carrying out exploration and
mining of barite, lead-zinc & iron ores; Saindak Metals Limited (SML) engaged at
Saindak Copper-Gold Project and Pakistan Mineral Development Corporation (PMDC)
working for coal, rock salt and lead-zinc ore mining and processing;
J. Preparation and processing of mineral sector project port-folios and suggestions for
bilateral cooperation with international aid agencies, including the technical cooperation
with other countries; and
K. Facilitated the national and international mineral sector companies in obtaining security
clearance and work visas for their expatriates to enable them to work at mineral
fields/sites for the projects of copper, gold, lead, zinc, barite, iron, marble and granite etc.
in Pakistan.

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.
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
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
The consumption of petroleum products in the country remained around 17.63 million
tons during 2019-20. Indigenous crude oil meets only 16% of total requirements, while
84% 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 Company
(ADNOC).
At present, oil refineries have long term commercial Agreements for import of crude oil
from Saudi Arabia and UAE, PARCO: 60,000 bpd (Saudi Arabia) and 39,000 bpd from
UAE, NRL: 50,000 bpd from Saudi Arabia and 6,000 bpd from (UAE), PRL 29,500 bpd
from UAE, whereas Byco imports crude oil as per their requirements on spot price basis
from Gulf Region.
During 2018-19 and 2019-20 indigenous oil refineries produced 12.3 million tons and 9.8
million tons of POL products, respectively. Oil refineries processed during 2018-19 and
2019-20, 8.9 million tons & 6.98 million tons of imported crude oil and 3.4 million tons
and 2.8 million tons of indigenous crude/condensate, respectively.
Oil Marketing & Refining Policy
a) 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. There will be no minimum Rate of Return guarantee for new
refinery projects.
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. GOP will not give any product off take right guarantee. 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.
b) The Government of Pakistan on 27.04.2018 approved an Incentive Package as under
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 refining
capacity to be set up anywhere in the country:
i. 20 years income tax holiday.

ii. New Refinery Project shall be exempted from the application of the Companies
Profits (Workers’ Participation) Act 1968 and Workers’ Welfare Fund
Ordinance 1971.
iii. Exemption from all duties, taxes, surcharges and levies on import, by the
Refinery Project, its contractors or any other persons, of all machinery, vehicles,
plant and equipment, other materials and spares and consumables for setting up,
operation, maintenance and repair of the Refinery.
iv. Exemption from withholding tax and all other duties, taxes, surcharges, levies
imposed relating to foreign contractors/subcontractors and their personnel in
connection with engineering, procurement, construction, commissioning,
operation, maintenance and repair of the Refinery.
v. Exemption from leviable sales tax and excise duty on supply of locally
manufactured building and construction material, equipment and services for
setting up of Refinery.
vi. New Refinery projects would be given a pricing mechanism which shall be no
less favourable than the prevailing mechanism.
vii. Facilitation in Project infrastructure such as Single Point Mooring (SPM),
Jetties, subsea/land pipelines etc.
viii. Waiver of applicable Development Surcharge on the value of exports under the
EPZA Rules 1981 in case Refinery Project is set up in Export Processing Zone.
ix. In case of oil refinery project at upcountry locations, the imported crude oil
transportation pipelines and its storages will be integrated part of the refinery
project and will also avail all incentives as given above.

The temporary imports by contractors/sub-contractors of all machinery, vehicles, plant and
equipment, other materials and spares in connection with engineering, procurement,
construction, commissioning, operation, maintenance and repair of the Refinery shall be
exempted from all duties, taxes, surcharges and levies on import.
ACHIEVEMENT DURING THE YEAR 2019-20
1) The doubling of demand of refined petroleum products in next 10-12 years will
therefore require addition of oil refineries and corresponding infrastructure for long term
Energy Security of the country. Therefore, Government of Pakistan (GoP) being cognizant of
projected oil refining shortfall in the country, signed a Memorandum of Understanding
(MoU) with Kingdom of Saudi Arabia on 17th February, 2019 to jointly conducting
feasibility study for setting up of a 300,000 bpd (13MTPA) oil refinery plus petrochemical
complex with potential investment by Saudi Aramco (SA), the nominated entity of the
kingdom of Saudi Arabia. Presently Pakistan State Oil (PSO) has been nominated as
Pakistani entity to interact with Saudi Aramco. A Non-Disclosure Agreement (NDA) has
also been signed between PSO and Saudi Aramco. PSO and SA are jointly working on
prefeasibility study of the project.
2) Export Financing Agreement (EFA) between Saudi Fund for Development (SFD) and
Ministry of Finance, Government of Pakistan executed on 17.02.2019 for import of crude
oil/refined petroleum products from Saudi Arabia. The import of crude oil on deferred
payment has commenced by Pak-Arab Refinery Limited (PARCO) and National Refinery
Limited (NRL) from July, 2019. During FY 2019-20, total 12,601,770 barrels of crude oil
imported under SFD (PARCO 6,439,702 barrels, and NRL 6,162,068 barrels).
3) Collection of Revenue:
During the financial year 2019-20, GOP earned revenue on petroleum products as
follows:-
Earning through (Rs. In Billion)
Petroleum Levy 292.00
Discount 5.00
Windfall Levy 13.00
4) Enhancement of Storages Capacity
During the period 2019-20, 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. 2018-19 2019-20 2019-20
1. MS 494,299 674,929 80,630
2. HSD 1,342,251 1,442,457 105,206

2.2.2 Directorate General of Gas
Natural Gas is a clean, efficient, economical and environment friendly

fuel. Its indigenous supplies contribute about 35% 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 2019-20
remained 3,597 MMCFD.
1. SECTORAL GAS CONSUMPTION

The sector-wise gas consumption in Million Cubic Feet per Day (MMCFD)
along-with percentage during 2019-20 is appended below;
Unit: MMCFD
Sectors Natural Gas RLNG Total Percentage
(Indigenous)
Power 669 525 1,194 33%
Domestic 890 890 25%
Commercial 67 7 74 2%
Transport (CNG) 96 31 127 4%
Fertilizer 656 30 686 19%
General Industry 420 206 626 17%
Total 2798 799 3,597 100%
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 2018-19, 2019-20 and its accumulative
status as on 30.06.2020 is given below;
i. SNGPL
FY 2018-19 FY 2019-20 Present Status as on
Sectors
30.06.2020
Domestic 427,768 270,058 6,892,609
Commercial 2,523 1,109 59,931
Industry 120 61 6,052
Total 430,411 271,228 6,958,592
ii. SSGCL
Sectors FY 2018-19 FY 2019-20 Present Status as
on 30.06.2020
Domestic 114,761 96,581 3,082,792
Commercial 1,232 480 24,251
Industrial 94 67 4,352
Total 116,087 97,128 3,111,395
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 2018-19, 2019-20 and its accumulative status as on 30.06.2020 is given
below;
a. SNGPL
(Figures in Km)
Gas Pipeline FY 2018-19 FY 2019-20 Present Status as
Network on 30.06.2020
Transmission 141 120
Network 9,137
Distribution Mains 5,130 4,600 110,436
Services 1,461 1,039 27,871
Total 6,732 5,759 147,444
ii. SSGCL
(Figures in Km)
Gas Pipeline FY 2019-20 Present Status as on
FY 2018-19
Network 30.06.2020
Transmission - 72
Network 4,126
Distribution Mains 476 306 36,670
Services 308 228 10,856
Total 784 606 51,652
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 and Zero Rated Industry Second
General Industry, Fertilizer & Captive Power Third
Cement Sector including its Captive Power Fourth
CNG Sector Fifth
2.2.3 DIRECTORATE GENERAL OF LIQUEFIED GASES (DG LGs)
Sr. No. Items Units Target set for F.Y Target achieved
2019-20 during F.Y 2019-
20
1 LNG Imports Tons 6 Million 8.71 Million
2 LNG Terminal MMCFD 1200 1200
Capacity
3 LPG Production Tons 820,000 754,495

4 LPG Imports Tons 300,000 350,016
2.2.4 DIRECTORATE GENERAL OF PETROLEUM CONCESSIONS (PC)

The Present Government is giving high priority to develop indigenous hydrocarbon
resources to minimize the demand and supply gap. The government has taken various
measures to create an investment friendly environment in the Exploration & Production
(E&P) Sector to attract foreign as well as local investment. The Government is taking serious
steps to accelerate oil and gas exploration and production activities in the country.
2. During the last financial year (i.e. July 2019 – June 2020) following millstones were
achieved:
Licence Granted 5
Leases Granted 5
Wells drilled 58
Exploratory 25
App./Development 33
Discoveries announced 10
Initial flow from these discoveries
Oil (BOPD) 976

Gas (MMCFD) 84
Production added from these discoveries
Oil (BOPD) 103
Gas (MMCFD) 29
Seismic Acquired
2D L.kms) 4,312
3D (Sq.Kms) 1,435

CHAPTER 3
Department of Explosives
(DoE)
http://www.doe.gov.pk/

3.1 Introduction:
Department of explosive is an attached department working under the administrative
control of Ministry of Energy (Petroleum Division). It is a technical-cum-administrative
organization and its main objective is to ensure safety in respect of licensed premises. Head
office is situated in Rawalpindi and 5 circle offices are working in Karachi, Lahore, Multan,
Quetta and Peshawar.
3.2 Statutory Framework:
Explosives Act, 1884 (an act to regulate the manufacture, possession, use, sale,
transport, export and importation of explosives) Rules made there under is
➢ Explosives Rules, 2010
Petroleum Act, 1934 (an act to consolidate and amend the law relating to the
transport, storage, production, refining and blending of petroleum and other inflammable
substances) Rules made there under are:
➢ Petroleum Rules, 1937 (amended 2010)

➢ Carbide of Calcium Rules, 1937
➢ Mineral and Industrial Gases Safety Rules, 2010
3.3 Objectives:
It is the basic mandate and responsibility of department of explosive to ensure the

public safety and security of human life and their properties within the licensed premises,
with respect to manufacturing, transportation, storage, import (except Petroleum), export
selling and use of:
➢ Commercial Explosives
➢ Petroleum Products
➢ Mineral compressed/Liquefied gases like CNG and LPG
➢ Industrial Compressed Gases like Acetylene, Chlorine, Ammonia, Nitrogen and
Oxygen

3.3 Organization Chart:
3.4 Human Resource:
➢ Strength of Head Office, Rawalpindi = 43

➢ Strength of Circle Office, Peshawar = 12
➢ Strength of Circle Office, Lahore = 19
➢ Strength of Circle Office, Multan = 12
➢ Strength of Circle Office, Quetta = 10
➢ Strength of Circle Office, Karachi = 19
Total Strength = 115
3.5 Working & Performance of Department of Explosives:
➢ Licensing of import, transport, storage, production, refining and blending of

petroleum and other inflammable substances and manufacture, possession, use,
sale, transport, export and importation of explosive under the law.
➢ Safety inspections of licensed premises, installations and equipment to ensure
compliance with safety regulations
3.6 Revenue Generation in Last Five Years:
Financial Year Budget Allocated Revenue Earned

2014-15 40.6 Million 181 Million
2015-16 44.8 Million 179.3 Million
2018-19 53.7 Million 228.8 Million (upto May, 2019)

3.7 Efforts made for up gradation and modernization of Department of Explosives
➢ Summary for upward revision of fee structure in respect of Petroleum Rules, 1937
and Mineral and Industrial Gases Safety Rules, 2010 has been approved by
Cabinet Committee for Disposal of Legislative Cases on 21st June, 2019. Now it
is at the stage of Publication in the official gadget for generation of more revenue
in National Exchequer.
➢ Amendment in Petroleum Act, 1934 has been vetted by Law Division and now at
the stage of submission in Parliament for approval.
➢ Up-gradation and re-designation of post of Chief Inspector of Explosive (BS-19)
to Director General (BS-20), and its recruitment rules, has also been published.
➢ Recently, twelve (12) Assistant Directors have been appointed in the Department
of Explosives through FPSC.
➢ Shifting of Head Office from Private Building to Government Building is near to
completion.
Department of Explosives has contributed to the Government Exchequer through its

functions like grant, renewal and amendment of licenses under P.R. 1937, Explosives Rules
2010, Carbide of Calcium Rules 1937, Mineral and Industry Gas Safety Rules 2010.
Performance of DoE from July, 2019 to June, 2020 is given as under:
S# Activities Islamabad Lahore Karachi Multan Peshawar Quetta Total

1. License Granted 196 490 139 440 55 105 1,425
2. License 123 775 6401 3016 397 214 10,926
Renewed
3. License 13 01 01 01 09 00 25
Cancelled
4. License 03 00 00 09 00 00 12
Suspended
5. License Expired 31 40 03 84 14 15 187
6. Inspection 216 3123 1436 145 211 34 5,165
Conducted
7. Vehicle Approved 204 2946 1390 1188 123 00 5,851
8. NOC/Permit 14 246 00 01 00 02 263
9. Fuel Tank Test 00 00 00 00 00 00 00
10. Layout GPL 00 233 00 00 00 12 245
11. PSI Meeting 00 43 30 00 00 00 73
12. Court Attendance 00 77 00 07 09 00 93
13. Revenue Earned 40,232,546 48,396,949 57,071,848 33,120,684 36,796,486 6,740,313 222,358,82
6
14. Expenditure 36,415,788 11,678,955 9,532,000 7,888,228 14,202,119 5,378,208 85,095,298
Incurred
Revenue Targets
2020-21 2021-22 2022-23

350,000,000 350,000,000 350,000,000

CHAPTER 4
GEOLOGICAL SURVEY OF PAKISTAN

(GSP)
http://www.gsp.gov.pk/

4.1 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.
With a balanced, efficient and competitive structure, GSP is 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 immediate needs in the fields of geological mapping and mineral exploration.
4.1.1 FUNCTIONS AND CORE ACTIVITIES
i. Geological mapping and other geoscientific surveys.

ii. Scientific investigations for an accurate understanding of the country's natural
resources and their prudent management.
iii. Geotechnical investigations in connection with the construction of heavy civil
engineering projects.
iv. Environmental and engineering geological studies.
v. Geothermal energy.
vi. Description of onshore and offshore geological framework and understanding its
formation, evolution and resource potential.
vii. Geo-hazard studies associated with earthquakes, volcanic activity, waste disposal,
landslides, subsidence and recommendations for hazard prediction/mitigation.
viii. Provision of scientific support and technical advice for legislative, regulatory and
management decisions of the federal, provincial and local governments.
4.2
]
INSTITUTIONAL STRUCTURES
The GSP was established in 1947 with the creation of Pakistan. The department is
headed by a 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.
.
TABLE 1: REGIONWISE DISTRIBUTION OF GAZETTED AND NON-GAZETTED STAFF OF GSP
S.No. NON-
NAME OF OFFICE GAZETTED TOTAL
GAZETTED
1. GSP Headquarters Office, Quetta. 141 378 519

2. GSP Regional Office, Lahore. 43 97 103
3. GSP Regional Office, Karachi. 54 109 163
4. GSP Regional Office, Islamabad. 26 53 79
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
TABLE 2: CATEGORYWISE DISTRIBUTION OF GAZETTED AND NON-GAZETTED

STAFF OF GSP
S.No CATEGORY NUMBER

.
1. Geologist 156
2. Geophysicists 21
3. Chemist 27
4. Drilling Engineers 25
5. Photogrammetrist 07
6. Other Technical 08
7. Administration and Accounts 09
8. Technical Staff 313
9. Ministerial Staff 132
10. BPS 1-2 Staff 307
TOTAL 1055
4.3 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 2019-20 is Rs. 1015.852 million.
TABLE 3: BUDGET STATISTICS OF GSP (Rs. in million)
FINANCIAL YEAR 2017-18 2018-19 2019-20
REGULAR BUDGET 461.018 582.296 582.00
DEVELOPMENT BUDGET 554.291 463.175 433.852
TOTAL 1015.309 1045.471 1015.852

4.4 ACTIVITIES, PROGRESS AND ACCOMPLISHMENTS
4.4.1 Regional Geological Mapping on 1:50,000 Scale
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 Balochistan and
adjacent areas of Sindh and Punjab on 1:250,000 scale. In 2019-20, the preliminary
geological mapping of approximately 4,480 sq. km area on 1:50,000 scale has been
completed in different parts of the country. The mapping includes coverage of 1920 sq. km.
area in Balochistan; 640 sq. km. in Punjab, 640 sq. km. area in KPK, 640 sq. km. in Northern
Areas / Gilgit Baltistan and 640 sq. km area in Sindh.
In general practice, fieldwork is normally executed in the last quarter of the running
financial year. However, due to pandemic, during this period majority of the fieldwork could
not be executed.
4.4.2 Economic Geology
▪ Evaluation of aggregate resources for construction material in Sulaiman Range,
District DG Khan.
4.4.3 Research Studies
▪ Studies carried out to prepare the “Landslide Susceptibility Map of GahkuchMap ,
District Ghizer, GB.
▪ Geo-Hazard studies carried out in Mirpur area AJK entitled “Geological setting, geo-
hazard assessment, and geotechnical aspects of the Mirpur earthquake 2019”.
▪ Impact of Lead/Zinc Mining on environment and Human health in Duddar, District
Lasbela, Balochistan.
▪ Landslide hazard mapping along the Muzaffarabad Athmuqam Trunk road in Neelum
and Muzaffarabad District, Azad Kashmir, Pakistan.
▪ Study of environmental contaminants in effluents, surface and groundwater, flora and
fauna of Kasur area due to tanning industry.

4.4.4 Geophysical Exploration
i. Magnetic Mapping
About 2637.53 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.
ii. Resistivity Survey

Resistivity Survey carried in Nosham Area under the PSDP “Exploration and
Evaluation of Coal in Nosham and Bahlol Areas, Balochistan”. Under this project 25
vertical electrical sounding were carried out.
Iii. Studies for Hard Rock Aquifers in Islamabad

To explore new resources of groundwater in Islamabad, a detailed fieldwork is planned,
under the annual field program titled “Groundwater Resource Estimation of Hard Rock
Aquifers in Islamabad, Capital Territory". Field work under this project could not be
executed during 2019-20.
4.4.5 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. Analysed 487 samples
by using XRD/DTA, ED-XRF, Scanning Electronic Microscope (SEM) EDS for 1367
estimations in GSP labs at Geoscience Lab, Islamabad, Quetta and Lahore.
4.4.6 Drilling Operations
Geological Survey of Pakistan undertakes drilling operations under PSDP and Annual
Field Programs. During this period, GSP executed the drilling operation under PSDP project
for coal exploration and completed drilling of first borehole (BNCP#01) at Nosham area,
District Barkhan, down to the depth of 297 meters.
4.4.7 International Collaborations
Geochemical Mapping: Pak-Sino Geological Surveys
A collaborative project between Geological Survey of Pakistan (GSP) and China
Geological Survey (CGS) was initiated during the 2015-16. To geochemically map the
country 4,980 stream sediment samples were collected from 360,000 sq.km area on 1:
1,000,000 scale from Punjab, Sindh, KPK, Balochistan, AJK and Gilgit-Baltistan, in previous
years.

