Sui Gas Field

Production

Sui gas discovery has been the biggest discovery of natural gas ever made in Pakistan till date, with total
proven gas reserves of around 12TCF. It is located in Dera Bugti district of Balochistan province. The field
was discovered in late 1952 and the commercial production began in 1955. Since then the field has
played vital role in meeting the countrys energy needs and economic development of Pakistan.
Today, the remaining reserves of the Sui gas field (SGF) are estimated around 1.5TCF and during
FY16M9, the field has produced around 440 MMSCF of natural gas daily from 87 operating wells. Despite
depleting reserves over the period of time, the field remains the flagship field of PPL and the second
largest natural gas producing field in Pakistan. The field is having the countrys largest gas compressor
station and a purification plant.

The Sui name has become synonymous with natural gas in Pakistan. Located at a distance of about
650 kilometres(km) from Karachi in Dera Bugti, Balochistan, Sui is Pakistan Petroleum Limiteds flagship gas field. As
a major production facility, Sui Gas Field (SGF) hosts the countrys largest gas compressor station and a purification
plant.
At the time of its discovery, SGF was considered among the largest natural gas fields in the world with recoverable
reserves of around 12 Tcf. Despite diminishing reserves over time, SGF still remains one of the largest natural gas
producing field in Pakistan, contributing substantially to the countrys requirements with daily production of around
438 MMscf.
In order to meet contractual delivery demand for gas sales, drilling and work overs are planned at SGF to counter
obsolescence and enhance production efficiencies. To this end, Sui-96(M) and Sui-94(U) were drilled and completed
successfully while drilling of Sui-95 (Deep-2) is in progress. Work overs of Sui-33(U/M), Sui-85(U) and Sui-91(U)
and deepening of Sui-80 for SML were also completed successfully.

Discovery

1952

Recoverable Reserves

11,938 Bcf*

Daily Average Production

438 MMscfd gas; 68 bbl condensate**

Producing Wells

84

*1P (proven) reserves

**Daily production figures are averaged for 9 months from July 2015 to March 2016

Pakistan Petroleum
From Wikipedia, the free encyclopedia

Pakistan Petroleum Limited

Website

www.ppl.com.pk

The pioneer of the natural gas industry in the country, Pakistan Petroleum Limited (PPL) has been
a frontline player in the energy sector since the mid-1950s. As a major supplier of natural gas, PPL
today contributes over 20 percent of the countrys total natural gas supplies besides producing crude
oil, Natural Gas Liquid and Liquefied Petroleum Gas.
The companys history can be traced back to the establishment of a public limited company in June
1950, with major shareholding by Burmah Oil Company (BOC) of the United Kingdom for
exploration, prospecting, development and production of oil and natural gas resources. In
September 1997, BOC disinvested from the Exploration and Production (E&P) sector worldwide and
sold its equity in PPL to the Government of Pakistan (GoP). Subsequently, the government reduced
its holding through an initial public offer in June 2004, which was further decreased with the initiation
of the Benazir Employees Stock Option Scheme (BESOS) in August 2009 when PPL employees
were allotted 12 percent shares from the governments equity. More recently, GoP further disinvested
its 5 percent shares, around 3.55 percent of the total paid-up capital, in PPL through Secondary
Public Offering in 2014. Currently, the companys shareholding is divided between the government,
which owns about 68 percent, PPL Employees Empowerment Trust that has approximately 7
percent being shares transferred to employees under BESOS and private investors, who hold
nearly 25 percent.
PPL has acquired 100 percent shareholding of MND E&P Limited, a company incorporated in
England and Wales. The name of the subsidiary has been changed to PPL Europe E&P Limited.
The company has also established a wholly owned subsidiary, PPL Asia E&P B.V. with corporate
seat in Amsterdam, Kingdom of Netherlands. The subsidiary will focus on exploration and production

of oil and gas in the region. PPL has assigned its interest in Block 8, Iraq, under the Exploration,
Development and Production Service Contract with Midland Oil Company, Iraq to PPL Asia E&P B.V.
PPL operates eight producing fields across the country at Sui (Pakistans largest gas field), Adhi,
Kandhkot,Chachar, Mazarani, Adam, Adam West and Shadad and holds working interest in fifteen
partner-operated producing fields, including Qadirpur the countrys second largest gas field.
As a major stakeholder in securing a safe energy future for the country, PPL pursues an aggressive
exploration agenda aimed at enhancing hydrocarbon recovery and replenish reserves. PPL together
with its subsidiaries has a portfolio of 47 exploration assets of which the company operates 27,
including one contract in Iraq, while 20 blocks, comprising three offshore leases in Pakistan and two
onshore concessions in Yemen, are operated by joint venture partners.
Over the years, PPL has developed a reliable foundation and infrastructure for providing clean and
safe energy through sustainable exploitation of indigenous natural resources while adhering to best
practices of corporate governance and employee health and safety and constraining the ecological
footprint of its operations. As a result, Monitoring and Inspection, Design and Construction, Drilling
and Well Engineering, Joint Operations, Operational Technical Support Services and Projects
departments, Mazarani, Adhi and Kandhkot fields, Sui Field Gas Compressor Station, Sui
Production, Sui Field Engineering and Sui Purification stand certified for ISO 9001 Quality
Management System.
Similarly, Kandhkot, Mazarani and Adhi fields, Sui Production, Sui Field Gas Compressor Station,
Sui Field Stores, Sui Field Engineering and Drilling and Well Engineering, Design and Construction,
Projects, Health, Safety and Environment and Exploration departments and Sui Field Hospital have
been certified for ISO 14001 Environmental Management System and OHSAS 18001 Occupational
Health and Safety Assessment Series. Sui Purification is also certified for OHSAS 18001.
PPL has played a significant role as a responsible corporate citizen since the inception of its
commercial activities inSui by establishing the Sui Model School in 1957 for children of workers and
local communities. In 2001, the PPLWelfare Trust was founded to provide geographical and thematic
diversity to the companys CSR programme, which currently includes education, health,
infrastructure development and socio-economic uplift of disadvantaged communities living in and
around its operating areas as well as other parts of the country.