4.4.8 Internships
Geological Survey of Pakistan is the main stakeholder in mineral exploration and is
committed towards professional excellence. At present the internship programme has been
suspended due to COVID-19.
4.4.9 Publications
• Raw Material Investigation and Evaluation of Limestone Resources for Cement
Industry in Toposheet No 35 0/3 Lasbela and Malir Districts, Balochistan and Sindh
Provinces. (Information Release No. 1032)
• Morphology and Petrography of Columnar Jointed Basalts in Bela Ophiolites,
Balochistan. (Information Release No. 1033).
4.5 ONGOING PUBLIC SECTOR DEVELOPMENT PROGRAMMES (PSDP)
4.5.1. “Appraisal of Newly Discovered Coal Resources of Badin Coalfield and its
adjoining areas of Southern Sindh” (2014-20)
A large coalfield was identified by Geological Survey of Pakistan in Badin area as a result of
reconnaissance exploratory drilling programme in the past. For complete evaluation of this
region, a PC-II scheme was purposed by GSP to outline subsurface geology, analysis of coal
samples and reserve estimation for prudent use of this resource by public and private
entrepreneurs. The total cost of this project was expected to be 170.663 million. The
exploration work under this project commenced in 2013 and continued till 30-06-2020.
Under this project; fifteen boreholes with cumulative depth of 5877.2 meters have been
completed at various location in Badin Mirpurkhas and Sanghar Districts. Coal seams
encountered in all drill holes at various depths. Geological logging of boreholes and analysis
of core samples have been completed. Digitization of borehole data and comprehensive
technical report is in process.
4.5.2. “Acquisition of Four Drilling Rigs with Accessories for the Geological
Survey of Pakistan” (2015-20)
To purchase new drilling rigs as a replacement for old drilling rigs and acquire
modern technologies in the field of drilling. Two, new, 275 HP, Hydraulic, Truck Mounted
Multipurpose Drilling Rigs with drilling capacities of 1300-2000 meters HQ and 2000-3000
meters NQ have been purchased on FOR basis. Preparation of technical specification and
prequalification tenders for purchase of 2 more drilling rigs with accessories with strict
adherence to PPRA rules has been completed and published in the print media. The
prequalification tenders for procurement of further two rigs is in progress.

4.5.3. “Exploration and Evaluation of Metallic Minerals in Uthal and Bela Area,
District Lasbela Balochistan” (2016-20)
The studies under this project were focused on metallic minerals like lead, zinc,
copper, chromite, iron etc. in the unexplored areas of Lasbela District, Balochistan. The area
falls in Bela Ophiolites, which portrays one of the largest ophiolite belt in Pakistan extending
from Gadani in the South to Khuzdar in the North, covering an area of about 4500 sq km.
Several Potential mineral localities occur within these ophiolites and underlying Mesozoic
sediments.
The exploration work under this project started in 2016 and continued till 30-06-2020.
Detailed geological, geophysical & geochemical studies have been executed at several
locations. Stream sediments from this region have also been analyzed at Akita University,
Japan for rare earth elements, base metal, and other strategic metals. Preliminary results show
that the project area has good potential for titanium, nickel, copper, chromium and barium
etc.
4.5.4. “Exploration and Evaluation of Coal in Nosham and Bahlol Areas,

Balochistan” (2017-20)
This project was initial to prove the presence of coal, establish its grade and make a
preliminary assessment of reserves through large scale mapping, exploratory drilling and
collection of representative samples for chemical analyses and petrographic studies in
Nosham and Bahlol areas, Balochistan. Geological fieldwork including measurement of
Stratigraphic sections was carried out in previous years. Compilation of field data, analysis
and integration of data to prepare required geological map is in progress. Exploratory drilling
at one site at Nosham area, District Barkhan has been completed. The drilling operation at
this site is executed down to depth of 297 meters. Geological logging pertaining to this drill
hole also undertaken. Geophysical studies to determine subsurface geology and evaluate coal
seams has been conducted.
4.6 FUTURE PLANS

4.6.1 Major Activities Planned To Be Undertaken During FY 2020-23
i. Regular Field Projects 2020-23

i. Regional Geological Mapping.
ii. Mineral Exploration.
iii. Geophysical Surveys/Exploration
iv. Geochemical Investigation.
v. Engineering Geology/Geo-hazard studies.
ii. Development Projects 2020-23
i. Acquisition of Four Drilling Rigs with Accessories for the Geological Survey of
Pakistan. Approved by CDWP: 19-11-2009. (Total cost: 665.807 Rs. in million)
ii. Exploration and Evaluation of Coal in Nosham and Bahlol Areas, Balochistan. (2017-
2020). Approved by DDWP: 15-08-2017. (Total Cost: 42.318 Rs. in million).
iii. Geological Mapping of 50 Toposheets out of 354 Unmapped Toposheets of Outcrop
Area of Balochistan Province (2020-2023) (Total Cost: 127.595 Rs. in million).
iv. Establishment and Strengthening of Research Laboratories at Geological Survey of
Pakistan, Regional office Peshawar (2020-2022) (Total Cost: 96.168 Rs. in million).

CHAPTER 5
HYDROCARBON DEVELOPMENT INSTITUTE OF PAKISTAN

HDIP

5.1 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.
I. Institutional Structure
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.
Board of Governors
Chairman,
1. Minister for Energy,
Petroleum Division, Islamabad.
Secretary,
2. Ministry of Energy,
Director General/Chief Executive,
3.
Hydrocarbon Development Institute of Pakistan, Islamabad,
Financial Advisor,
4. Ministry of Energy,
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.
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 302 employees including 58 Scientists and Engineers.
The achievements of HDIP during the year 2019-20 are as under:
5.2. UPSTREAM ACTIVITIES-OIL & GAS EXPLORATION

A. Consultancy work
1. Contracts/Bids:
Geological and Geochemical analysis of Outcrop samples from M/s Mari Petroleum
Company Ltd.
2. Samples Analyzed for Geochemical Parameters:
• 452 samples have been analyzed for geochemical parameters of Crude Oil, Rock,
Water, Formation Water, Solid Waste , Fuel wood and coal of different Universities /
Companies.
• Except from this 188 samples have been analyzed for geological and reservoir
characteristics during the reporting period from different companies / Universities.
3. Future Plans:
Study on Hydrocarbon Habitat of Pakistan
4. Clients Served:
The Institute offers services to the following Companies/Organizations:
a. Mari Petroleum Company Ltd.

b. National Centre of Excellence Geology (NCEG), Peshawar University,
Peshawar.
c. UET, Taxila.
d. Rafhan Maiz Products, Faisalabad
e. Shell Pvt. Ltd.
f. Oil and Gas Development Company Ltd.
g. University of Malaya, Malaysia.
h. Sewas Pvt Ltd.
i. Nec Pvt Ltd.
j. Pak Green Pvt. Ltd.
k. Bahria University , Islamabad
l. Fauji Fertilizer Company Pvt. Ltd.
m. Punjab University, Lahore.
n. PMDC
B. ORGANIZATION OF WELL CORE CUTTINGS IN PAKISTAN PETROLEUM

CORE HOUSE (PETCORE)

During the reported period Pakistan Petroleum Core house (PETCORE) received core of 02
wells and drill cutting samples of 95 wells. Samples of around 66 wells and core of 24 wells have
been re-boxed and archived in core storage hall and their information have been added to PETCORE
database. PSDP project Expansion and Up-gradation of Pakistan Petroleum Core house (PETCORE)
for its Sustainable Operations to Facilitate Oil and Gas Exploration Research in Pakistan” was
included in PSDP for CFY 2019-20 with the budgetary allocation of Rs. 70.00 million. The execution
of the project was started with the initiation of hiring of technical man power and procurement of
consultant for design and supervisor of construction work of new PETCORE building. In this regard
applications were received from potential candidates and scrutiny was completed. M/S NESPAK
(Pvt.) Ltd. was hired on competitive basis for design and supervision of construction work of new
PETCORE building. They have submitted concept design for new building which has been approved,
detailed design drawings are awaited.
5.3 DOWNSTREAM ACTIVITIES–“PETROLEUM TESTING & QUALITY CONTROL”
HDIP’s Downstream (Petroleum Testing and Research Facilities)

HDIP’s main petroleum analytical labs are located at Karachi and Islamabad together with
smaller units at Peshawar, Lahore, Multan, and Quetta, cover a range of analytical facilities for crude
oil and petroleum products. These labs provide standard analytical services to the national oil and gas
industry and work for the Government as authorized labs for quality certification.
HDIP plays a major role for supply of quality POL products (PMG/HSD)/Lubricants etc) in
the country and in this regard HDIP carries out numerous inspections on behalf of OGRA at retail
outlets, Blending/Reclamation Plants, Refineries, Depots etc.
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
Division) 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 a project titled
“Upgradation of POL testing facilities of HDIP at Islamabad, Lahore,
Multan, Peshawar, Quetta and ISO certification of Petroleum Testing
Laboratory at Islamabad” has been approved by CDWP held on 06-05-
2019 at a revised cost of Rs. 303.698 millions.
i) Lab up-gradation is in progress and some equipment for Euro-V
analysis has been purchased and installed at PTRL Islamabad.
j) Another project titled “Strengthening up-gradation and ISO
Certification of Karachi Laboratories Complex (KLC) at HDIP
Operations Office, Karachi” has also been approved by CDWP held on
03-06-2020 at a cost of Rs. 440.812 millions. Further work is in
progress.
Total Samples Analyzed by HDIP Petroleum Testing Labs during the review periods are
11,520 resulting in revenue earning of Rs. 310.937 Millions.
5.4 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 1987, elevating Pakistan to
the highest level of global leader. HDIP has also initiated 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.
a) CNG Inspection Wing
During the review period, altogether 322 CNG Safety Inspections (including Annual
Inspections, Re-Inspections, Pre-Commissioning and Accident Inspections) of different CNG Stations
were performed, which resulted in revenue earning of Rs. 7.43 Millions.
b) 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. 145.548 Millions.
c) CNG Cylinder Testing Laboratories Karachi, Islamabad, Lahore, Peshawar,

Quetta and outsourced Laboratories.

During the review period, altogether 27,995 CNG Cylinders from the different vehicles and
from different CNG Stations were tested in which 3,952 were Vehicle Cylinders and 15,019 were
Storage Cylinders of different CNG Stations in Karachi, Islamabad, Lahore, Peshawar and Quetta.
Revenue generated from CTLs Islamabad, Karachi, Lahore, Peshawar and Quetta and HDIP
outsourced CTS was Rs. 57.809 Millions.
d) Trainings:
CNG Operations conducted training courses in different professional categories i.e.
Compressor Operator, Refueling Attendant and CNG Conversion. 27 technicians from private sector
have completed trainings under this programme.
5.5 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, national and international
companies/organizations, universities, research organizations and Gas Sector Companies etc.
Pakistan Energy Yearbook 2017, 2018 and Pakistan Journal of Hydrocarbon Research,
Volume 24 have been published by this Institute. The publication of Pakistan Energy Yearbook 2019
and Pakistan Journal of Hydrocarbon Research Volume 25 & 26 are in process.
5.6 TECHNICAL ASSISTANCE TO THE UNIVERSITIES
HDIP provided technical assistance and research support to Universities of Karachi,

Baluchistan, Punjab, Azad-Jammu and Kashmir, Peshawar, Quaid-e-Azam and Bahria etc.
and also provided training to the students.
5.7 CONCLUSION
HDIP is a scientific and technical organization/institute of the Ministry of Energy (Petroleum
Division) in the oil & gas sector. At the same time it is third party inspector of OGRA for
Petroleum/CNG testing/inspection and facilitates private sector by providing professional
guidance and advice. Being a public sector entity, it meets about 86% of its budget from its
own resources and generates substantial amount in the shape of taxes on its services.
.

CHAPTER 6
OIL AND GAS DEVELOPMENT COMPANY LIMITED

6.1 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 converted from a statutory Corporation into a Public Limited Company
w.e.f October 23, 1997. Currently, the Government of Pakistan is holding 74.98% of the total
equity in the Company. OGDCL is responsible to plan, promote, organize and implement
programs for the exploration and development of oil and gas resources.
6.2 Exploration:
OGDCL holds the largest share of exploration acreage in the Country with 44, own
and operated joint venture (JV) Exploration licenses covering an area of 79,994 Sq. Km. Out
of the 44 blocks, 20 blocks (100% working interest) while 24 blocks are in joint venture. In
addition, OGDCL has considerable interest in 07 non-operated blocks with other companies.
6.3 Seismic:
OGDCL during FY-2019-20 acquired 3,407 L.Kms. During the same period
Company processed/reprocessed 5,582 L. Kms 2D & 4,977 Sq. Kms 3D seismic data of
various blocks.
6.4 Wells:
OGDCL during FY-2019-20 spudded a total of 25 wells which consisted of 14
exploratory wells, 01 appraisals well, 05 development wells and 05 re-entry wells.
6.5 Discoveries:
OGDCL made 05 discoveries during FY-2019-20 namely Pandhi-1 (Bitrisim EL),
Chanda-5 (Wargal) (Chanda D&PL), Togh-1 (Lumshiwal) (Kohat EL), Metlo-1 (Ranipur
EL) and Togh-1 (Hangu) (Kohat EL).
6.6 Reserves:
The Company has the largest hydrocarbon reserves in Pakistan. Out of the total
country’s oil and gas reserves, the Company holds 44% oil and 37% of gas reserves as of 30th
June, 2020 (Source: PPIs).
6.7 Production:
OGDCL is making out all efforts to maintain and enhance production level by
following best industry practices and applying the latest techniques with efforts to keep
production loss time at a minimum. The on-going projects are also being undertaken/
completed on a seamless track to meet the growing energy demand of the country. It has
above 50 producing fields all over Pakistan. Its average net production for the FY-2019-20 is
at around 36,073 bopd of oil and 893 MMcfd of gas, 739 MTD of LPG and 54 MTD of
Sulphur.
6.8 Financial:
OGDCL continues to deliver robust financial results for the FY-2019-20 as its Sales
Revenue amounted to Rs. 244.856 billion with Profit after Tax at Rs. 100.081 billion
translating into Earnings per Share of Rs 23.27.

6.9 Future Outlook:
OGDCL, although operating on a level playing field, still enjoys an edge over other
oil companies operating in Pakistan due to its largest technical skill base in the industry, and
a strong equipment base, coupled with knowledge and experience of exploring in varied
terrains of all four provinces of Pakistan. However, its greatest challenge to date, has been to
provide impetus to the Government’s efforts to attain self-reliance in energy.
Looking ahead, OGDCL on account of financial strength and determination to

enhance country’s energy security will spare no effort to continue the intensified exploratory
activities and capitalize on new growth opportunities while ensuring that health and safety of
people and fulfilling social obligations remain a business priority. The Company believes
that the extensive exploration program including fast track seismic data acquisition, data
processing/interpretation and active drilling campaigns not only offers the potential for near
term value creation but will also provide a platform to embark upon new tasks and
opportunities.

CHAPTER 7
www.ppl.com.pk
PAKISTAN PETROLEUM LIMITED

(PPL)

7.1 INTRODUCTION:
Pakistan Petroleum Limited (PPL) is a pioneer in the natural gas industry in Pakistan and has
been a frontline player in the exploration, development, and production of oil and natural gas
resources since early 1950s. The Company’s current exploration and production portfolio is spread
across Pakistan with an international presence in Iraq and Yemen through its subsidiaries. PPL also
holds mineral exploration and development rights in Balochistan through Bolan Mining Enterprises
(BME), a 50:50 joint operation between PPL and Government of Balochistan.
7.2 VISION:
To achieve energy self-sufficiency for Pakistan by becoming the most successful and efficient
discoverer and producer of oil and gas.
7.3 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.
7.4 MAJOR ACHIEVEMENTS OF THE YEAR (2019-20)
2019-20 has been a good year for PPL with the following major achievements:
• PPL’s work program is one of the most extensive in the industry, as the Company drilled 5
exploration and 14 development wells in operated and partner operated areas despite the
COVID-19 pandemic.
• Two discoveries were made during 2019-20, Morgandh X-1 (Margand Block) in operated
area, in high hills of Kalat plateau, which is the westernmost discovery of Pakistan in the
deeper part of frontier areas of Balochistan and Bitro (Latif Block) in partner operated area.
• Production was maintained at around 0.9 Bcfde in 2019-20 despite low customer offtakes
from GENCO-II as well as the curtailed oil demand from refineries during pandemic.
• Robust processes and technologies were swiftly deployed to maintain the deliverability of
production from fields along-with enabling office-based staff to ‘Work From Home’ during
the pandemic.
• The Company successfully led a consortium comprising of PPL, OGDCL, MPCL and GHPL
and participated in the Abu Dhabi bid round 2019. Results of the bid round are awaited.
• Production commenced from Dhok Sultan, Fazal (Hala Block), Unarpur (Kotri North Block)
and Bitro (Latif Block) discoveries.
• Farm-out agreements were executed in Block-8 (Iraq), Musa Khel and Punjab blocks, while
farm-in agreement was executed in ShakarGanj West block. The farm-ins/farm-outs are
pending regulatory approvals.
• Debottlenecking of SML Pipeline Network was successfully completed and commissioned at
Sui in June 2020 achieving around 10 MMscfd gain in production.
• Adhi South-3 well was completed in a record time of 52 days realizing considerable savings.
• In-house 3D reservoir simulation studies were completed for Shahdadpur, Zafir, Shahdadpur
West and Kandhkot fields.
• SAP SuccessFactors for performance management was implemented in a record time of 6
weeks.
• BME commenced commercial dispatch of iron ore from June 2020.

• PPL received 15th consecutive award from the Pakistan Centre for Philanthropy for being the
top contributors in terms of volume of donations.

7.5. OPERATIONAL OVERVIEW
7.5.1 OPERATIONS:
The Company currently operates producing fields at Sui, Kandhkot, Adhi, Gambat South, Hala,
Mazarani, Chachar, and Dhok Sultan. In addition, the Company has working interests in 12 partner-
operated producing assets. The Company is playing its role in meeting the country’s energy
requirements by focusing on production enhancement through use of advanced technology and
management skills. Furthermore, the Company has an operated interest in BME, which is a joint
operation between the Company and the Government of Balochistan.
PPL’s average production of gas, liquids and LPG have declined by 11%, 12% & 8% respectively as
compared to the previous year. The primary reason for decrease in production is the substantially
lower offtakes by GENCO-II in Kandhkot Gas Field coupled with lower offtakes by refineries due to
Covid-19 pandemic and natural decline in mature fields. 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 ventures
averaged at about ~775 MMscfd of gas, 14,049 barrels per day of Oil / NGL/ Condensate and 293
metric tonnes per day of LPG.
The Company’s major clients include Sui Southern Gas Company Limited, Sui Northern Gas
Pipelines Limited, Central Power Generation Company Limited and Attock Refinery Limited.
Field-wise key initiatives taken by PPL during the year are given below:
7.5.2 OPERATED FIELDS:
i. SUI Gas field:

• Average production from Sui field was 369 MMscfd. The field is undergoing natural decline;
however, optimization efforts have reduced the decline to 4.2% in 2019-20 viz-a-viz 5.2% in
2018-19.
• Two development wells were drilled and completed: Sui-106(U) and Sui-110(U), contributing
around 11 MMscfd into the production network of the Sui field.
• Staking, land acquisition and site construction activities have been completed for a new
development well Sui-111(U). This well is expected to be spud and completed in the year
2020-21.
• Based on the successful drilling and subsequent well/G&G data of Sui-108(P), Pab reservoir
model was updated in-house which helped in finalizing the location for new development well
Sui-112(P). This well has been spud in July 2020 and is being drilled using PPL’s own rig.
• Sui-107(U), which was spud during the last quarter of 2018-19, was commissioned during the
year contributing around 7.1 MMscfd of gas.
• Debottlenecking of SML Pipeline Network was successfully completed in June 2020
achieving around 10 MMscfd gain in production.

• Maintenance, upgradation, and enhancement of plant reliability activities were undertaken at
both Purification Plant and Sui Field Gas Compression Station, including major overhaul of
three compressors, two gas turbines, one purification bank and other units.
• The grant of Sui D&PL is awaited. In the interim, the GoP through periodic notifications has
allowed the Company to continue production from Sui gas field, the most recent of which
allowed the Company to continue production for another six months with effect from May 31,
2020.
ii. KANDHKOT / CHACHAR Gas fields:

• The average production rate for the year was 142 MMscfd as compared to 210 MMscfd in
2018-19 due to continuous lower offtakes by GENCO-II.
• Development well KDT-47(U) was completed in September 2019.
• In-house Kandhkot reservoir simulation study was completed during the year.
• Major overhaul of Turbo Compressor TUCO-A was successfully completed.
iii. Adhi / Dhok Sultan:
• Production from Adhi Field declined primarily due to natural depletion.
• Four development wells Adhi-33(T/K), Adhi-34(T/K), Adhi South-4 & Adhi South-3 were
completed and commissioned. Adhi-South-3 was completed in a record time of 52 days,
resulting in considerable saving in drilling cost.
• Adhi South-2 was spud-in during Q4 of the year and was completed & commissioned
subsequent to the year end.
• In-house Integrated Reservoir Simulation Study was commenced in September 2019. Work on
Petrophysical interpretation, Seismic interpretation & Structural Model was completed
whereas work on Static model is in progress.
• Nodal Compression Project has been successfully commissioned. The Project is providing
pressure boost to 20 wells improving well deliverability.
• Oil and Gas production from Dhok Sultan EWT commenced in November 2019 at the rate of
~ 600 bbl/day and 1 MMscfd gas. The gas was sold through a virtual gas pipeline. However,
the production was stopped in April 2020 due to gas offtake issues.
• Dhok Sultan’s appraisal and development activities are underway at a fast pace. An appraisal
well DS-02 is being drilled.
iv. GAMBAT SOUTH, HALA and MAZARANI Gas fields:
• Post termination of Gambat South GPF-III EPCC contract, the Company is making all efforts
to optimize production from the field, to complete the project through alternate means.
• Gambat South GPF IV Phase-I production was further optimised by 15 MMscfd, whereas the
production from Phase-II was delayed due to COVID-19. Recently, the work has resumed on
Phase-II and it is expected to be completed within (2Q 2020-21) to give an additional flow of
30 MMscfd.
• Construction of 19 km Nasr X-1 feeder line and Phase-I of Hadaf X-1 feeder line was
completed. Hadaf X-1 has been tied-in to GPF-IV plant through Nasr X-1 feeder line and pre-
commissioning activities have been successfully carried out. It will be commissioned after the
approval of D&PL by the regulator.
• Development well Sharf-3 well site construction is underway and the well spud is expected in
first half of 2020-21.
• D&PL applications for Kabir and Hadaf Fields (Gambat South) have been submitted for
approval, while D&PL of Bashar X-1 ST (Hala) has been approved by the regulator.
• Fazl X-1 (Hala) was commissioned and is flowing at 5 MMscfd taking the overall Hala plant
production to 20 MMscfd.
• Interim extension of Mazarani D&PL was granted till May 31, 2020 on existing terms &
conditions and sales gas price. Approval for 2-year re-grant is still awaited.
• Efforts are underway to get the approval of 20 MW Hatim Power Project from CPPA and
NTDC.
7.5.3 PARTNER OPERATED AREAS
i. NASHPA Block (operated by OGDCL Pakistan):

• Development wells Nashpa-9 & Mela-7 were completed as oil & gas producers whereas
appraisal well Nashpa-5A was plugged and abandoned due to discouraging results. Moreover,
testing is in progress in development well Nashpa-10.
• Installation works on Nashpa Front End Compression (FEC) is in progress.
• Laying of flow line from Mela to Nashpa (for extraction of LPG) and commissioning of Mela
FEC were completed.
Performance Test of LPG Plant was completed.
ii. KIRTHAR Block (operated by POGC Pakistan):
• Development well Rizq-3 was completed as gas producer and currently producing 7 MMscfd,
whereas frac job was completed in development well Rehman-7 and testing is planned.
• Installation of 2nd Dehydration train has been completed along with sales line capacity
augmentation.
iii. QADIRPUR Gas field (operated by OGDCL):

• Development well QP HRL-15 was successfully completed as gas producer.
• Procurement for Front End Compression (FEC) revamp project is in progress.
iv. Miano Field (operated by UEP Beta)
Development well Miano-25 has been completed and was tested at 8 MMscfd.
v. LATIF Gas Field (operated by UEP Beta)
• Development wells Latif-18 and 23 were successfully completed as gas producers.
vi. BOLAN MINING ENTERPRISES:

• The total sales of baryte by BME stood at 186,320 tons.
• Enhancement of baryte powder sales is planned through the installation of a new grinding mill
by Q3 2020-21.
• Commercial dispatch of Iron Ore from Nokkundi commenced in June 2020. Detailed mine
development plan with value addition through mineral processing is underway.
• In line with the Company’s diversification strategy, Baryte Lead Zinc (BLZ) project has been
identified as a growth prospect. Based on feasibility study of BLZ project, an application for

grant of Mining Lease (ML) has been submitted. Planning activities for mine development are
underway.  
7.6 EXPLORATION
PPL, together with its subsidiaries, has a portfolio of 48 exploration blocks, of which 28 are PPL-
operated, including Block-8 in Iraq, and 20 are partner-operated including three offshore blocks in
Pakistan and one onshore block in Yemen.
The Company holds a diversified exploration portfolio with a mix of High-Risk, High-Reward and
Low-Risk, Low/Medium-Reward assets. Because of the maturity of the existing blocks, the prospect
inventory is diminishing in size and quality. Efforts are at hand to use the unconventional seismic
technology to map subtle hydrocarbon traps. Additionally, the Company is making efforts to
strengthen its portfolio by acquiring a balanced mix of new blocks in the bid round and through farm-
ins
Block wise details of exploratory work program delivered during the year in the PPL’s operated
blocks is provided in Section-6.11.
7.7 RESERVES MANAGEMENT:
Based on hydrocarbon reserves revisions, additions and production for the year, the Company’s
Proven Reserves Replenishment Ratio (RRR) stands at ~85 percent, indicating that around 85% of
total production for the year has been replaced in the Company’s reserves base. The additions have
come due to discoveries in Benari X-1 (Shahbandar), Yasar X-1 (Kotri), Bitro-1 (Latif) and Unarpur-
1 (Kotri North), while the revisions have primarily come from Shahdadpur and Shahdadpur West
(Gambat South fields), Makori East and Maramzai (Tal fields).
Addition of reserves from Morgandh discovery will be incorporated after obtaining additional data
from on-going appraisal activities.

7.8 FINANCIAL OVERVIEW:
7.8.1 SALES REVENUE:
Sales revenue has declined by Rs 6,297 million during the current year as compared to the
corresponding year. The decrease is due to negative volume variance of Rs 13,941 million, partially
offset by positive variance on account of price amounting to Rs 7,644 million. The primary reason for
negative volume variance is due to the lower offtakes by GENCO-II in Kandhkot Gas Field coupled
with lower offtakes by refineries due to Covid-19 and natural decline in mature fields. Positive price
variance is due to devaluation of Pak rupee against US dollar (average exchange rate for the current
year was PKR 158.45 / US$ as compared to PKR 136.37 / US$ during the corresponding year),
partially offset by drop in average international crude oil prices to US$ 51.1 / bbl during the current
year versus US$ 68.3 / bbl during the corresponding year.

7.9 QUALITY, HEALTH, SAFETY AND ENVIRONMENT (QHSE)
The key QHSE focus areas are as follows:
7.9.1 QHSE Automation
The QHSE Audit & Inspection module was launched during the year. This automation
transformed existing paper formats into a digitized form that can be tracked and analyzed throughout
the workflow and supports continual improvement with many advanced features. Next year, the
Sustainability Reporting and Management of Change modules are targeted for automation.
7.9.2 Road Transport Safety

• Live Monitoring of vehicles and Automatic Head Count System was implemented at Gambat
South Field.
• Journey Risk Management forms were introduced and implemented specially in purview of
COVID-19 road movement.
• Stakeholders were engaged at Head Office and Islamabad office to uplift Road Safety practices.
7.9.3 Occupational Health
• All action items related to PPL Fields arising from 3rd Party Occupational Health Gap Analysis
were closed.
• First Aid Guide Books (Urdu Version) were distributed to all NMPT staff across PPL.

7.9.4 Customer Satisfaction & QHSE Certifications
• ISO Certification Audit services were rotated to a new contractor and is expected to provide a
fresh insight to PPL management in its improvement journey.
• Several PPL operated fields and departments were successfully upgraded to the latest 2015
version of QHSE international certifications i.e. ISO 9001 (Quality), 14001Environment) and
OHSAS 18001 (Occupational Health & Safety).
• Remaining fields and departments are scheduled for transition as per Annual Surveillance Audit
Plans in the coming years.
7.9.5 Process Safety
Leadership & Culture Initiatives
• Celebrated Safety Weeks at Head Office, Adhi, Kandhkot, Gambat South & Sui to enrich
knowledge of staff on QHSE/process safety matters.
• Engagement and conversation sessions were completed at Kandhkot and Gambat South fields.
• Next year focus is to develop and roll out a QHSE Accountability Framework at PPL for
strengthening the culture where everyone bears the responsibility and accountability to adhere to
QHSE norms.
Asset / Mechanical Integrity

• 3D fire & gas mapping study was completed at Sui Field Gas Compressor Station.
• Pre-Startup Safety Review (PSSR) held at Dhok Sultan X-1 EWT operations to ensure safe startup
• PHA, MOC, PSSR & Well Testing safety requirements sessions were conducted at Gambat South
field.
• Stakeholders engagement was initiated to introduce new safety studies at PPL’s Plants including
Hazardous Area Classification and Safety Integrity Level.
7.9.6 Environmental Footprint / Legal Compliance

• NOCs were acquired from respective EPAs for drilling wells Khipro East X-1, Margand X-1,
South Kharan X-1 and seismic surveys in Shah Bander & Musakhel.
• Independent Monitoring Consultants were deployed in seismic, drilling and construction activities
for effective monitoring and reporting of compliance against agreed project specific Environment
Management Plans.
• 10,000 native saplings were provided to EPA Attock under Government’s initiative of “Clean &
Green Pakistan”.
• A widespread tree plantation campaign is planned to be undertaken in the Project areas in the
following years.
• Various legal compliance audits were completed during the year.
• Community complaints on spills/leakages at Adhi Field, Margand and Dhok Sultan were
addressed through environmental monitoring, reporting and meetings / interactions with
government authorities.
7.9.7 Contractor’s Safety

Contractor’s Safety is one of the high-risk area in oil & gas industry which is recognized as
corporate risk at PPL as well. Accordingly, following key measures were undertaken in general for
seismic, drilling & projects contractors:
• Pre-Mobilization workshops
• Pre-spud inspections
• Independent monitoring
• Contractors’ trainings
• Regular meetings with contractor’s management on outstanding QHSE issues
• Behavioural intervention and modification program at drilling rigs
• Safety membership and safety captain programs
• HSE Experience sharing with JV partners
• Distribution of Basic First Aid guide
7.10. CORPORATE SOCIAL RESPONSIBILITY:

During the year under review, the Company continued to support schemes at its producing and
exploration areas. These included 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 of educational, healthcare and road
infra-structure, initiation of potable water supply schemes, provision of free gas etc.
The major CSR programs of PPL are mentioned in the following paragraphs:
7.10.1 Education
The Company believes in the strength of formal education to empower communities. The
Company has been building on school infrastructure and providing furniture etc. to
Government schools at its operated areas. In addition, the following activities were
undertaken during the year:
• Sui Model School & Girls College, Dera Bugti, Balochistan is being operated benefitting over
3,000 local students including over 100 female students at the Girls College.
• Financial support was provided to the Virtual University campus at Sui town.
• Support was provided to run three PPL-TCF primary and one secondary schools at Kandhkot,
benefitting more than 600 students.
• Operations were supported at the 2 Government schools adopted in District Kambar-
Shahdadkot.
• Transport was provided to local students of FC School & College, FG Public High School and
Taleem Foundation School at Sui town.
Furthermore, PPL is operating five scholarship schemes for deserving students from its
producing districts including Balochistan. The summary is as follows:
• 145 students were awarded scholarships to pursue higher professional level education in the
areas of education, medicine, management, IT and engineering.
• 135 students belonging to Balochistan were awarded scholarship to continue their education
from classes 9 to 12 under a four-year education program.
• 100 scholarships were awarded to local students of Sui town to pursue their education at FC
Public School and College,Sui.
• A female alumnus of the Sui Model School & Girls College was awarded a scholarship
enabling her to study medicine.
• 30 physically impaired children of District Sanghar and Matiari were awarded scholarships to
pursue primary and secondary level education at the Deaf Reach School at Rashidabad,
operated by the Family Education Services Foundation (FESF).
• PPL Chair in Petroleum Engineering at Mehran University of Engineering and Technology,
Jamshoro remained functional, and continued to make efforts to achieve its objectives.

7.10.2 Skill Development
• In order to provide skills development to the unemployed youth, the Company has partnered
with the Hunar Foundation, and awarded scholarships to 39 students, to acquire a technical
diploma recognised by the City & Guilds Skill Development Institute, UK.
• The Vocational Training Center at Adhi has become financially sustainable. Production of
marketable items i.e. hand embroider dresses, stitching of dresses, hand knitted sweaters and
bags have been commenced at the center. Over 750 females are now enabled to generate
income for their livelihood empowering women.
• Over 100 men and women were trained at Vocational Training Institute, Sui in different trades
like tailors, graphic designing, computer repairing, textile, cooking, etc enabling them to earn
their livelihood.
7.10.3 HEALTHCARE
• Over 8,000 patients of Sui Town were provided free of cost consultation, treatment and
medicine this year at the Sui Field Hospital.
• Mobile dispensaries operated at Mazarani, Kandhkot, Gambat South and Adhi jointly
benefitted over 89,000 patients.
• Six surgical eye camps were organized for the population residing in the surrounding areas of
Sui, Kandhkot, Adhi, Mazarani and Shahdadpur that benefitted over 20,000 patients.
• PPL established the Ophthalmic Operation Theatre at Dr. Ruth Pfau Health Centre (DRPHC),
Kandhkot. Over 8,000 patients were provided free-of-cost treatment for leprosy, blindness and
tuberculosis at the center.
7.10.4 Free Gas and Water Supply

The Company continued to provide free gas and water to the residents of Sui town, to enhance
the quality of life of the local residents. The Company also continued to supply potable water to locals
at Ghaibi Dero and operated water filtration plant at Sunjar Khan Junejo, District Sanghar. During the
year, the Company completed solar powered water supply schemes at Nichara, District Kalat and
village Haji Kareem Bux Brohi, District Lasbela and drilled water bore at village Muneeb Langari at
District Kalat. Besides, the Company also completed installation of RO plant at village Fateh
Muhammad Punjabi at District Naushahro Feroz and village Qasim Panhwar at District Hyderabad.
7.10.5 Infrastructure Development

The Company contributed in infrastructure development with respect to the roads and bridges
in District Kashmore and Sanghar, benefitting the communities by connecting farmers with the
nearest markets.

7.11 EXPLORATION BLOCKS
Company Operated Frontier Blocks:

Company Operated North blocks:

Company Operated South blocks:

CHAPTER 8
Government Holdings (Private) Limited

8.1 INTRODUCTION
Government Holdings (Private) Limited (GHPL) manages Government of Pakistan’s working
interest in upstream petroleum Joint Ventures. GHPL was established in the year 2000 and is 100% owned
by the Government of Pakistan. Being working interest owner in multiple on-shore Joint Ventures on
behalf of the GoP. GHPL performs in-depth analysis on the available geological, geophysical, wells,
surface facilities, production data, etc and subsequently approves the work programs and budgets in
various joint ventures. It pay its share of expenditure for the work done against the approved work
program. GHPL also monitors progress work program progress through field visits, technical, financial
and management committee meetings and workshops with joint venture partners. In Onshore, GHPL
manages its interest as non-operated partner and in Offshore, GHPL acts as licensee.
GHPL is a non-operating partner with local and foreign oil and gas exploration and production companies
in Pakistan, which includes OGDCL, MPCL, POL, PEL, PPL, Al-Haj Enterprises, UEPL, OPPL,
Hycarbex, Tallahasse Resources, MOL and KUFPEC.
GHPL‘s current portfolio consists of:
a. 19 onshore concessions in exploration stage under Petroleum Concession Agreement (PCA)

b. 26 onshore exploration licenses with OGDCL, PPL, OMV, Al-Haj, KUFPEC and Tallahassee
(Petroleum Policy 2012) ranging from 2.5% to 4.66% on full sharing basis
c. 03 Farm-in onshore exploration licenses with 25% interest on full participation basis with PPL
d. 89 Development and Production Leases (D&PLs)
e. 04 concessions in offshore area under Production Sharing Agreement (PSA)
f. Farm-in onshore exploration licenses have been evaluated with OGDCL & PPL.
8.2 MAJOR EXPLORATION ACTIVITES
Seismic Acquisition Activity (during 2019-2020):
Seismic
Block Operator
2D L.km 3D Sq.km
Orakzai & Tirah OGDCL 435 -
Zorgarh OGDCL 268 -
Khuzdar North OGDCL 235 -
Tal MOL 510
TOTAL 938 510
The comparative analysis for 2D/3D acquired seismic is as follows:

Furthermore, following 2D/3D seismic processing/reprocessing projects have been carried out
during this fiscal year:
2D 3D
S.No Block Name Operator Re- Re- Status
Processing Processing
Processing processing
(L. Km) (Sq. Km)
(L. Km) (Sq. Km)
1 TAL MOL 152 3100 Ongoing
2 Kuhan UEPL 90 Completed
3 Mehar UEPL 435 Completed
4 Mubarak UEPL 380 548 Completed
5 Dhok Sultan PPL 378 175 Ongoing
6 Shah Bandar PPL 180 Completed
7 Gambat South PPL 650 Ongoing
8 Kharan South PPL 865 Completed
9 Musa Khel PPL 168 Completed
10 Hub PPL 295 Completed
11 Pasni West OGDCL 881 Completed
12 Planatak OGDCL 344 Completed
13 Zorgarh OGDCL 346 Completed
14 Gurgalot OGDCL 320 Ongoing
15 Guddu OGDCL 545 Completed
16 Ranipur OGDCL 2689 Ongoing
17 Sinjhoro OGDCL 952 Ongoing
18 Rakshan OGDCL 602 Completed
19 Makhad KPBV 1220 Completed
Sub- Total 1949 2835 1842 7469
Total 2D Processing/Re-
4784
processing
Total 3D Processing/Re-
9311
processing
Due to COVID-19 pandemic, few 2D/3D Seismic processing/reprocessing projects have been
delayed and expected to be completed in next fiscal year.
8.3. E&P ACTIVITES IN OFFSHORE BLOCKS
GHPL being licensee in offshore is managing the following 04 Production Sharing Agreements (PSA) by
different Operators:
➢ Offshore Indus N Eni Pakistan Limited (01)

➢ Offshore Indus G Eni Pakistan Limited (01)
➢ Eastern Offshore Indus C Eni Pakistan Limited (01)
➢ Offshore Indus J PEL (01)

8.4 DRILLING ACTIVITIES
Following drilling activities were carried out in different blocks in which GHPL is Joint Venture Partner.
Wells Status 2018-19 2019-2020

Exploration &
21 9
Appraisal Wells
Development Wells 10 5
Discoveries 8 3
The comparative analysis for Exploration/Appraisal and Development wells is as follows:
Furthermore, due to COVID-19 pandemic, few Exploration/Appraisal and development wells have been
postponed to next fiscal year.
8.5 DISCOVERIES 2019-2020
A total of 3 discoveries were made during the year 2019-2020:
i. Pandhi-1 discovery was made in Bitrisim Block by OGDCL.