Operations[edit]
Exploration
Pakistan Petroleum Limited (PPL) has an aggressive exploration programme geared to optimize
production and replenish reserves. The company has invested in acquiring state-of-the-art integrated
technology and enhancing human resource competencies to achieve desired outputs and minimize
risks through well-coordinated teamwork and strategic partnerships with local and international
Exploration and Production (E&P) companies.
The companys exploration strategy is focused on evaluating prospective areas for direct
participation and pursuing farm-in opportunities. In the last bidding round held by Government in
March 2013, PPL won 11 exploration blocks, 10 as operator and one as joint venture partner.

PPL has acquired 100 percent shareholding of MND E&P Limited, a company incorporated in
England and Wales. The name of the subsidiary has been changed to PPL Europe E&P Limited. The
company has also established a wholly owned subsidiary, PPL Asia E&P B.V. with corporate seat in
Amsterdam, Kingdom of Netherlands. The subsidiary will focus on exploration and production of oil
and gas in the region.
Currently, PPL together with its subsidiaries has a portfolio of 47 exploration assets of which the
company operates 27, including one contract in Iraq, while 20 blocks, comprising three offshore
leases in Pakistan and two onshore concessions in Yemen, are operated by joint venture partners.
Production
Pakistan Petroleum Limited (PPL) operates eight producing fields in Sui, Kandhkot, Adhi, Mazarani,
Chachar, Adam, Adam West and Kinza the first two wholly owned by PPL and has working
interest in fifteen partner-operated producing assets.
Daily gas production of PPL from its operated and partner-operated fields stands at around one
billion cubic feet (bcf) of gas per day, which translates into over 20 percent of the countrys total gas
production. The companys major clients comprise Sui Southern Gas Company Limited (SSGCL),
Sui Northern Gas Pipelines Limited (SNGPL) and Water and Power Development Authority.
On June 30, 2015 PPLs proven recoverable reserves were 3.4 trillion cubic feet (Tcf) of natural gas
and 34.15 million barrels (MMbbl) of oil/ NGL.

PPL announces countrys biggest

gas discovery in 10 years
By Saad Hasan
Published: December 16, 2015

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Find occurs in Matiari, Sindh; company says 56mmcfd of gas found PHOTO: FILE

KARACHI:

Pakistan Petroleum Limited (PPL) on Tuesday announced that it

had struck the countrys biggest gas discovery from any well in
the past 10 years, raising hopes of acceleration in drilling
activity.
The state-owned company hit a find of 56 million cubic feet
per day (mmcfd) of gas in Matiari, Sindh.
This volume might not appear big in the overall context of gas
consumption in Pakistan 4,000 mmcfd but it is still

significant since many petroleum exploration companies have

struggled to replace depleting gas fields with new finds.
New gas field discovered in Sindh

The Hatim X-1 well was spud in the Gambat South Block in
October 8 and was drilled to the depth 3,800 meters on
November 26 where tests were run to determine its potential.
Company officials say further drilling is expected to increase
the gas output to 80 mmcfd. We will drill the appraisal well in
the next three months. We wont be announcing that because
it wont be a discovery. But this is major find, said an official.
This makes the discovery large enough to meet the need of
Engros new fertilizer plant the largest in the country that
has continuously faced shutdowns due to gas shortages.
Investors reacted to the news straightaway as PPLs share
price jumped from Rs106.71 to Rs110.95 by end of business
even though the benchmark-100 index remained visibly under
pressure. A total of 3.67 million shares changed hands on
Tuesday.
PPL has drilled 11 wells so far in Gambat Block, which
straddles across three districts of Sindh including Sanghar and
Matiari. It has found hydrocarbons reserves in nine wells so far.
In August last year PPL disclosed that Sharf X-1, another well in
Gambat South, will produce 42 mmcfd with a potential to go
up to 60 MMCFD.
Favouring local investors: PPL likely to be sold in bits and
pieces

The Gambat South Block is operated by PPL with a working

interest of 65%. Joint venture partners Government Holdings
Private Limited and Asia Resources Oil Limited have 25% and
10% stake, respectively. PPL ventured into Gambat with a
bated breath since two other companies including Oil and Gas
Development Company Limited (OGDCL) had already tried
their luck and found nothing.
We learned from their mistakes. They were just drilling in the
wrong place, said a senior PPL official.
But he also attributed the high successful ratio of
advancement in seismic 3D technology, which is allowing
petroleum geologists to analyse data much more efficiently.
PPL badly needs to replenish its gas reserves. The company
has seen continuous decline in gas output in last four years.
Gas production came down to 825.48 mmcfd in 2014-15 from
1,000 mmcfd in 2011-12.
Declining price and volumetric sales of oil has also impacted
PPLs profitability. The Karachi-based company reported a 57%
decrease in profit for July-September quarter of 2015 over
same period of last year.
PPL, which has a portfolio of 47 exploration blocks, has been
aggressively searching for new hydrocarbon reserves for the
last two years to compensate for the decrease in production
from its established fields like Sui. The company has been
trying to reduce the depletion rate of its fields by installing
compressor plants and drilling more wells.

It has six producing fields including Sui, Kandhkot, Adhi,

Mazrani, Chachar and Hala and has working interest in eight
partner-operated fields.
Published in The Express Tribune, December 16 th, 2015.
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