ii. Metlo-1 discovery was made in Ranipur Block by OGDCL.
iii. Mamikhel South-1 discovery was made in Tal Block by MOL.
8.6 PRODUCTION STATUS
GHPL’s share of average daily production from all fields during FY 2019-20 is as follows and also shown
graphically:
2018-2019 2019-2020
Oil/condensate (Bpd) 9,094 7,780
Gas (MMscfd) 257 233
LPG (MT/D) 197 181

COVID-19 pandemic affected production during March – May 2020.
8.7 MAJOR PRODUCTION & DEVELOPMENT ACTIVITIES
8.7.1 SAWAN – Operated by OMV

(GHPL working interest 22.5%)
Gas production from Sawan continued in the year 2019-20 through front-end compression with a
natural declining trend. The average gas production from the field during 2019-20 was 33.8 MMscfd
(Million Standard Cubic Feet Per Day).
Several well intervention activities including additional perforations/scale cleanout jobs were carried out
to maintain/enhance production especially at Sawan-4 and Sawan-10. A workover was carried out at
Sawan-4 well to clear fish / restriction in the well. Plan is to execute hydraulic fracturing to revive
production.
Sawan processing facilities continued to process Latif JV gas resulting in efficient utilization of processing
facilities and extension of field life for both fields. Following modifications are under review by JV to
address the production decline and lower technical limit of production facilities:
- Lowering of Plant Technical Limit (Engineering Study in progress & actual test of plant at 12.5
MMscfd raw gas planned)
- Replacement of existing front-end compressors (oversized for current production) with smaller
machines to account for high technical limit and OPEX optimization (to save on high fuel
consumption and maintenance costs associated with existing compressors)
- Installation of nodal compressors to reduce back pressures on distant wells
8.7.2 GAMBAT / TAJJAL – Operated by OMV

(GHPL working interest 25%)
Gas production from the Tajjal field continued in the year 2019-20 at 0.52 MMscfd. The field is on natural
decline & producing through Sawan Font End Compression. The Tajjal-1 well is on production. Scale
clean-out jobs are carried out at Tajjal-1 to ensure production continuity. Operator has applied for
relinquishment of Gambat exploration license.
8.7.3 ZAMZAMA – Operated by OPPL


Zamzama field produces gas and condensate. The average production from the field during 2019-20 was
26.31 MMscfd Gas and 122 BCPD condensate (Barrels of condensate per day). The field is on natural
decline.
Several well intervention activities including additional perforations were carried out along with process
optimizations to maintain/enhance production and reduce OPEX. Khadro formation was tested in Zam-9
and added in production w.e.f. 25-Aug-2019. Flow rates are: Gas = 3.35 MMscfd, Water = 51 bpd
Rental compressors were installed in place of FEC to enhance recovery and reduce fuel gas.
8.7.4 CHANDA – Operated by OGDCL

Average production from the field during 2019-20 was 07 MMscfd; 2,641 Bpd (Barrels of Oil per day)
and 12 MT/D of LPG (Metric Ton per Day) from 05 wells. Reservoir simulation study is in progress to
evaluate further potential and enhance recovery.
Drilling & testing of Chanda-5 development well was completed and Chanda-5 production started w.e.f.
28-Feb-2020 at initial rates of 4.21 MMscfd & Oil at 740 bpd. Additional perforations were carried out at
Chanda-2 well resulting in increase in production by 1.37 MMscfd & 680 bpd. Both these wells resulted in
increase of LPG production from 10 to 20 MT/D.
Moreover, well interventions & process optimizations are being planned to enhance production &
recoveries.
8.7.5 TAL – Operated by MOL Pakistan

Total average production from Tal Block (Manzalai, Makori, Mamikhel, Maramzai, Makori East,
Mardankhel, Tolanj X1, Tolanj West and Makori Deep Fields) during 2019-20 was 301.3 MMscfd of Gas,
18,990 Bpd of Oil & condensate & 454.44 MT/D of LPG.
Mamikhel South-1 was drilled as an exploratory well and resulted in discovery. The well flowed at 18.20
MMscfd of Gas and 3870 Bpd of Condensate @ 32/64” choke with 5208 psi FWHP. The well tie-in
activities are currently being planned.
An overall production curtailment was observed during the year due to reduced receipt of crude &
condensate as refineries faced issue of piling stock of furnace oil, locals strikes, delay in uplifting of LPG
and COVID-19 pandemic. Several well interventions and reservoir monitoring activities were also carried
out during the year for production continuity and enhancement.
a. Manzalai: Average production from the field during 2019-20 was 24 MMscfd, 426 Bpd
condensate & 6.44 MT/D LPG from 06 wells. Compression remained operational to support the
field’s declining pressures & production rates. Field is in depletion phase. Further field
compression options are being considered to enhance recoveries.
b. Makori: Average production from the field during 2019-20 was 0.22 MMscfd, 16 Bpd and 0.58
MTD of LPG from one well only. Field is in depletion phase and well is on cyclic production.
c. Mamikhel: Average production during 2019-20 is 12.43 MMscfd Gas, 254 Bpd Condensate &
3.29 MTD LPG from two wells. Wellhead compression remained operational to support the field’s
declining pressures & production rates.
d. Maramzai: Average production during 2019-20 is 122 MMscfd Gas, 4,192 Bpd Condensate and
88 MTD of LPG from four wells.
e. Makori East: Average production during 2019-20 is 73 MMscfd Gas, 9,965 Bpd Oil and 291

MTD of LPG from six wells.
f. Mardankhel: Average production during 2019-20 remained 46 MMscfd Gas, 3,341 Bpd
Condensate and 28 MTD LPG. Mardankhel-3 successful commissioned on July 4, 2019 at 12.63
MMscfd Gas and 338 Bpd Condensate.
g. Tolanj X1 & Tolanj West: Average production during 2019-20 was 10.41 MMscfd Gas and 22
Bpd Condensate from two wells.
h. Makori Deep: Average production during 2019-20 was 13 MMscfd Gas, 1,776 Bpd Condensate
and 37 MTD of LPG. Makori Deep-2 was put on production w.e.f. 19-Nov-2019 @ 10 MMscfd
Gas, 1100 Bpd Condensate & 21 MTD of LPG.
Upcoming projects in TAL Block are Maramzai field compression and recovery of LPG from sales gas of
Manzalai CPF.
8.7.6 MAZARANI – Operated by PPL

Average production from the field during 2019-20 was 4 MMscfd and around 08 Bpd Condensate. The
field is approaching its economic limits and D & PL expiry was by 31st August 2019. Therefore, Operator
has applied for D & PL extension and is evaluating various options to continue production from the field
including gas price increase and gas sales to third-party. Handling of water & continuity of production is
challenging in the field.
8.7.7 PARIWALI – Operated by POL

Average production from the field during 2019-20 was 4 MMscfd Gas, 263 Bpd Condensate and 10 MT/D
of LPG. The field is on natural decline.
8.7.8 BITRISM – Operated by OGDCL

Based on the revised Production Strategy and subsequently revised Bitrism Field Development Plan,
early production (18-24 months) from Bitrism West well(s) at 5 MMscfd Gas, 650 Bpd Condensate
and 40 MT/D LPG was achieved thereby resulting in effective utilization of existing infrastructure
(Sinjhoro Plant) and CAPEX savings.
Bitrism well(s) are being processed through Sinjhoro gas processing facilities & LPG Plant. Average
production from the field during 2019-20 was 6 MMscfd Gas, 708 Bpd Condensate and 42 MTD of LPG.
8.7.9 MIRPUR KHAS & KHIPRO – Operated by UEPL

Total average production from these two blocks during 2019-20 was 401 MMscfd of Gas, 2,742 Bpd of
Condensate and 33 MTD of LPG. Several well intervention activities were carried out along with Rig
workovers, artificial lift and compression projects to maintain production and enhance recovery.
Various compression and efficiency improvement projects were initiated/ completed during the year.
Production of LPG remained constrained due to Wobbe index control issue.
8.7.10 BLOCK-22 – Operated by PEL


Average Gas production from Block-22 during 2019-20 was about 4 MMscfd. Water production has
increased and an existing depleted well has been converted into a disposal well by installing surface
facilities.
8.7.11 MUBARAK – Operated by OMEL

Mitha-1 well was drilled in 2018 and was put on production from December, 2018. Well head
compression was also installed and average Production from the well during 2019-20 was about 08
MMscfd.
3D Processing is currently ongoing, which will be followed by 3D Seismic interpretation to firm up the
leads into prospects for future drilling.
Revival of Saqib-1A well is being planned for production through Kadanwari CPP and in this regard
Revised FDP will be submitted to the regulator (i.e. Saqib-1A tie-in at Mitha-1 well flowline and
subsequent utilization of installed Miano pipeline network). Well revival is subject to regulatory
approvals.
8.7.12 MEHAR – Operated by OMEL

Average production from the Mehar field during 2019-20 was about 14 MMscfd Gas and 580 Bpd
Condensate from three wells. Mehar-5 development well achieved 1st Gas in September, 2019 with 11
MMscfd Gas and 560 Bpd Condensate. Compression System also commissioned at Mehar-5 and Sofiya-2
ST-3 wells.
Average production from Sofiya field (Sofiya-2 well) during 2019-20 was 4 MMscfd Gas and 132 Bpd
Condensate and well ceased to flow in June 2020. CTGL is planned for reviving the well.
Several well intervention activities including reservoir surveillance and re/ additional perforations were
carried out along with process optimizations to maintain/ enhance production and reduce OPEX. G & G
and reservoir studies are in progress to identify further drilling of new development wells and prospects or
workover in existing wells.
8.7.13 MINWAL – Operated by POL

Average production from Minwal Field during 2019-20 was 85 Bpd Oil. The field is being produced using
artificial lift.
8.7.14 CHACHAR – Operated by PPL

Chachar field is being produced through Kandhkot processing facilities. Average production from the field
during 2019-20 was 1.46 MMscfd Gas.
8.7.15 MELA D & PL - Operated by OGDCL

Average production from the field during 2019-20 was around 07 MMscfd Gas and 1,327 Bpd
Condensate. Drilling of Mela-7 development well completed and well was tested at 7.9 MMscfd Gas and
525 Bpd Oil. The 1st Gas was achieved on July 07, 2020.

Work completed on following projects: a) Mela Compression project, b) up-gradation of Mela processing
facilities and c) laying of pipeline from Mela to Nashpa plant for extraction of LPG. Diversion of Mela gas
to Nashpa plant for LPG recovery is pending acceptance by gas buyer of change in Point of Delivery (for
Mela sales gas).
8.7.16 NASHPA D & PL - Operated by OGDCL

Average production from the field during 2019-20 was around 82 MMscfd Gas,14,522 Bpd Oil and 258
MTD of LPG from seven wells. Nashpa-9 development well drilling was completed and achieved 1st Gas
in October, 2019. The initial rate was 1.4 MMscfd Gas and 675 Bpd Oil.
Process optimization of the LPG Extraction plant parameters to increase LPG and Performance test of the
plant has been successfully completed.
Production was revived from Nashpa-6 by water shut off and additional perforations which resulted in 2.8
MMscfd Gas, 1068 Bpd Oil and 7 MT/D LPG. Nashpa-4 & Nashpa-9 were diverted through Nashpa-5
separation battery & MP compressor to continue production due to declining pressures.
Upcoming projects include Nashpa reservoir simulation study, further development wells whilst field
compression project is in progress (Planned Completion revised to 4Q-2020 due to Covid-19 Pandemic).
8.7.17 NIM E.L – Operated by OGDCL
(GHPL working interest 22.5 %)
The average production from Nim E.L during 2019-20 was around 07 MMscfd Gas & 251 Bpd Oil/
Condensate. Jarwar-1 well continued producing through artificial lift (Jet pump) along with Chutto-1.
Flowline construction in progress for tie-in of Mangrio-1 and Saand wells. Saand wells will be produced
through KPD-TAY processing plant.
8.7.18 SINJHORO E.L – Operated by OGDCL
Average production from the field during 2019-20 was around 32 MMscfd Gas, 1,462 Bpd
Oil/Condensate and 131MT/D of LPG. Field is on natural decline and options are being evaluated to
enhance production and bring back shut-in wells to production. At Chak-2 well, Acid wash job of Gravel
pack was conducted resulting in production increased from 1.15 to 2.90 MMscfd Gas & 35 to 80 Bpd
condensate and 5 to 10 MT/D LPG.
8.7.19 JAKHRO D&PL – Operated by OGDCL

Jakhro field was being processed at Sinjhoro processing facilities. Average production from the field
during 2019-20 was around 1.48 MMscfd Gas, 14 Bpd Condensate and 5 MTD of LPG from 01 well.
Production volumes from Jakhro field are restricted to control high Nitrogen content in Sales gas as it was
commingled through Sinjhoro processing facilities.
8.7.20 GUDDU EL – Operated by OGDCL

Gas from Guddu field was being supplied to third party (M/s Engro). Average production from the field
during 2019-20 was about 11 MMscfd Gas from 07 wells. Production has intermittently suffered due to
plant technical issues at gas buyer’s side. Reservoir surveillance job were carried out during ATA of gas
buyer’s facilities. Umair-1 well is expected to come on production in coming FY subject to gas allocation
from the regulator.
3D Seismic processing has been carried out and based on interpretation results, the leads and prospects
will be identified for further exploratory drilling.
Field Compression project has been initiated (Planned completion: 3Q, 2021).
8.7.21 ZARGHUN SOUTH D&PL – Operated by MPCL

Average production from the field during 2019-20 was about 16 MMscfd Gas & 05 Bpd Condensate. ZS-4
was drilled, completed and put on production on March 31, 2020. ZS-4 is currently producing at 14
MMscfd Gas. Security issues remain a threat, however, are being managed for smooth operations. G & G
and reservoir studies were in progress and development wells may be drilled subject to Technical and
commercial viability.
8.7.22 TANDO ALLAH YAR EL – Operated by OGDCL

Production from the field was being processed at KPD-TAY Plant. Average production from the field
during 2019-20 was about 54 MMscfd Gas, 1,268 Bpd Oil/Condensate and 85 MTD of LPG. An overall
production curtailment was observed during the year due to reduced receipt of crude & condensate as
refineries faced issue of piling stock of furnace oil. Work was in progress for the tie-in of recent discovery,
TAY SW-1 well.
Sub-surface/surface studies for compression of TAY field are being initiated.
8.7.23 GAMBAT SOUTH EL – Operated by PPL

(GHPL working interest 25 %)
Total average production from Gambat South block during 2019-20 was about 90 MMscfd Gas, 1,037
Bpd condensate and 11.3 MTD of LPG.
GPF-IV Phase-I (by relocating Rehmat Gas Plant) was completed in Sept 2018 and works on GPF-IV
Phase -II and GPF-III continued and expected to be completed by 3Q-2020 and 3Q-2021 respectively.
Additional Perforations jobs carried out at Sharaf-1 & Sharaf-2 wells. Regular reservoir surveillance and
well intervention activities were conducted. A development well Sharaf-3 is also planned to be drilled in
next fiscal year.
G & G and reservoir studies were in progress to identify further drilling prospects.
Average production from Kabir-1 well during 2019-20 was about 0.76 MMscfd Gas and 63 Bpd
condensate. EWT operation at Kabir has been suspended from 28th Dec, 2019 due to unavailability of
requisite regulatory license by third party gas buyer. Development options were under review to exploit
the reserves of Hatim discovery due to its low heating value gas.
8.7.24 JHAL MAGSI SOUTH D&PL – Operated by OGDCL
Procurement of processing plant and material has been completed. However, construction work has
stopped, as the gas buyer (M/s SSGCL) did not start work on Sales gas line. Alternate field development
options are being explored/ pursued by the JV.
8.7.25 DHOK SULTAN – Operated by PPL

(GHPL working interest 25 %)
3D seismic was acquired on Musal structure and 3D Seismic processing was ongoing. Drilling of Dhok
Sultan South well was also carried out and well is currently suspended. Dhok Sultan-2 well is also
planned.
Production started under EWT from well Dhok Sultan X-1 ST-3 w.e.f. 02-Nov-2019. Average rates are:
Gas = 1.14 MMscfd, Oil = 655 Bpd, Water = Nil, WHFP = 5035psi @ 14/64” Choke.

Average production from the field during 2019-20 was 0.44 MMscfd and 261 Bpd. EWT operation at
Dhok Sultan X-1 ST-3 has been suspended from 2nd April, 2019 due to unavailability of requisite
regulatory license by third party gas buyer.
The work on rental oil handling facility & gas transportation pipeline for gas processing and LPG recovery
at third party plant has been initiated.
8.8 INVESTMENTS, REVENUES, ROYALTY AND TAX
During 2019-20 GHPL invested Rs. 1.6 billion in the exploration activities and Rs. 5.2 Billion in the
development of discovered oil and gas fields. Additionally, Rs. 301.5 Million were given as loan to Inter
State Gas System Private Limited (ISGSL).
Revenue of Rs. 71.5 Billion was generated from sale of Oil, Gas and LPG. Royalty and Income tax
payments made to GoP during 2019-20 were Rs. 8.4 Billion and Rs. 19.5 Billion, respectively. Further, an
amount of Rs. 5 Billion was paid as cash dividend to GoP.

8.9 BOARD OF DIRECTORS (as on 30th June 2020)
S# Name of Directors Designation
1 Ms. Ayla Majid Chairperson / Independent Director
2 Mian Asad Hayaud Din Secretary, Ministry of Energy

(Petroleum Division)
3 Dr. Kazim Niaz Chief Secretary, KPK
4 Mr. Muhammad Anwer Sheikh Senior Joint Secretary (CF-II), Finance

Division
5 Ms. Saira Najeeb Ahmad Joint Secretary (I&JV), Ministry of

Energy (Petroleum Division)
6 Dr. Sajjad Ahmad Independent Director
7 Mr. Haseeb Shakoor Paracha Independent Director

CHAPTER 9
SUI NORTHERN GAS PIPELINES LIMITED

S. No. ITEM UNIT TARGET ACHIEVEMENT
(2019-20) (2019-20)
1 LPG Production - - -
2 Gas consumers (Addition) Million 300,000 271,228
Supply of Gas to Villages/ Abadies
3 Nos - 256
(Addition)
4 Transmission Pipelines (Addition) Km 155 224
Distribution Pipelines (Addition) Main &
5 Km 3,019 5,639
Services
System Losses 6,840 -4,471
6 %
1.50% 0.340%
CNG Stations (Addition) Part of
Targets
7 Nos -
given at Sr.
No. 2
8 LPG Stations (Addition) - - -
A Projects completed during FY 2019-20 (achievements)

Following pipelines construction projects have been successfully completed by SNGPL during
FY 2019-20:
1. 8”dia x 14.50 Km Transmission Line from Dhoke Hussain to Dhoda Valve Assembly.
2. 24”dia x 19.83 Km Transmission Line from Kohat to Dakhni.
3. 10”dia x 50.70 Km Transmission Line from Daudkhel to Mianwali Line.
4. 24”dia x 93 Km Transmission Line for Punjab Power Plant.
5. 10”dia x 11.50 Km Transmission Line from Adhi to Sukho.
Following pipelines construction projects for other clients have been successfully completed
by SNGPL during FY 2019-20
1. 12”dia x 1.4 Km Transmission Gas Feeder Line for Pak-Arab Fertilizers Limited.
2. 16”dia x 24 Km Transmission Gas Sales Line for Pak-Arab Fertilizers Limited.
3. 6”dia x 1.2 Km Makori Deep-2 Flow Line along with Fiber Optic Cable.
4. 8”dia x 7.5 Km Mardankhel 3 to Mardan Khel 1 Line along with Fiber Optic Cable.
B UNDER PROGRESS PROJECTS DURING FY 2019-20
Following pipelines construction projects are under progress during FY 2019-20:
1. 16”dia x 7 Km and 8” dia x 20 Km Transmission pipeline from Wazirabad to Jalalpur
Jattan.
2. 16”dia x 29.2 Km Transmission pipeline from Ismailkot to Doorstep at Rashakai
Special Economic Zone-SEZ for the supply of 30 MMCFD gas to Rashakai SEZ.
3. Lahore City Bifurcation/Augmentation Project to address low pressure.
Phase-I
a) 24”dia x 48 Km Transmission pipeline from Phoolnagar to Nabi Bakhshwala
(Ferozpur Road)
b) 16”dia x 27 Km Transmission pipeline from Ferozpur Road to Barki.
4. 16”dia x 50 Km Transmission pipeline from A5 to Bahawalpur to address low pressure
problem of Bahawalpur.

CHAPTER 10
SUI SOUTHERN GAS COMPANY LIMITED

10.1 GAS-DEMAND SUPPLY
10.1.1 Gas pipelines commissioned for bridging demand-supply gap

The SSGC completed two gas pipelines in January-February 2020 that would help to reduce the current gas
demand-supply gap in Sindh and particularly in its largest load centre, Karachi. The company completed 12” dia x 46
km line for bringing in additional 40 MMCFD gas to add on to the 35 MMCFD gas already in the system. The second
pipeline, the 8” dia. x 28 kms line injects 23 MMCFD gas into SSGC’s system.
10.1.2 Gas Pipeline repaired post rains in Balochistan

SSGC's technical teams successfully repaired the 12” dia. Gas Pipeline located in Bibi Nani area in
Balochistan. The line was damaged during the recent rains. Gas supply to Quetta was restored after a round
the clock repair of the pipeline.
10.1.3 New gas line laying

SSGC recently commissioned newly connected 16 inch dia. pipeline with the existing 16 inch dia.
supply main at Sariab Road, Quetta to augment gas supplies in the area.
10.2 ANTI-GAS THEFT DRIVE

10.2.1 SAPM on Petroleum-SSGC holds talks on UFG control efforts
The Government of Pakistan and SSGC are implementing since April 2019 a campaign to control UFG
and gas theft. The Special Assistant to PM, on Petroleum chaired a meeting with the SSGC management to
review the progress in July 2019 on UFG and anti-gas theft campaigns.
10.2.2 Anti-gas theft campaign Operation Grift made major gains
The Company’s Operation Grift continued its raids and crackdown against gas thieves. By June 2020,
more than 220 offenders were arrested, 445 trials were held in gas utility courts and 475 FIRs were lodged.
10.3 COVID-19
10.3.1 COVID-19 – SSGC contributes Rs. 30 million to PM Fund
Through the Ehsaas Telethon, SSGC contributed Rs. 30 million to the Prime Minister’s COVID19
Relief Fund. The announcement to this effect was made by Chairperson SSGC Dr. Shamshad Akhtar at the
Telethon transmission held in April 2020.
10.3.2 COVID-19 - CSR support to marginalized communities provided

In the wake of the outbreak of Coronavirus Pandemic in the country, as part of its CSR initiatives,
SSGC reached out to the marginalized communities of its franchise areas of Sindh and Balochistan by
providing monetary assistance to more than 10 health care institutions and NGOs and media-persons through
local press clubs.
10.3.3 Covid-19: Gas supply provided to quarantine center

SSGC provided gas supply to quarantine center set up by Government of Balochistan in Mustang
Road, Quetta for the COVID-19 victims.
10.4 EVENTS
10.4.1 SSGC participated in ADIPEC
SSGC was one of the leading oil and gas sectors of Pakistan that actively participated in Abu
Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2019 held in Abu Dhabi. The Company
was part of the Pakistan Pavilion set up at the mega exhibition-cum-conference. SSGC’s senior management
participated in the event.

10.4.1 Participation in POGC in Islamabad
SSGC participated in Pakistan Oil and Gas Conference held in Islamabad in September 2019 by setting
up a corporate booth that encapsulated the Company’s efforts to control UFG and bridge demand-supply gap
of natural gas.
10.5 CUSTOMER RELATIONS

10.5.1 Recovery drive in Hyderabad proves productive
Persistent persuasion by SSGC’s Recovery Department (Hyderabad Region) even during the COVID-
19 driven lockdown resulted in retrieval of over Rs. 3.89 million from Liaquat University of Medical Health
Sciences (LUMHS), Jamshoro.
10.6 IT/SOCIAL MEDIA-DRIVEN EFFORTS

10.6.1 E-Khuli Kacheri launched
On the directives of the Prime Minister of Pakistan’s PMDU (Performance Delivery Unit), SSGC launched
online khuli kachehri sessions in its Head Office for redressal of customer complaints. So far eight such sessions have
been convened.
10.6.2 SSGC Customer Connect App

SSGC Customer Connect App was relaunched in July 2020 with more customer friendly features.
10.6.3 Meter Read Image Printing deployed on SSGC Utility Gas Bills
SSGC’s IT department implemented another business-critical service by printing meter read images on
SSGC gas utility bills as per court orders. These images were being printed on gas utility bills through an
automated and seamless technological solution developed in-house by IT’s CC&B team.
10.7 ENERGY CONSERVATION DRIVE

10.7.1 Bachat ka Tadka digital episodes launched
As part of the initiative to make people aware of natural gas being a non-renewable resource and why
it is a necessity to conserve it, SSGC developed a series of digital/social media episodes with Chef Saadat to
introduce the concept of using gas wisely and conserving it while cooking.
10.7.2 Introduction of Conical Baffle

As part of the energy conservation campaign, SSGC encouraged the installation of conical baffles in
gas-fired geysers that would help the customer make 25% savings on their gas bills.
10.7.3 Back to Basics program launched in schools
SSGC launched a campus-driven Back to Basics awareness program to create awareness about energy
conservation, gas theft and other gas related issues. Several sessions were held in Karachi and Hyderabad.
10.8 TRAININGS/CSR Activities

10.8.1 Workshops held on ethical business dealings for senior management
The HR department organized several 2-day training program for the senior management of the
Company on “Ethical Business Dealings, Conflict of Interest and Benefits of Good Corporate Governance” in
line with the Board mandate to facilitate transformation of SSGC to a dynamic and well managed ethically
and professionally run organization with high standard of corporate governance.
10.8.2 Support for 25 Deaf Children of FESF

SSGC’s CSR Program took up the responsibility of supporting 25 deaf students, enrolled in Family
Educational Services Foundation (FESF) by funding the entire yearly expenses related to their education in
September 2019.

10.8.3 SSGC supports Thalassemia Patients
SSGC provided financial support for the provision of blood bags to benefit 150 Thalassemia patients
of Afzaal Memorial Thalassemia Foundation (AMTF) in September 2019.
10.9 AWARDS
10.9.1 SSGC wins CSR Awards 2020
SSGC was conferred with NFEH's Corporate Social Responsibility Awards 2020 at the 12th CSR
Summit organized by National Forum for Health and Environment (NFEH) held in Islamabad. The event was
held on January 22, 2020.
10.9.2 SSGC bags 9th Intl CSR Award in the field of Education
SSGC bagged the 9th Intl CSR Award for its contribution in the area of education and scholarships.
The Awards ceremony and Summit was organized by The Professional Network on Jan 30, 2020.
10.9.3 SSGC’s CSR contribution acknowledged by YPFW
In order to acknowledge the role of Corporate entities in uplifting the society through CSR and to bring
the government’s and key stakeholder’s attention towards the future targets and goals of CSR, Youth
Parliament Welfare Foundation organized a Conference and Awards ceremony called CSR Targets 2020.
SSGC was conferred with the Award on the occasion for its services in the field of CSR.
10.9.4 SSGC wins 6th Environment Award
SSGC was conferred with 6th Environment Health & Safety Award 2020 in August 2020. The award
ceremony was organized by the Professionals Network. SSGC was selected in the “Responsibility for Health
and Safety” category.
10.9.5 9th Fire & Safety Excellence Award 2019 for SSGC
SSGC won the 9th Fire & Safety Excellence Award 2019 in November 2019 which was a
manifestation of its HSE & QA goals.
10.10 SPORTS
10.10.1 Triumph in soccer
In October 2019, SSGC Football Team recently outclassed WAPDA 3-0 to win All-Pakistan Senator
Salahuddin Memorial Tournament held in Multan.
10.10.2 SSGC riders won big for the Company
SSGC triumphed in the 65th edition of National Track Cycling Championship 2019, held under the
aegis of Pakistan Cycling Federation from December 28 to 30, 2019 at the Velodrome of Nishtar Park Sports
Complex in Lahore. Punjab secured the second place.

CHAPTER 11
Inter State Gas Systems (Private) Limited

11.1 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.
• Going back to what Joseph Stiglitz has elucidated in his seminal work, “Globalization and its
discontents.” Developing countries such as Pakistan are confronted by a protracted struggle to
upgrade and develop infrastructure to streamline and maintain economic growth which then
leads to equitable economic dividends for a burgeoning populace.
• 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.
11.2 TRANSNATIONAL GAS PIPELINE PROJECTS
In order to meet the gas supply-demand gap, The Government of Pakistan is pursuing multiple
projects, including import of Liquefied Natural Gas (LNG) Iran Pakistan (IP) & Turkmenistan
Afghanistan Pakistan India (TAPI) Gas Pipeline Projects. The Government of Pakistan has also
embarked on a much needed programme of infrastructure development by conceiving the North
South Gas Pipeline, a new pipeline that will transport gas from the South to the North of the
country.
Projects Brief features and current status
TAPI Gas • GSPA concluded in 2012 whereby Turkmenistan will supply 1,341 MMscfd
Pipeline gas for 30 years
• A consortium Company namely TAPI Pipeline Company Limited (TPCL)
incorporated in 2014 to undertake the project Development Activities.
• Turkmengaz has been nominated as the Consortium Leader of TPCL (2015)
and will inject 85% of equity part in TPCL while rest of the TAPI member
share 5% each of equity.
• Shareholder Agreement signed in 2015 while Investment Agreement in 2017.
• Estimated Project Cost was US$ 10 billion.
• Pakistan share @ 5% of the original cost estimates is US $ 200 million.
• Stone laying ceremony of the Project held in December, 2015
• FEED completed; Contract for LLI’s are being finalised.
• Physical work commenced in Turkmenistan and Afghanistan
• Heads of Terms of Host Government Agreement (HGA) signed on March 12,

2019 and work on full form HGA is underway.
• Approval of environmental authorities of Baluchistan and Punjab obtained.
• Initial land acquisition activities are underway.
• Subject to completion of codal formalities importantly finalization of HGA
and issues related to gas sales & purchase arrangements, ground breaking
ceremony will be held.
• Currently TAPI Parties are discussing Herat offtake strategy implementation
approach wherein gas flow is planned FY 2023-24.
IP Gas • GSPA concluded in 2010 whereby Iran will supply 700 mmscfd gas for 25
Pipeline years
• BSF, FEED, DRS, SEIA studies and installation of Concrete Markers on
ROW completed for Pakistan.
• Financial close and appointment of EPC contractor couldn’t be achieved due
to sanctions
• A meeting was chaired by the Honorable Prime Minister of Pakistan on 6th
March 2019. The Prime Minister directed that Iran must be engaged with a
reconciliatory approach regarding the Project.
• An amendment to IP GSPA was signed on 5 September 2019 whereby the
period for limitation applicable with any claim(s) arising under or in
connection with GSPA has been extended for a period of 05-years.
• Iran has withdrawn its “Seller Termination Event” Notice.
North South • ECC Approval - January 10, 2015 under G to G arrangement with Russia
Gas Pipeline • Inter-Governmental Agreement (IGA) between Pakistan and Russia was
signed on October 16, 2015
• Under IGA the Project will be 100% foreign funded with local element for
ROW and security
• Inter State Gas System (ISGS) from Pakistan side and RT-Global Resources
(RT-GR) from Russian side are the Nominated Entities
• ECC Approval for Implementation in 2 Phases - April 11, 2016
• Phase I: 860 Km 600 MMCFD Pipeline from Nawabshah to Lahore
• Phase II: Compression Facilities to increase capacity to 1,200 MMCFD
• Subsequent to ECC’s decision, the discussion/negotiation on the BOOT
Agreement have been substantially concluded.
• Finalization remains pending due to approval of latest sanction free project
structure by Ministry of Law, gas source and concessions to be allowed to the
Russian entity.
• The route for the Project has been charted and has been submitted for the
approval of Ministry of Defense.
• A draft Facilitation Agreement and provision of sovereign guarantee has also
been shared with the MoE for their input.
• Later in the light of Supreme Court of Pakistan decision on utilization GIDC
funds and start of activities on the Project, it is planned to implement the
project through JV- Special Purpose Vehicle (SPV) of Pakistan and Russian
nominated entities for the project development with Pakistan having major
shareholding. Same will be discussed with Russia in upcoming JCC meeting
scheduled by end of September 2020.
Strategic • Asian Development Bank (ADB) Mission visited Pakistan during September
Underground 2003, for providing Technical Assistance for undertaking a feasibility study in
Storages selecting and developing underground gas storage system.
• A Feasibility Study on the development of underground gas storages was
undertaken by SOFREGAZ, France in 2004-07.
• Steering/Sub- Committee of the ECC of the Cabinet held on January 1, 2008,
wherein ISGS was directed to immediately undertake necessary measure for
building strategic underground gas storage facilities cater for the country’s
enhanced gas needs in the winter season.
• 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.
• 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.
• Asian Development Bank (ADB) has agreed to provide technical assistance
and loan to develop much needed underground gas storages in the country
which will cater for seasonal fluctuation and peak shaving.
• ADB is in process of recruitment of consulting services for update feasibility
study.
11.3 ISGSL Gas import and Infrastructure Development Project

Inter State Gas Systems (Private) Limited (ISGSL) is a public sector company, operating
under Ministry of Energy (Petroleum Division). ISGSL is a specialized company setup for planning,
implementing, owning and operating projects related to Gas import and infrastructure development.
In order to meet the gas supply-demand gap, Government of Pakistan (GoP) is pursuing multiple
projects. In line with the directions of GoP, ISGSL, besides persevering with the primordial objective
of stimulating gas import options, has played a key role in the implementation of gas infrastructure
development projects, such as Turkmenistan Afghanistan Pakistan India (TAPI), Iran Pakistan (IP)
Pipeline Project, North South Gas Pipelines (NSGP) Projects, LNG Terminal etc.
ISGSL successfully concluded two (02) GSPAs with Iran and Turkmenistan, which provides a ready
framework for the supply of natural gas equivalent to 30% of Pakistan’s current gas utilization.
TAPI Gas Pipeline Project : The Project has entered the stage of practical implementation. Pursuant to
the incorporation of Project Implementation Company i.e. TAPI Pipeline Company Limited (TPCL),
feasibility studies have been prepared, Front End Engineering Design (FEED) completed and contract
for LLI’s are being finalized. While physical work commenced in Turkmenistan and Afghanistan,
initial land acquisition activities are underway for Pakistan section of the Pipeline. GoP and TPCL
also singed the Heads of Terms of Host Government Agreement (HGA) signed in March 2019 and
work on full form HGA is underway.
IP Gas Pipeline Project: The Company has completed the feasibility study, FEED with the help of
International consultant for the Project. However, financial close and appointment of EPC contractor
couldn’t be achieved due to international sanction issue. As a way forward, an amendment to IP
GSPA was signed on 5 September 2019 whereby the period for limitation applicable with any
claim(s) arising under or in connection with GSPA has been extended for a period of 05-years.
North South Gas Pipeline Project: GoP has embarked on a much needed program of infrastructure
development by conceiving the North South Gas Pipeline, a pipeline that will transport gas from the
South to the North of the country. Pursuant to the approval of ECC, Pakistan and Russia signed an
Inter-Governmental Agreement (IGA) in October 2015 for cooperation for the development of the
Project. Work is underway to implement the project through JV- Special Purpose Vehicle (SPV) of
Pakistan and Russian nominated entities with Pakistan having major shareholding.
Underground Gas Storages (UGS): A Feasibility Study on the development of UGS was undertaken
by SOFREGAZ, France in 2004-07. 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 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. Asian Development Bank (ADB) has agreed to provide technical assistance and have
engaged the consultant for update feasibility study. Further negotiations are also under way with the
potential international project developing companies.

CHAPTER 12
Pakistan State Oil Company Limited

12.1 Company Profile
PSO is the nation’s leading Oil Marketing Company (OMC) and is fueling every sector of
Pakistan’s economy. Since its inception in 1976, PSO has a long and proud history of serving the
energy needs of the country in a responsible manner. For over four decades we have striven to
empower people across air, land and sea with our innovative fueling products and services. As
Pakistan’s Largest OMC, we are proud to be at the heart of all journeys. In FY 2019-20, PSO
continued to stand tall as the oil Market leader with a market share of more than 44.3% in liquid fuels.
A snapshot of Pakistan’s downstream sector for FY2019-20 is hereunder:
Source: Oil Companies Advisory Council (OCAC) TPPL includes Pearl Parco. Others includes OMCs having share less than 5%
The Company’s primary business involves sourcing (imports and local), storage and
marketing of petroleum products along with the import of Re-gasified Liquefied Natural Gas
(RLNG). The Company also has ancillary businesses in non-fuel retail and cards. Efforts are also
being made to further increase PSO’s presence in the lubricants and gaseous fuels businesses. PSO’s
wide spread infrastructure comprising of approx. 3,500 retail outlets, 9 installations and 23 depots is
its major strength. As the market leader in the aviation fuel business, PSO has presence and refueling
facilities at 10 aviation stations. The Company also has two state-of-the-art lubricant manufacturing
facilities with a production and blending capacity of 70,000 MT per annum. PSO has increased its
shareholding in Pakistan Refinery Limited (PRL) to 63.6%, making it the largest stakeholder of
the entity. This acquisition strengthens our supply chain and supplements PSO’s drive
to vertically integrate the business. During FY19 the Company, subsequent to its nomination by
GOP, initiated a project to set up a grass-root deep conversion refinery under a government-to-
government arrangement with Saudi Aramco. The project is currently in the advance feasibility
development stage.
As the country’s flagship OMC, PSO gives utmost consideration to its triple bottom line i.e.
securing business operations to safe-guard the planet, enabling a congenial working environment for
its people and increasing shareholder’s income through profitability. Health and safety of internal &
external stakeholders are of prime importance and a vital part of the Company’s core corporate
objectives. The Company strives to conduct business operations in a manner that is sustainable and
has minimal impact on the environment. PSO’s focus on conserving the environment may be
substantiated from its initiatives of introducing environment friendly fuels Hi-Octane 97 Euro 5 &
Euro 5 Altron Premium as well as the launch of electrical vehicle charging units under the brand name
Electro. PSO is the first OMC to upgrade Pakistan’s fuel standard from Euro 2 to Euro 5.
The Company is actively giving back to the society by participating in various community
development, healthcare and educational projects through PSO’s CSR Trust. During the year, PSO
committed Rs. 180 million with a contribution of Rs. 85 million exclusively to assist the nation in
combatting the COVID-19 pandemic.
At PSO, our customers are at the heart of everything we do. To receive customer feedback,
resolve queries and increase customer satisfaction, a dedicated customer services centre and help-line
are in place. The Company also has a strong presence on various social media platforms wherein
customers are updated regarding latest offerings and developments. These touch points assist the

Company in gauging the pulse of customers and receiving feedback in real-time. The Company also
monitors the complaints received on “Pakistan Citizen Portal” to ensure timely resolution.
To keep our stakeholders updated about the Company’s information, PSO has a website
(www.psopk.com) and following key pages on social media that provide news and information.
https://www.facebook.com/PSOCL/
https://twitter.com/PSOPakistan
https://www.linkedin.com/company/pakistan-state -oil-company-pso-/
PSO’s commitment towards leadership, governance, customer focus and social responsibility
has been recognized by the Management Association of Pakistan. During the period under review,
PSO won the 35th Corporate Excellence Award in the oil and gas marketing companies’ category.
12.2 Markets Served & Product Lines

PSO has strong market participation in Pakistan and is also involved in the export of
Petroleum products. Proceeds from the local market i.e. Pakistan, account for 99.5% of the
Company’s sales.
PSO has a complete range of lubricants for automobile and industrial sectors with recognized
brand names for each segment that include “Blaze 4T” for motorcycles, “Carient” series for motor
cars and “DEO” series for diesel engines.
The Company has revamped its Shop-Stops at retail outlets with a fresh and vibrant look & feel. The
recently introduced customer focused card Digi Cash has become a success story with users
exceeding 100,000 in less than a year.

12.3 Group Structure
The Group consists of Pakistan State Oil Company Limited (the Holding Company) and
Pakistan Refinery Limited (the Subsidiary Company).
PRL became PSO’s subsidiary on December 01, 2018 as a result of increase in shareholding
of PSO in PRL from 24.1% to 52.7%. During the year ended June 30, 2020, PSO acquired further
shareholding in PRL thereby increasing its stake in PRL to 60.00% which was further increased to
63.6% subsequent to June 30, 2020.
63.6%
PSO PRL
(the Holding Company) (the Subsidiary Company)
12.4 Ownership and Operating Structure

PSO and PRL are operating as Public Limited Companies incorporated in Pakistan & listed on
the Pakistan Stock Exchange Limited.
Majority of shares in PRL are owned by the Holding Company – PSO (63.6%). GOP enjoys
51% (direct and indirect) shareholding in PSO with 25.5% direct shareholding. Detailed shareholding
structures have been mentioned in pattern of shareholdings of each Company.
PRL’s corporate office is located at its refining facility in Karachi, with a storage terminal at
Keamari. PSO’s Head Office and two lubericant manufacturing plants are at Karachi while a network
of retail outlets, storage locations and sales offices are available throughout the country.
12.5 Nature of Relationship

PRL is engaged in the production and sale of Petroleum products, whereas, PSO is engaged in
the marketing of petroleum products. The acquisition of PRL has resulted in backward integration for
PSO and has provided it with secured source of purchase.

12.6 STRATEGIC INVESTMENTS
PSO has strategic investments in storage, refining, aviation, lubricants and pipeline
businesses.
Pakistan Refinery Eastern Joint

Hydrant
Limited
(Subsidiary 63.6% 44% (Un-incorporated
company) joint arrangement)
Pak Grease
PSO’ s Strategic
Manufacturing
22% Company Limited
Investments
(Associated
Joint Installation of
Marketing Company)
Companies (Un-
incorporated joint
62%
arrangement)
Pak Arab Pipeline
12% Company
(Associated Company)
Asia Petroleum New Islamabad

Limited
(Associated 49% 50% International Airport
(Un-incorporated joint
Company) arrangement)
% Share of PSO
(rounded off to the nearest zero)
• Pak Grease Manufacturing Company Ltd (Pak.Grease) – Others include private investors.
• Pakistan Refinery Limited (PRL) – Others are listed on Pakistan Stock Exchange and held by the
general public.
• The New Islamabad International Airport Fuel Farm - Attock Petroleum Limited (APL) (50%).
• Eastern Joint Hydrant System (EJHD) - Others include SPL (25%) & TPML (13%), managed by PSO.
• Asia Petroleum Limited (APL) - Others include Industrial Petro. Group (12.5%), Veco Int’l (12.5%),
Infravest (26%).
• Joint Installation of Marketing Companies (JIMCO) - Others include SPL (25%) & TPML (13%),
managed by PSO.
• Pak Arab Pipeline Company (Private) Limited (PAPCO)-Others include PARCO (51%), Shell (26%),
Chevron/TPML (11%).

12.7 GEOGRAPHICAL PRESENCE
12.8 SIGNIFICANT CHANGES FROM PRIOR YEARS

Acquisition of Additional Shares in
Pakistan Refinery Limited (PRL)
During FY2019-20, PSO further acquired
10.5 million shares and 2.6 million shares
of PRL from The Shell Petroleum
Company Limited and Chevron Global
Energy Inc., USA, respectively, Further,
the Company subscribed 21 million right
shares of PRL, previously under
injunction. Resultantly, PSO’s
shareholding in PRL increased from
52.7% to 60.0%. Subsequent to June 30,
2020 PSO’s stake in PRL further
increased to 63.6% as PSO in addition to
fully subscribing its share in right issue
made by PRL also subscribed 22.5
million unsubscribed right shares.
Decline in International Oil Prices

FY 2019-20 saw an abnormal decline in
International oil prices owing to Russia-Saudi
Arabia’s price war. The decline was further
aggravated by suppressed demand arising due
to decreased economic activity primarily
attributable to COVID-19 during the 4th
quarter of FY2019-20. The impact of price
decline at global level also impacted
Pakistan’s Oil Industry with significant
inventory losses
Change in the Energy Mix

The Company’s volumes in black oil
further reduced by 40.7% approx. in
FY20 vs. FY19 due to the continuing
impact of Government’s policy of
shifting power production plants to
RLNG. Owing to this shift black oil’s
share has reduced considerably in the
country’s energy mix.
Pakistani Rupee against the Dollar

The Company has incurred significant
exchange losses on the import of white oil
products in the past due to devaluation of
Pakistani currency against USD, as only a
certain portion of exchange losses were
allowed by OGRA in pricing. This year ECC
and OGRA allowed complete recovery of
actual exchange losses in pricing.
High Discount Rate

Higher policy rate of 13.25% aggravated
financing cost for the company. Policy
rates witnessed steep decline during Q4
of FY20 as part of mitigation efforts
adopted by regulator i.e State Bank of
Pakistan (SBP).
Revised Vision, Mission and

Values (VMV)

PSO, realigned its VMV subsequent to
adopting a rigorous & inclusive
approach. The realigned VMV shall
assist the Company in taking on much
bigger challenges in future.

CHAPTER 13
PAK ARAB REFINERY COMPANY
www.parco.com.pk

13.1 Introduction
Incorporated in Pakistan in May 1974, Pak-Arab Refinery Limited (PARCO) is a 60:40
joint venture between the Government of Pakistan (GoP) and the Emirate of Abu Dhabi. Since
the commencement of commercial operations in 1981, the company has been able to fund its
projects without further equity injection from sponsors. The Company has now an asset base of
~USD 1 billion.
13.2 Vision Statement

“To be a leading national energy company of choice for all stakeholders by employing a
strategy of diversification and integration with the right technology and adopting best industry
practices for sustained competitive advantage”.
13.3 Mission Statement

“To transport, refine and market petroleum and related products in Pakistan in a safe,
efficient, reliable and environment-friendly manner maintaining professional excellence and
ensuring favorable returns on all employed resources”.
13.4 Core Values

Integrity, Teamwork, Results Orientation, Innovation and Continuous Improvement,
Commitment, Courage, Communication.
13.5 Board of Directors

The Board of the Company comprises of following members:-
Mr. Mian Asad Hayaud Din, Chairman
Mr. AIi Al Dhaheri, Vice Chairman
Mr. Shahid Mahmood Khan, Managing Director
Mr. Muhammad Ayub Chaudhry, Director
Mr. Aftab Hussain, Director
Mr. Abdul Hadi Shah, Director
Mr. Maximilian Grasserbauer, Director
Mr. Florian Merz, Director
Mr. Zayed Ali Mazrouei, Director
13.6 Employment Opportunities and Manpower Strength

PARCO’s Refinery, cross country Pipeline network, LPG Plants and Gas Centers, etc.,
with their allied facilities and installations have been instrumental in expanding the country’s
industrial, technology and employment base.
The consistent growth in PARCO’s business and introduction of new projects has
enabled the Company to generate direct and indirect employment opportunities across the
country especially in remote and underdeveloped areas. PARCO’s human resource base is highly
skilled and uniquely talented and frequently finds employment opportunities in the lucrative Gulf
markets, enabling PARCO to claim that it has been contributing towards country’s foreign
exchange earnings.
13.7 PARCO, an Energy Company
PARCO is a key player in the country’s strategic oil supply and its logistics, with an
integrated network which includes 120,000 bpd refinery, 2000 km of oil pipeline, 1.5 million
tons of storage, and a rapidly expanding retail network of TOTAL PARCO (TPPL) – a joint
venture with TOTAL of France. With the acquisition of Chevron’s fuel business in Pakistan,
TPPL is now the second largest Oil Marketing Company in the country. PARCO is also
marketing nationwide LPG under the brand of Pearl Gas and fuel oil under the brand of Pearl
fuels. High quality asphalt is also being marketed as Biturox.
13.8 Pipeline Network
PARCO is the largest operator of cross country crude oil and product pipelines network
of over 2000 km. It has become vitally important, for country’s oil logistics in the Central and
Northern areas and has resulted in major savings in freight expenses.
13.8.1 Karachi-MahmoodKot Pipeline (KMK)
PARCO transports crude oil from Karachi to Mahmood Kot near Muzaffargarh for its
Mid-Country Refinery (MCR) through its 870 km, 16” dia Pipeline, commissioned in 1981. The
original pumping capacity was 3.0 million tons per annum (MTPA) however, after the
technological up-gradation of the system is now capable of pumping up to 6 MTPA.
Imported Crude oil received through KPT’s jetty at Keamari and transported to Korangi for
onward transportation to MCR through Booster Pumping Stations.
13.8.2 Mahmood Kot-Faisalabad-Machhike Pipeline (MFM)
PARCO’s 362 km, 18” & 16” dia. MFM pipeline was commissioned in June 1997 and is
transporting Diesel and Kerosene from Mahmood Kot to Faisalabad via Kot Bahadur Shah and
onwards transportation to Machhike. Refined Products are received from MCR as well through
White Oil Pipeline (WOP).
The installed capacity of MFM pipeline is approximately 5 MTPA and its pipeline design allows
for laying and tie-in of future spur lines from Faisalabad to Kharian and Sahiwal subject to
commercial feasibility.
13.8.3 White Oil Pipeline (WOP)
PARCO operates and maintains the 786 km, 26” dia White Oil Pipeline (WOP) which
was commissioned in March 2005 with an installed capacity of 8 MTPA, and can be upgraded to
12 MTPA with the addition of booster pumps. The WOP is owned by Pak-Arab Pipeline
Company Limited (PAPCO), a joint venture between PARCO (51%), Shell Pakistan Ltd (26%),
Pakistan State Oil (12%) and TOTAL PARCO Marketing Ltd (11%).
13.8.4 Korangi-Port Qasim Link Pipeline (KPLP)
The 22 km, 26” dia pipeline linking PARCO’s Korangi Station with PAPCO’s Port
Qasim Station is a bi-directional pipeline which was commissioned in March 2006. The strategic
link has connected both the Karachi ports of Keamari and Port Qasim with the PARCO and
PAPCO pipeline systems, providing flexibility in pipeline operations to receive crude as well as
product from either port.
13.9 Mid-Country Refinery
PARCO's Mid-Country Refinery (MCR) is the country’s largest and most complex
refinery employing state of the art primary and secondary processing facilities. MCR was
completed commissioned in year 2000. The capacity has recently been revamped from 100,000
bpd to 120,000 bpd. It represents about 25% of the indigenous refining capacity of the country
and helps in substituting imports of value-added refined products.
PARCO is the first refinery to produce environment friendly Euro III compliance diesel.
The air emissions and water quality discharge from the refinery are regularly monitored and have
remained well within NEQS limits. To cater to the increasing production of local crude in
Pakistan, a crude decanting facility has recently been installed at MCR in collaboration with
MOL and OGDCL.
13.9.1 CRUDE FEED: Arabian Light, Upper Zakhum, Murban, DAS Crude, Local Crude and
Condensate.

13.9.2 PRODUCTS: LPG, Mogas, Kerosene/Jet Fuel 1 (JP-1) and JP-8, High Speed Diesel
(HSD)/ Light Diesel Oil (LDO), Furnace Oil, Sulfur, Asphalt.
The Refinery Complex includes thirteen Onsite Process Units besides numerous Offsite/Utilities
Units and other permanent facilities with 53 tanks to store Crude Oil, intermediate feed stocks
and finished products. Process units also include the mild hydrocraker unit Dieselmax which is
an integrated technology of mild hydrocracker and thermal cracker and is the only unit in
Pakistan to produce value added petroleum products like Diesel and Kerosene from reduce crude
oils. PARCO refinery also have state of the art CCR (Continues Catalyst Regeneration)
Platformer unit to produce high RON reformate which is used in motor gasoline blending.
13.9.3 Major Process Units:
Crude Distillation Unit (CDU), Vacuum Distillation Unit (VDU), Naphtha Hydrotreater
(NHT), CCR Platforming unit, Diesel Max Unit, Visbreaker Unit (VBU), Gas Concentration
Unit (GCU), Diesel Hydrodesulphurization Unit (DHDS), Amine Treating Unit, KeroMerox
Unit, LPG Merox Unit, Sulfur Recovery Unit, Asphalt Air Blowing Unit, Penex and Hydrogen
PSA Unit.
13.9.4 Offsite / Utilities Units:
Steam, Feed Water and Condensate Handling System, Fuel Oil and Gas System, Water
Systems, Tankage and Blending System, Product Transfer and Loading System. Flare System.
Effluent Collection, Treatment and Disposal System. Safety and Fire Fighting. Chemical
handling system and Decanting Facility.
The Refinery also operates an automated Truck Loading Gantry for supply of Petroleum
Products to Oil Marketing Companies (OMCs). Besides it is linked with PSO & JIMCO
terminals through pipelines for transfer of FO and HSD respectively.
13.10 Marketing Initiatives

13.10.1 Retail Marketing
TOTAL PARCO PAKISTAN LTD (TPPL), is a 50:50 joint venture of PARCO and
TOTAL of France is marketing consumer petroleum products through a retail outlets network
across Pakistan.
In 2015, TPPL has acquired Chevron’s Fuel Marketing Business in Pakistan. After the
acquisition, the Total PARCO retail fuel network has increased from 285 to 813 outlets and is
now the 2nd largest OMC in the country in terms of retail network.
13.10.2 Lubricants Marketing
PARCO has acquired 50% shareholding in Total Oil Pakistan Ltd, which is the 4th largest
lubricants blending and marketing in Pakistan. Along with the retail fuel business, the lubricants
business is now part of the TOTAL PARCO network.
13.10.3 LPG Marketing & Distribution
In 2012, PARCO acquired SHV Energy Pakistan, and renamed it to PARCO Pearl Gas
Ltd (PPGL). It has 5 Filling Plants and 8 Gas Distribution Centers at strategic locations
throughout Pakistan, as well as a network of over 400 distributors and is the largest LPG
Marketing & Distribution Company in Pakistan.
PPGL markets LPG under two different brands, i.e. Pearl Gas and Super Gas. Super Gas
offers customized solutions designed to cater to the requirements of industrial/commercial users.
13.10.4 Industrial Marketing
PARCO is engaged in its marketing activities through the brand name “PEARL” and has
a base of over 500 industrial customers for furnace oil, high speed diesel, bitumen, light diesel
oil and kerosene.

13.11 Progress for 2019-20
PARCO, like any professional organization, strives for self-sufficiency, mitigation of risk
and profitable operations. The salient features of the actual performance during the year are as
under:-
Sales Revenue (PKR millions) 231,608
Net Loss after tax (PKR 10,339
millions)*
Payments to GOP (PKR

millions)
Income Tax 2,519
Sales Tax 47,971
Petroleum Levy 48,622
Excise Duty 8
Dividend (expected) -
Total Payments to GOP 99,120
Refinery Production (million

tons)
Liquid Petroleum Gas 0.095
JP-1/8/Kero 0.271
Mogas 0.662
High Speed Diesel 1.223
Furnace Oil 0.592
Other 0.074
Total 2.917
Pipeline Thruput (million tons)

KMK Pipeline 2.692
MFM Pipeline 2.390
Decanting (million tons)

Korangi 2.633
MCR 0.255
* COVID-19 and exchange loss have resulted in heavy losses in overall refinery industry. Further, turnaround has
also impacted PARCO profitability.
13.12 Goals/Targets for Financial Year 20 20- 21

To focus the efforts of the company in achieving its Vision, the following Corporate Goals
have been set for the next year:-
1. Leading National Energy Company of Pakistan
2. Company of Choice for All Stakeholders
3. Diversification
4. Integration
5. Right Technology
6. Best Industry Practices
7. Sustained Competitive Advantage

In addition to the above, PARCO will continue its efforts towards the betterment of the country
as a whole with the following objectives:
• To enhance and establish a professionally sound corporate identity.
• To operate the existing Pipeline and Refining System in a manner that establishes it as a
center of excellence in Pipeline and Refining Activities in the Country.
• To embark upon an Integrated Investment Program which takes cognizance of the
existing bottlenecks and long-term petroleum needs of the Country.
• To provide a lead to the indigenous Petroleum Industry in finding of solutions to
Technical and Managerial problems.
• To develop an appropriate Human Resource for undertaking of large Energy Projects in
the Country.
13.13 On-going Projects
• MFM Mogas Project

To cater to the rapidly growing MOGAS consumption in the country, MFM pipeline has
been technically upgraded for capacity enhancement and multi-product transportation
capability of MOGAS with HSD batches, however, commissioning is expected by October
2020 in synchronization with PAPCO’s White Oil Pipeline MOGAS project and off take
connectivity with OMCs. The Project involves capacity increase, from 3 to 5 MTPA which
has been completed and upto 7 MTPA post construction of new pumping station at Kot
Bahadur Shah, new storage tanks and modifications to the overall pipeline network.
• MCR Revamp
The MCR Revamp project was executed during the refinery turnaround (TA-4) in Feb-March
2020. Project comprised of revamp of six existing process units, utilities and installation of
two new units i.e. Hydrogen Purification (PSA) & Isomerization units. The existing units
have been tested and were successfully commissioned on March 21, 2020, whereas the new
units were commissioned upon availability of Vendors in October 2020. On commissioning
of revamped units, the production has increased from 100,000 to 120,000 bpd with capability
to process more local crude/condensate and improved production yields of high-value Euro-
III fuels. This will result in positive impact on gross refinery margins and returns
• Investment in RLNG/Gas Infrastructure

PARCO, along with Bahria Foundation, completed the Front End Engineering Design study
for an LNG Terminal Project in 2018, however, the LNG Terminal Project could not be
further proceeded due to lack of connectivity for upcountry transmission. During ADIPEC
Conference 2019, PARCO and Mubadala along with BF signed a non-binding Strategic
Framework Agreement (SFA), that covers the entire LNG related project landscape. PARCO
and Mubadala along with BF, will work together for the materialization of LNG
Infrastructure project(s) after completion of the necessary studies.
• PARCO Coastal Refinery Project

The project, a 250,000 bpd grass-root green field refinery to be setup in Baluchistan. This
will be a significant addition to country’s oil refinery infrastructure, focused on Euro 5
transportation fuels for domestic consumption. The project will add approximately 11-12
MTPA, thereby reducing the demand-supply gap significantly for refined fuels along with
numerous other benefits to the country. Due to the current global economic environment, the
Board of Directors of PARCO Coastal Refinery Limited (PCRL) has decided to place the
Project on hold until further clarity is reached on the macro-economic environment, project
timetable and the refinery size and configuration.
13.14 Social Responsibility & Community Development Program

At PARCO, we believe that CSR is strategic, building long term relationships with
neighboring communities and stakeholders. As a good corporate citizen PARCO focuses on
meeting the expectations of its internal and external stakeholders and undertakes a wide range of
projects to benefit in areas of education, health, environment, vocational training, community
development, natural calamities, etc.
The social contribution by PARCO in the society it operates has been well received since
the past several years. The company is striving towards making a positive impact in the lives of
the communities by adopting the Sustainable Development Goals (SDGs). The SDGs have
already been embedded in our CSR strategy and are playing significant role in shaping a better
future.
13.15 Protection of Environment
Towards keeping the environment free from pollution, PARCO adopted the following measures.
• The state of the Effluent Treatment Plant and Emissions Control Systems ensure that the air,
water sources and subsoil strata of the Mid-Country Refinery and surrounding areas remain
free of pollutants.
• PARCO introduced lead-free Motor Gasoline four years earlier than the deadline.
• Installation of Diesel Hydrodesulphurization Plant (DHDS) reduces sulphur contents from
the High Speed Diesel at Euro II standards, ensuring cleaner environment.
• The availability of LPG in remote areas, helped save trees in Baluchistan and northern areas.
13.16 Human Capital
Through continuous new projects and expansion, PARCO has been able to provide
opportunities to existing and new talent in learning new technologies, help equip them for highly
skilled jobs that improve the standard of living; contribute towards national development and
save substantial foreign exchange. PARCO also has an elaborate Trainee Program and an
Internship Program where fresh engineers, technologists and management professionals are
provided training.
13.16.1 Education & Health
Our cross country pipeline network makes us a next-door neighbor to many remote and
underprivileged communities. Since 2007, PARCO conducts an extensive Schools & Clinics
Support Program which aims at improving the education and health infrastructure in adjoining
communities by supporting rural health clinics, primary, middle and secondary schools, being
run by Government of Pakistan.
• Up till 2020, PARCO had provided assistance to more than 100 institutions along its pipeline
and refinery across Pakistan. Thousands of children are enrolled in PARCO supported
schools. PARCO`s assistance to these institutions has raised communities` interest in sending
their children to these refurbished and well-maintained schools, diverting them from child
labor to primary education, and raising the literacy rate
• During 2020, PARCO has supported different institutions for blind, mentally challenged and
deaf children. These institutions are managed by professional NGOs and rely mostly on
philanthropic contributions. They help these children in developing skills to manage their
lives in less challenging manner. PARCO’s contribution has helped these institutions sustain
their operations even during the pandemic.

• PARCO has been distributing school bags, stationary items and notebooks in the
Government schools, supported by PARCO near its Corporate Headquarters, Mid-Country
Refinery and various Stations and Terminals since several years. This year again about 2000
bags were distributed among the underprivileged children of these schools.
• Under the umbrella of Schools and Clinics Support Program, PARCO has supported several
basic and rural health centers based in small villages nearby PARCO cross-country pipeline
and Stations and Terminals. The clinics are providing basic healthcare to the local
communities within their villages. As a result, community members are no longer required to
travel for long hours to the cities for basic treatment.
• PARCO’s Mid-Country Refinery at Qasba Gujrat is surrounded by many underprivileged
communities, deprived of the basic education and health facilities. PARCO operates a
Community Welfare Clinic to provide basic health facilities to the domestic workers working
at the Mid-Country Refinery, their families and other people from nearby areas.
• In Pakistan, there are various charity hospitals that serve the underprivileged who are not
able to afford hospitalization, treatments, medication, etc. PARCO has been helping several
such hospitals through philanthropic contributions in capacity building. The Company had
also helped several such institutions in the realm of COVID-19 pandemic.
13.6.2 Vocational Training & Entrepreneurship
One of the areas in which PARCO has been heavily investing is in fostering the culture of
vocational training and entrepreneurship. Several government vocational training centers in
Sindh and Punjab are being supported to fulfill their infrastructural needs and equipment
requirements. PARCO provided modern equipment to conduct quality trainings. The Company
has also supported students to begin their own business through equipment support program
especially to female community, thus increasing their chances of employment.
In addition, PARCO is also operating a sewing and embroidery center for woman at Qasba
Gujrat to enhance their skills through higher level of training.
13.6.3 PARCO’s Response During COVID-19
PARCO has been closely monitoring developments concerning the COVID-19 pandemic,
and took all necessary steps to ensure the wellbeing of employees and its communities around
while also preventing any potential business impact. As the energy lifeline to the nation, PARCO
has a fundamental and undeniable responsibility to the country in this hour of need and stands by
the communities it operates in. Following were the initiatives taken to ease suffering of the
needy:
• PARCO made philanthropic contributions to major healthcare institutions across the country
to help them procure necessary equipment and PPEs to ease suffering of COVID-19 patients.
• The company partnered with several reputable NGOs with good outreach to provide dry food
ration to communities in Karachi, Lahore and Quetta.
• PARCO Mid-Country Refinery (MCR) also organized dry food ration distribution for all the
underprivileged communities associated with MCR.
• Proper hand washing arrangements were made outside the entrance of Corporate
Headquarters and Mid-Country Refinery.
• The peak days of COVID-19 came during extreme summers. PARCO distributed water
bottles, hand gloves and masks to Law Enforcement Agencies (LEAs) in Karachi nearby its
Corporate Headquarters. This activity was undertaken to appreciate the LEAs for their
strenuous efforts in maintaining law and order and encouraging citizens to follow safety
guidelines for COVID-19.

CHAPTER 14
SAINDAK METALS LIMITED (SML)

14.1 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 construction work of Saindak Copper-Gold Project (SCGP) was completed by
Metallurgical Construction Corporation (MCC) of China in the year 1995 and handed over
to SML in January 1996, after successful trial production of 1,500 Tons of Blister Copper.
The project remained closed between1996 to 2002. In February 2000, it was decided by
the Federal Cabinet 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. On expiry for the
first term of 10 years on 31st October 2012 the agreement was extended for further 5 years
with the consent of Government of Balochistan and Ministry of Petroleum & Natural
Resources and on expiry of five years extension the lease agreement has been extended for
further five years with the consent of Government of Balochistan and Ministry of Energy
(Petroleum Division).
14.2 ACHIEVEMENTS FOR THE PERIOD OF 2019:

14.2.1 PRODUCTION
The SCGP remained in production during the period of January 2019 to December 2019
and following quantities were produced:
i. Copper Ore 4,231,874.00 MT
ii. Copper Concentrate 53,706.13 MT
iii. Blister Copper 13,049.33 MT
14.2.2 SALES STATUS

MRDL exported following quantities of blister copper during the year 2018.
Blister Copper 13,054.61 M Tons
14.2.3 GOVERNMENT TAXES:

The Lessee paid US$ 5,617,132 as royalty @ 5% on sale value to Government of
Balochistan. Similarly, 1% Presumptive Tax amounting to US$ 1,123,426 and EPZ service
charges @ 0.5% amounting to US$ 561,713 were paid to EPZ authorities. On account of
Corporate Social Responsibilities (CSR) US $ 959,997 paid to Government of Balochistan for
Social Upliftment Activities.

14.3 COMPANY’S 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: saindak.smlho@gmail.com, info@saindak.com.pk
b) Name of Chief Executive:
Mr. Muhammad Raziq Sanjrani
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
f) Legal Advisor:
Mr. Muhammad Riaz Ahmed
g) Company Secretary
Mr. Ghazi Khan
14.4 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).
14.5 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.
14.6 TOTAL STRENGTH OF THE MANAGEMENT:
14.6.1 EXECUTIVE / NON-EXECUTIVE STAFF:

Executives 16
Regular / Non-Executive Staff (BPS 1-16) 38
Sub-Total: 54
Contract Employees 5
Piecework basis workers/miners 13
Sub- Total: 18
14.6.2 Province / Region-wise Breakup:
Province/Region Punjab Sindh KP Balochistan AJK FATA TOTAL
Officers - 3 1 11 1 - 16
Regular / Non-
Executive Staff 1 1 3 31 2 - 38
(BPS 1-16 Staff)
Sub Total: 1 4 4 42 3 - 54
Contract
- - - 5 - - 5
Employees
Piecework basis
- - - 13 - - 13
workers/miners
Grand Total: 1 4 4 60 3 - 72
14.6.3 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 Manage Sr. Officer, TOTA
MD Secretar r Store
y/Post r Account Engineer L
y/ G.M (Mining Officer,
(Cord.) s ,
(F) ) Asstt
Officer Geologis
Engineer
t
Head
Office, 1 1 - 1 - 6 7 16
Quetta
Branch
Office,
- - 1 - - - - 1
Islamab
ad
Grand
1 - 1 1 - 6 7 16
Total:
14.6.4 Category and post-wise breakup of contractual officer’s strength
Compan Manager Audit

Chief Assistant
Category/P y (Finance) Officer Principal
Engineer Manager
ost Secretar (TTC)
Mining (Admin)
y
Head -
Office, 1 1 1 1 -
Quetta
TTC - - -
- - 1
Dalbandin
Grand 1 1 1
1 1 1
Total:
14.6.5 Breakup of regular / contractual / piecework basis workers etc.
Head Office, Quetta 46

Branch Office, Islamabad 8
Contract Employees 5
Total: 59
14.7 Corporate Social Responsibility (CSR) Activities for Social Uplift of the local
Community:
✓ Since 2002, MRDL in close collaboration/coordination with Saindak Metals Limited

(SML) has spent Rs. 618.932 Million on CSR related activities, including, Health,
Education, Power Generating, Communication, Water Supply Schemes, Infrastructure,
Employment etc. Since 2013 till 2017 MRDL has paid US$ 5.501 Million to Government
of Balochistan for CSR related activities.
✓ 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.
✓ 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).
✓ Providing Scholarships to the talented students around Balochistan, particularly focusing
from District Chagai, to various reputed Schools & Cadet colleges around the country. The
management took the initiative to boost up the quality education in the area and to
encourage the education among the masses of the district by launching a Scholarship
Scheme in 2010. Majority of the students belong from Balochistan province, out of which
approximately 90% of the students are mainly focused from district Chagai.
✓ Construction and establishment of a state of the art Technical Training Centre at
Dalbandin, to enhance the technical skills of the local youth of the region in exploring and
exploiting the natural resources of the mineral rich District as well as creating job
opportunities. The Managing Director SML with coordination of MRDL management
established the TTC at Dalbandin with a positive approach for providing technical and
professional skills to the unskilled youth particularly in the Mineral and Mining fields to be
helpful in exploring the natural rich resources of the district. The Centre would further help
in strengthening the economy of the country in particular and a source for job opportunities
for the demoralized youth of the area in general, this ingenuity will also attract foreign
investors in mining sector to invest in establishment of mining companies where local
technical human resource would be available which ultimately would lead to development
of the area.
✓ Repairing and restoration of a 15 kilometer road from Taftan to Saindak for easy trouble
free easy access;
✓ Out of 1,800 employees at Saindak project; around 1500 employees belonging from
District Chagai.
✓ Basic necessities of life such as; Clean Drinking Water are lacking in the district of Chagai.
In this connection, SML in close collaboration with Government of Balochistan initiated a
Clean Drinking Water Supply Project for the inhabitants of the area. SML and Public
Health Engineering (PHE) Department, GoB started a project for providing drinking water
from Gath Baroth from a distance of approximately 64 KM away from Nokkundi with a
cost of Rs. 406.590 Million and by the grace of Al-mighty ALLAH the project is
successfully completed and functional.

✓ 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).
✓ During the recent COVID-19 Pandemic, SML Provided Rs. Ten (10) million for provision
of ration and other needs to the deserving people of District Chagai in the prevalent crisis
due to COVID-19 Pandemic induced lockdown through the Provincial Disaster
Management Authority (PDMA) Balochistan.
✓ A sum of Rs. 10 Million were granted to Balochistan University of Information
Technology, Engineering and Management Sciences Quetta (BUITEMS) for purchase of
DNA extraction kit for Forensic DNA Lab at BUITEMS.
14.8 PAYMENTS TO NATIONAL EXCHEQUER 2019
Particulars US $
Royalty 5,617,132
Development Surcharges 561,713
Presumptive Tax 1,123,426
SML Share of profit 9,119,963
GoB Social Upliftment 959,997
14.9 ACTIVITIES/PROPOSALS TO BE UNDERTAKEN FROM 2019-20
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 up to 31st October 2022. The remaining mineable ore of South and North ore
body will sustain the project up to the mid of 2021. On 23rd January 2019 MRDL submitted
Design Scheme of Supplementary Geological Exploration for Saindak East Ore Body. As per
plan, 23 exploratory holes (7551m) drilled for copper & gold along with combination analysis
elements for Moly, S and Ag. The exploratory drilling was started on 1st March 2019 and was
completed on May 21st 2019. Due to mineralization conditions, the exploratory holes were
increased up to 46 at the depth of 10875.25 meters. The Pre-Feasibility Study Report (PFSR) for
mining of East Ore Body (EOB) of Saindak project submitted by MRDL in August 2019. The
salient feature are as below;
•. The estimated ore reserves including measured, indicated and inferred ore of EoB at
0.25%Cu cutoff is about 358 million tons @ 0.36% Cu.
•. The mineable ore reserves with in UPL stands at 81.148 million tons @ 0.374% Cu on
0.25% Cu cutoff grade and 86.092 million tons of waste with an average stripping
ratio of 1.06 t/t.
• Development work of EoB will include stripping work of 20.7 million tons including 2
million ton byproduct ore, 1.1 km road from mining area to waste dump and primary
crusher, new waste dump and tailing pond needs to be constructed.
• The Copper metal price calculated for the project economic effect is 6318 $/t.
• Annual output of blister copper is 13203 tons, annual operating revenue is $
82165000; total cost is $ 76539000, operating tax expenses and additional expenses is
$ 53441000.
• After the Technical evaluation committee (constituted by SML Board) review the Pre-
Feasibility Study Report (PFSR) submitted to SML and reply of MCCT China on TEC
report, the annual profitability has increased from US$ 285000 to US $ 6.95 million
NPV increased from –ve US $ 26.962 to +ve 36.603 million. The payback period
reduced from 19 years to 11 years, IRR improved from 3.16% to 14.63% and also the
maintenance cost has been reduced from US $ 9.1 million to US $ 7.649 million.
• Keeping in view the time factor and the existing ore reserves at Saindak project, EOB
development is the sole and only solution to the sustainability of the project and
looking to the prevailing economic situation in the country where unemployment is at
peak the project is not only providing employment to the youth but also generating
profit for the country.
ii. Induction and Preparation of exploration team;
The SML board in its 134th Meeting held 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. 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 Government of Balochistan which was approved. But unfortunately the PL
license was cancelled in 2010, SML lodged appeal with Secretary Mine and Minerals GoB,
which is still pending.
SML BOARD OF DIRECTORS
1 Mr. Muhammad Raziq Sanjrani

Managing Director, Saindak Metals Limited
2 Ms. Saira Najeeb Ahmed

Additional Secretary (I&JV), MoE (PD)
3 Mr. Muhammad Iqbal
Director General (Mineral), Ministry of Energy (Petroleum
Division)
4 Mr. Farhan Shafi
Managing Director, PMDC
5 Director General
Geological Survey of Pakistan, GoP
6 Mr. Abdul Rehman Buzdar
Addl. Chief Secretary (Dev.)
Development, GoB
7 Syed Zafar Ali Bukhari
Secretary, Mines & Minerals Department, GoB

CHAPTER 15
http://www.pmdc.gov.pk
PAKISTAN MINERAL DEVELOPMENT CORPORATION (PVT) LIMITED (PMDC)

15.1 Introduction
Pakistan Mineral Development Corporation (PMDC) is a commercial organization 100%

owned by the government of Pakistan and is working under administrative control of Ministry of
Energy (Petroleum Division). The corporation is as registered private limited company
established in 1973 with an authorized capital of Rs.1,000 million. PMDC is engaged in
prospecting, exploration and evaluation of economic mineral deposits, preparation of techno-
economic feasibilities, mining and marketing activities. The company is operating five (5) Salt
Mining Projects, three (3) Coal Mining Projects and Silica Sand quarry and other joint venture
projects; on Soap Stones and Lead-Zinc.
15.1.1 Mining and Exploration
PMDC is well known for mineral prospecting, exploration, development and execution of
mining projects. This organization prepares techno-economic feasibility reports of mineral
resources on the basis of exploration data in Pakistan and work on all kind of processing of
metallic and non-metallic minerals in partnership with private and state owned foreign mining
companies.
15.1.2 Disclosure of Resources and Responsibility
PMDC is a responsible organization for undertaking industrial based approved plans of

planning commission of Pakistan and to comply with the relevant planning regulations according
to the national mineral policy. Mineral exploration projects have been established with the equity
funding or loan allocations by the government of Pakistan.
15.1.3 Investment in Joint Venture Mining Projects
Since its inception, PMDC has executed twenty-six (26) joint venture mineral exploration
projects in Northern Areas of Pakistan, Azad Jammu & Kashmir, erstwhile FATA, Baluchistan,
and Provincially Administered Tribal Areas (PATA). These projects have been undertaken in JV
with other federal organizations, provincial governments of Pakistan, and international mining
companies like M/s PASMINCO (Australia), a state-owned Chinese mining company, MCC
China Metallurgical Corporation. PMDC also participated in execution of joint venture mineral
projects in association with defunct FATA-DA.
15.1.4 Consultation Services
PMDC has also been providing consultation services to mining companies, cement
factories and chemical industries in the following disciplines:
a) Mineral exploration and evaluation for extraction and processing

b) Geochemical exploration of minerals
c) Mineral resources evaluation and mine survey
d) Mine feasibility studies and mine development
15.2 Corporate Profile

Name of the company Pakistan Mineral Development Corporation (Pvt) Ltd.
Registered office Head Office, 13 -H/9, Islamabad.
Name of Chief Brig. (R) M. Iqbal Malik, SI (M), CEO/ Managing
Executive Director
Type of company Private Limited Company, 100% Owned By GOP.
Auditors M/S. Grant Thornton Anjum Rahman, CAs, Islamabad.
Legal advisor Mr. Majid Bashir, Advocate, Islamabad.
Bankers National Bank Limited and Habib Bank Limited.
15.3 List of Board of Directors as at 24.12.2020
1 Mr. Irshad Ali Khokhar Chairman Board of Directors

2 Mr. Muhammad Iqbal Malik CEO/ Managing Director
3 Ms. Shahnaz Akhtar Director
4 Mr. Muhammad Iqbal Director
5 Ms. Siara Najeeb Ahmed Director
6 Ms. Huma Ejaz Zaman Director
7 Mr. Ejaz Ali Khan Director
8 Mr. Muhammad Daud Director
15.4 HR Structure of the Corporation
Non-
Technical Security Total
Technical
Officers 37 60 - 97
Supervisors 32 10 - 42
Regular 271 352 117 740
Staff
Contingent 164 246 106 516
Total 504 668 223 1,395
15.5 Achievements (Review Report) 2019-20
15.5.1 Production/ Sale Performance Review 2019-20

The economic survey of industries has witnessed the impact of lockdowns in 2019-20 COVID-19
pandemic due to which the production and marketing activities of PMDC have also been suffered.
Overall, COVID-19 pandemic challenged PMDC operational matters during 2019-20.
15.5.2 Coal Production Sales/ Performance
PMDC is pioneer in coal mining in Pakistan and operating 3-Coal Mine Projects. All of the three
projects are located in Balochistan in vicinity of provincial capital Quetta. The Coal is lignite to sub
bituminous, the calorific value ranges from 3,000-7,000 kcal. PMDC has a total lease area of 18,000
acres. PMDC has established it in the indigenous coal market as a reliable and trusted supplier. Coal
supplies are maintained through mining operations carried-out at coal projects. The coal is supplied to
customers which is used as fossil fuel. Coal based Industries include; Cement factories, electricity
generation plant and countrywide brick kilns etc. The Annual supplies of coal remained 0.350 million ton
during 2019-20.

S.N Coal Mining Projects % of total Sale/Prod
1 Degari 04%
2 Sor Range 22%
3 Shahriagh 74%
15.5.3 Rock Salt production/ Sales Performance
PMDC having the world’s largest Pink Rock Salt mines with estimated reserves of more than
22.22 billion Tons. PMDC is operating 5-Rock Salt Mine Projects. PMDC Rock Salt is truly unique
which contains natural minerals and trace elements including Calcium, Magnesium, Potassium and Iron.
There are four different types of Rock Salts; Crystal White, Light Pink, Dark Pink and Greyish.The purity
levels of these rock salts can go up to 99.3% (as certified by the Pakistan Council of Scientific and
Industrial Research (PCSIR). PMDC’s Rock Salt is 100% natural and directly crushed for human
consumption unlike sea Salt and has multiple health benefits.
Rock salt production/sales remained 83% against annual target. PMDC sell edible grade Salt in
local market as well exports value added products directly. Private dealers purchase Rock Salt from
PMDC for local and export purpose. The consumers of PMDC Industrial grade Rock Salt include major
chemical industries in the country including; ICI, Sitara Chemicals, Olympia Chemicals, Itehad
Chemicals and small-scale industrial units; ice factories, and tanneries. PMDC produce around 40% of
Pakistan annual total Rock Salt production. PMDC total Sales of Rock Salt remained 1.385 million ton
during 2019-20.
S.N Salt Mining Projects % of total Sale/ Prod

1 Khewra 24%
2 Makrach 6%
3 Warcha 49%
4 Kalabagh 14%
5 Jatta/ B.Khel 7%
15.5.4 Financial Review 2019-20
A- FINANCIAL REVIEW 2019-20 PKR. MILLION

Sales revenue 2,432.621
Pretax profit 390.003
Post tax profit 292.848
Shareholders’ equity 10
B- Financial ratios
Earnings per share basic/ diluted dividend per share % 292.85
Debt to equity ratio 0.52
Current ratio 3.26
Interest cover ratio (no. of times) 0
Fixed assets turnover ratio (times) 7.43
D- Percentage sales revenue
Selling & distribution to sales revenue % 6.04
Financial charges to sales revenue % 0.04
Return on equity % 14
III. Contribution to national exchequer 2019-20 Rs. million
Income tax 74.05
Royalty 122
Excise duty 6.93
Sales tax 368.85
Total 571.83
15.6 Progress during the year 2019-20
15.6.1 Progress of Activities (Growth-Development)
PMDC has achieved desired physical and financial performance in spite of constraints of
pandemic COVID-19, with no standing loan liability and bank borrowing.
15.6.2 Corporate Social Responsibility Contribution (CSR) 2019-20
PMDC has spent total amount PKR 56.201 million on CSR activities in 2019-20 as laid
down in the principles of policy articles 38, “promotion of social and economic wellbeing of
people” of Constitution of the Islamic Republic of Pakistan. Following is the detail:
15.6.3 Community Development Programs (CDPs)
PMDC is rendering Community Development Programs (CDPs) for the socio-economic

development of mining community at its operational projects.
i. Standard educational institutes are providing quality education to the children of

employees and other inhabitants of adjoining areas at nominal charges being public
welfare contributions which stimulate development of communities in the remote
areas of Pakistan.
ii. Participation in trainings is provided for skills development and observance of

mining techniques for mining staff.
15.6.4 Medical coverage to the Miners
i. Miners are provided medical coverage as per mining concession rules, 2002.
ii. Workmen’s compensation act, 1923 provides compensation and financial

assistance package of accidental cases.
iii. Rescue stations of provincial governments are set up at mining points.
iv. Mine safety equipment kits are placed for emergency use along with first aid
medical facility. Ambulance service is readily provided for emergency at all
mining projects.
15.7 Health Safety and Environment Management System (HSEMS)
15.7.1 Health Safety

This is responsibility of management and employees to ensure the health and safety
protection in all functions. In this regard PMDC has established new dedicated health safety and
environment management system (HSEMS) under supervision of HSE department. Health and
safety awareness policy has been formulated to disseminate among employees. Workers have
been briefed in Urdu. They are given broachers after converting and printing into Urdu language
for better understanding at all levels especially to face the pandemic COVID-19.
We are committed to foster a work place culture, where our principle concern is to
guarantee physical integrity of our employees in congenial work environment which promotes
excellence and implementation of health safety and environment management system in the
areas of its business operations. Development of framework to review performance excellence,
risk assessment and to be prepare for prevention of unsafe conditions including dissemination of
unpreventable injuries, environmental damages and occupational illnesses and prevention of
contagious diseases in employees.
15.7.2 Other HSE innovations:
i. HSE team has been organized besides organizing HSE management system training
workshops to HSE team. Formulation of HSE manual and procurement of standardize
PPEs have been initiated and exhibition of public notice, safety signs & mine plates
having PMDC logos showing mines names and safety precautions’.
ii. Project’s management have been solicited to initiate monthly evidence based reporting on
account of leading/ lagging indicators including incidents occur at projects (LTI, MT &
fatality) within 24 hours and investigation report with pictorials.
iii. Risk assessments are conducted prior to initiation of risky activities to identify the
dangers to reduce risk of injury and occurrence of unsafe. This includes identifying
hazards, creating controls to keep workers safe on their job.
iv. HSE department has arranged to sit with raising contractors at projects to sensitize the
post fatality scenarios and some standard HSE clauses have been added to all
forthcoming contracts with raising contractors.
15.8 Major minerals exploration projects completed by PMDC as executing agency:
15.8.1 Defunct FATA Development Authority sponsored Exploration Projects:

a) Exploration and Resource Estimation of coal in Shirani area F.R.D.I. Khan.
b) Exploration & Mining of Copper Project of North Waziristan
c) Exploration & Development of Soapstone, Kurram Agency, and erstwhile FATA-DA
& PMDC are equity shareholders.
d) Exploration of Coal deposits, Kurram/ Orakzai Agencies, defunct FATA-DA &
PMDC equity shareholder.
15.8.2 Exploration Project in partnership with Provincial Governments:

a) Exploration at Duddar Lead-Zinc Project, District Lasbella, Baluchistan,
b) PMDC & Baluchistan Development Authority (BDA) are equity profit sharing
partners.
c) Exploration of Rock Salt Resource, Kohat, PMDC & Sarhad Minerals Authority, KPK
are equity shareholders.
d) Lakhra Coal Development Company (LCDC), PMDC & Govt. of Sindh and WPDA
are equity shareholders.
15.9 Program of Activities & Targets set-out during 2019-20:
15.9.1 Program of activities with a particular long-term planning

Besides setting yearly production and revenue targets, PMDC recognizes that in
competing business environment it has to take number of initiatives to keep it commercially and
financially viable. Accordingly, PMDC is determined to do all possible efforts to maximize the
revenue and has developed a multipronged approach with the categorization of business
development initiatives as Low-Lead and Low Investment Projects as well as Long Lead Time
and High Investment Projects:
▪ Revenue Enhancement in Existing Business Lines

▪ Better pricing
▪ Advantageous commercial arrangements
▪ Efficient commercial negotiations
▪ Projects of Value addition within Existing Business Lines
▪ Revival of Existing Operating Projects
▪ Metallic Mining
▪ Mineral Base New Business
▪ Quality Certifications for value addition

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:

Quantity of LNG Imported in FY 19-20 Value of LNG Imported in 19-20
(Metric Tonnes) (Million USD)
2,328,887 779.56*
* 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.

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

17.1 INTRODUCTION
Pakistan LNG Terminals Limited (“PLTL”) was established in December 2015 with a mandate
to establish LNG terminals and to procure entire regasification capacity.
With the start of its commercial operations since January 4, 2018, PLTL, being the operation
manager of 2nd LNG terminal of Pakistan, has facilitated the energy sector and played its part in
curtailing the energy crises faced by the country.
As a public sector organization, PLTL endeavors to establish and maintain the LNG
infrastructure and regasification operations in Pakistan to provide cheap energy to the end
consumer.
17.2 OVERVEIW OF FINANCIAL AND OPERATIONAL PERFORMANCE

2020 2019 2018 2017 2016
Ratios
Profitability Ratios
Gross Profit Margin % 3 4 3 0 0
Operating Profit Margin % 2 3 0 0 0
Net Profit Margin % 2 2 (2) 0 0
Investors' Ratio
Earning / Loss per Share PKR 163 170 (55) (70) (41)
Liquidity Ratio
Current Ratio times 1.27 1.07 0.83 0.08 0.7
Operational Performance
Cargoes Handled No. 37 43 22 0 0
LNG Volume Million Tons 2.3 2.7 1.4 0 0
Capacity Utilized % 50 58 53 0 0
Average Re-gas Rate mmcfd 302 350 316 0 0
The net revenue of PKR 14 billion for the financial year 2019-2020 was 18% higher than PKR
12 billion recorded for the year 2018-2019. The growth is attributable to higher exchange rate.
The company has handled 2.3 million tons of LNG on its terminal with an average re-gas rate of
302 MMCFD during the current financial year a decrease of 15% owing to reduce demand of
RLNG from SNGPL.
The operating profit for the year is PKR 288 million at operating profit margin of 2%. During the
year the company has repaid the long-term loan of PKR 40 million resulting into decrease in
financial expense by 25%. The company reported a profit of PKR 245 million in FY2019-20 a
decrease of 4%. The net equity of company has increase to PKR 365 million as compared to
PKR 4 million in last financial year.
Earning per share of the company is PKR 163. Gross profit ratio has reflected a marginal
decrease of 1% since the last year owing to low utilization of terminal. However, Net profit
margin for the current year remains at 2%. Current ratio has increased by 19% to 1.27 over the
last year. On average receivable and payable period days are 30 days.

17.3 SUMMARY OF FIVE YEARS FINANCIAL DATA
All amounts are in PKR Thousands 2020 2019 2018 2017 2016
Balance Sheet
Non-Current Assets 11,982 15,797 16,576 18,821 0
Cash and Bank Balance 527,062 379,112 68,927 11,878 106,573
Current Assets 1,547,383 1,537,725 1,096,558 3,234 1,195
Long Term Liability 84,500 129,332 15,444 0 0
Current Liabilities 1,636,434 1,783,523 1,401,491 186,334 154,491
Accumulated Profits / (Losses) 350,493 4,780 (249,875) (167,371) (61,724)
Net Equity 365,493 19,780 (234,875) (152,371) (46,723)
Statement of Profit and Loss
Revenue 14,455,737 12,156,301 5,067,003 0 0
Cost of Service (13,976,534) (11,673,968) (4,892,556) 0 0
Gross Profit 479,203 482,333 174,447 0 0
Admin Expenses (191,139) (108,924) (191,548) (108,091) (63,162)
Earnings before Interest & Tax 360,594 424,299 (7,557) (105,648) (61,724)
Finance Cost (14,881) (19,775) (11,610) 0 0
Taxation (100,622) (149,868) (63,338) 0 0
Net Earnings / (Loss) 245,091 254,656 (82,505) (105,648) (61,724)
Statement of Cash Flow
Cashflows from Operating Activities 268,667 313,370 (7,597) (139,338) (1,289)
Cashflow from Investing Activities (844) (3,185) (1,354) (19,102) 0
Cashflow from Financing Activities (120,873) 0 66,000 63,745 107,862
17.4 OPERATIONAL PERFORMANCE AND BUSINESS DEVELOPMENT

Capacity Underutilization has been a key concern since start of commercial operations
from 4th January 2018. PLTL strived hard to maximize the capacity utilization through different
proposals presented to the Ministry of Energy (Petroleum Division) for;
1. Optimization of existing utilization at both terminals (A potential of US $ 6.2 million

p.a.) if both terminals are under one control (novation of terminal 1)
2. Optimum utilization of idle terminal capacity with a potential of reducing the burden to
end-consumer to the extent of US $ 1.14 million per cargo which arises due to capacity
payments.
and suggested that in order to minimize the idle capacity, Terminals may be allowed to provide
regasification services to interested private parties. Resultantly ECC has allowed sale of idle
capacity to private parties through its decision dated 28th July 2020, which will be implemented
by Pakistan LNG Limited a sister concern in light of decision. The terminal tariff to end
consumer was $0.9340 / mmbtu in FY 2019-20. It is envisaged that with sale of idle capacity
consumer end tariff will decrease by 45% to $0.42 / mmbtu.

Capacity Utilization and Tariff
200% $1.8875
$1.7200
180% $1.3656
160%
140% $1.1027 $1.0421
120%
100% $0.8215
$0.6599 $0.5668
80% 82% 84% 84%
55%
60%
40% $0.4682 $0.4569 $0.6708

$0.4460 63%
57%
20% 45%
33% 35%
26% 20% 19%
0%
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Utilization TARIFF/MMBTU
17.5 SIGNIFICANT PLANS REGARDING CORPORATE RESTRUCTURING

ALONG WITH FUTURE PROSPECTS
Ministry of Energy (Petroleum Division) vide its letter dated February 6, 2018 had
directed to merge the Company with Pakistan LNG Limited (PLL), an associated company. In
this regard a presentation to Joint Boards of the Company, PLL and Government Holdings Pvt
Limited (GHPL- The Parent Company) has held about the economics of merger. The Board of
directors of parent company has accorded its principle approval and referred the matter to
Economic Committee of Cabinet (ECC) for formal approval. The Federal Government through
its letter dated 2nd January 2020 has formally accorded approval of merger. The final scheme of
amalgamation/merger and its effective date is being finalized. In the meanwhile, the Company
continues to operate on going concern basis.
17.6 FUTURE OUTLOOK
PLTL has approached Ministry of Energy (Petroleum Division) to utilize the idle capacity of
Terminal-2 which will reduce the payments for idle capacity by $ 16.7 million per annum and
will bring down the end consumer tariff to $0.42/mmbtu. PLTL revenue is estimated to increase
by $1 million by availing the opportunity.
17.7 COMPANY INFORMATION
Composition of the Board of Directors

Mr. Asim Murtaza Independent Director Chairman
Mr. Zahid Hussain Independent Director Director
Mr. Saeed Akhtar Chughtai Independent Director Director
Mr. Masood nabi Non-Executive Director MD & CEO, GHPL
Mr. Muhammad Ayub Chaudhry Non-Executive Director Additional Secretary Petroleum
Mr. Omar Hamid Khan Non-Executive Director Secretary Finance
Mr. Nadeem Nazir Executive Director Acting MD & CEO, PLTL

Composition of the Committees of the Board
Audit & Risk Management Committee
Mr. Saeed Akhtar Chughtai Chairman Independent Director
Mr. Masood Nabi Member Non-Executive Director
Mr. Omar Hamid Khan Member Non-Executive Director
Human Resource and Nomination Committee

Mr. Zahid Hussain Chairman Independent Director
Mr. Saeed Akhtar Chughtai Member Independent Director
Mr. Muhammad Ayub Chaudhry Member Non-Executive Director
Procurement Committee
Mr. Zahid Hussain Chairman Independent Director
Mr. Saeed Akhtar Chughtai Member Independent Director
Mr. Muhammad Ayub Chaudhry Member Non-Executive Director
Executive Management
Chief Executive Officer Mr. Nadeem Nazir (Acting Charge)
Chief Financial Officer Mr. Nadeem Nazir
Company Secretary Mr. Waqas Ghazi (Acting Charge)
Chief Internal Auditors A. F. Ferguson & Co., Chartered Accountants
Bankers National Bank of Pakistan

Bank Alfalah Limited
United Bank Limited
Auditors and Advisors

External Auditors Deloitte Yousaf Adil, Chartered Accounts
Internal Auditors A. F. Ferguson & Co., Chartered Accountant
Legal Advisors Liaquat Merchant Associates / Orr Dignam & Co
Tax Advisors A. F. Ferguson & Co., Chartered Accountant
Registered Office Address 5th floor, Petroleum House, Ataturk Avenue, G-5/2, Islamabad

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YEAR BOOK

S# Description Page No.

17. PAKISTAN LNG TERMINALS LIMITED………….………… 110

c. The relevant statistics properly tabulated.

Islamabad: 2021 Mr. Ali Raza Bhutta

Ministry of Energy (Petroleum Division) Year Book 2019-20 1

1.2 MISSION STATEMENT

1.3 STRATEGY TO ACHIEVE THE MISSION

• To adopt an integrated approach for promoting exploration and fast track

1.4 FUNCTIONS OF THE DIVISION

i) Policy, legislation, planning regarding exploration, development and

3. i) Administration of Marketing of Petroleum Products (Federal Control) Act

ii) Matters relating to Federal investments and undertakings wholly or partly

5. i) Coordination of energy policy, including measures for conservation of

6. Central Inspectorate of Mines, Islamabad.

1.5 ORGANIZATION OF THE DIVISION

Ministry of Energy (Petroleum Division) Year Book 2019-20 3

1.5.1 ADMINISTRATION WING

• Personnel and general administration of the Ministry (Secretariat), alongwith

• 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

• All matters relating to the Parliament Business.

1.5.2 DEVELOPMENT WING

1.5.3. MINERAL WING

Mineral Wing is a technical arm of the Division head by Director General

1.5.4 POLICY WING

The Policy Wing comprises of (i) Directorate General of Petroleum Concessions,

1.5.5 ATTACHED DEPARTMENT, AUTONOMOUS ORGANIZATIONS,

• Geological Survey of Pakistan (GSP) [Attached Department].

1.6 WEBSITE OF THE DIVISION

Ministry of Energy (Petroleum Division) Year Book 2019-20 6

Ministry of Energy (Petroleum Division) Year Book 2019-20 7

Ministry of Energy (Petroleum Division) Year Book 2019-20 8

H. Approval and implementation of plan for large-scale mining in Balochistan. A dedicated

Ministry of Energy (Petroleum Division) Year Book 2019-20 9

2.2 POLICY WING

Oil Marketing & Refining Policy

Ministry of Energy (Petroleum Division) Year Book 2019-20 10

i. 20 years income tax holiday.

Ministry of Energy (Petroleum Division) Year Book 2019-20 11

ACHIEVEMENT DURING THE YEAR 2019-20

4) Enhancement of Storages Capacity

2. HSD 1,342,251 1,442,457 105,206

Ministry of Energy (Petroleum Division) Year Book 2019-20 12

Natural Gas is a clean, efficient, economical and environment friendly

1. SECTORAL GAS CONSUMPTION

2. NEW CONNECTIONS ACHIEVEMENTS

3. COMPANY-WISE TRANSMISSION AND DISTRIBUTION PIPELINES

4. NATURAL GAS ALLOCATION AND MANAGEMENT POLICY, 2006

Ministry of Energy (Petroleum Division) Year Book 2019-20 14

Domestic and Commercial Sectors First

Power Sector and Zero Rated Industry Second

General Industry, Fertilizer & Captive Power Third

Cement Sector including its Captive Power Fourth

CNG Sector Fifth

2.2.3 DIRECTORATE GENERAL OF LIQUEFIED GASES (DG LGs)