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Our mission is to optimize hydrocarbon production and pursue an aggressive exploration programme in
the most efficient manner on the local as well as international horizons through a team of professionals
utilizing the latest developments in the exploration and production technology and maintaining the
highest standards of health, safety and environment
Introduction
Pakistan Petroleum Limited (PPL) is one of the pioneer exploration and production (E&P) companies in
Pakistan oil and gas sector. On behalf of the Government of Pakistan (GoP), the Privatisation Commission
(PC) is proceeding with a strategic sale of 51% shareholding in PPL along with transfer of management
control.
Merrill Lynch International and KASB Securities (Pvt.) Ltd. (KASB) have been appointed as the Financial
Advisor (FA) for the strategic sale. In July 2004, the GoP successfully concluded an offer for sale and initial
public offering of 15% shares of PPL on the domestic stock exchanges.
The PC invited Expressions of Interests (“EOIs”) from interested parties on February 17, 2005. The Parties
submitting EOIs were requested to submit and Statements of Qualifications (“SoQs”) by April 30, 2005
whereby eleven parties submitted SoQs to the Privatisation Commission. Six parties were pre-qualified to
continue to the next stage of the privatisation process. As of August 2006 three pre-qualified parties were
ready to proceed for the bidding. However, the privatisation process is being reviewed in the light of the
Supreme Court's judgment in the Pakistan Steel Mills case.
Company Overview
PPL was incorporated in June 1950 with the Burmah Oil Company (renamed Burmah Castrol) and GoP as its principal
shareholders.
After more than 50 years of successful operations PPL continues to be a prominent E&P player in Pakistan with:
Sui, Pakistan’s oldest and largest gas field♣ discovered and operated by PPL,
contributing 25% of Pakistan’s gas production;
Remaining proven plus probable (2P) reserves of 6.9 tcf gas♣ and 39.6 mmstb
oil/NGL) as of June 30 2005;
Average FY2005♣ production of 948 MMcfd of natural gas and 1,759 bbld of crude
oil/NGL;
FY2005 revenues of PKR 23,294 million (US$ 388 million) and♣ profit after tax of PKR
8,623 million (US$ 144 million);
♣ Significant portfolio of non-operated assets, including Qadirpur, Sawan and Miano,
Block-22 and Tal;
Strong exploration track record and♣ prospective exploration portfolio, and
Replacement of PPL’s 1982 Gas♣ Price Agreement (GPA) with the 2002 GPA allowing
gas price increases under a phased 5-year program starting July 2002.
Company History
PPL was incorporated on June 5, 1950 whereby the company inherited the assets and liabilities of the Burmah Oil
Company Limited and commenced operations on July 1, 1952. At the time of incorporation, the Burmah Oil Company
held the majority stake of 70% with GoP accounting for 30% stake and the balance held by private Pakistani
shareholders. Burmah Oil divested 6% of its shares to the International Finance Corporation (IFC) in 1982, whereas in
1997 it sold the remaining shareholding to the GoP.
In July 2004, the Government successfully concluded a 15% offer for sale and IPO of the company on the domestic
stock exchanges at PKR 55 per share. The basic issue was for 10% shares with a green-shoe option of another 5% and
the entire issue was 3.7 times oversubscribed. The current shareholders of PPL are the Government of Pakistan
(78.35%), International Finance Corporation (6.09%) and institutional and individual investors (15.56%).
Organization
The Company’s holds operatorship of major oil and gas fields including Sui, Kandhkot,
Adhi and Mazarani, while its non-operated portfolio includes interests in the Qadirpur,
Miano, Sawan and Tal fields. The Company’s exploration portfolio includes operated and
non-operated joint ventures in 10 onshore blocks and 2 offshore blocks.
PPL holds joint ownership with the Government of Balochistan in Bolan Mining
Enterprises (BME), which is involved in the business of mining exploratory well-drilling
grade barite powder. BME is the operator of the Gunga barytes mine in Baluchistan.
Share of profit in BME at year end June 30, 2005 was PKR 29.263 million.
PPL’s head office is located in Karachi. The company’s total staff strength is about 2,536
employees including 640 management staff and 1,896 non-management staff.
The proven plus probable remaining recoverable reserves (2P) of PPL operated and non-
operated interests as of June 30, 2005 were 6.9 trillion cubic feet of gas and 39.6 million
standard barrels of oil/NGL. For the FY 2005, PPL’s average production was 948 mmcf/d
gas and 1,759 bbl/d oil. The company’s share in average production from its operated and
non-operated joint venture fields are as follows:
PPL Production
FY 2003 FY 2004 FY 2005
Oil/NGL (barrels per day) 1,353 1,697 1,759
Natural Gas (million cubic feet per day) 910 942 948
Financial Data
PPL has an authorized share capital of Rs. 10 billion. The issued, subscribed and paid-up
capital is Rs. 6,860 million (686 million shares issued at a par value of PKR 10). The key
financial highlights of PPL are given below.
Key Contacts
SUCCESS STORY
Type Marktstudie
Year: 6/2008
Publisher: Global Markets Direct
Language: english
Availability: available
Critical appraisal of the company’s
positioning using SWOT analysis.
Company information, including
business descriptions, company history,
product lines, key competitors and key
employee biographies.
Features of this market research: • Support business/sales activities by understanding
customers businesses better.
• Identify prospective partners and suppliers.
• Capitalize on your competitors weaknesses and
target the market opportunities available to them.
18 pages
Pakistan Petroleum Limited Energy Oil & Gas
SWOT Report is a comprehensive report of the
company including both quantitative and qualitative
About this market survey: research. The report examines the company’s
business struct.....
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Porter
“Strive for competitive advantage and the forces that affect it.”
Strategic Management
Dr. Cassell
By: Ashleigh Bender
Table of Contents:
Executive Summary:
Michael Porter created two concepts used by industries to either achieve greater
competitive advantage or can be used......
Achievements
Year Event
Commencement of pipeline quality Natural Gas supply to Karachi for industrial and
1955
domestic use within record time of three years of discovery at Sui.
Execution of Sui Gas Well Head Price Agreement (1982 GPA) stipulating cost-plus fixed
1982
return Gas Pricing Formula.
Commissioning of Sui Field Gas Compression Project (Phase 1) in Sui Main Limestone
1986
(SML) formation.
Installation of Liquefied Petroleum Gas (LPG) and Natural Gas Liquid (NGL) Plan and
1990
Commencement of LPG, NGL and gas production from Adhi.
Completion of Phase II Extension of Sui Field Gas Compression Project at SML and
1997
three Turbo Compressor Trains in Sui Upper Limestone Reservoir.
2000 Commencement of Extended Well Test (EWT) Production from Block-22, Shikarpur.
2001 Supply of gas from Miano Gas Field (Operated by a Joint Venture Partner).
- Dismantling of 1982 GPA and execution of new market based Sui and Kandhkot Gas
2002 Price Agreement linking the Sui and Kandhkot gas price with international oil prices.-
Acquisition of Sui gas Purification Plant jointly owned by SSGCL and SNGPL
- Country's first ever supply of 100,000 tonnes of indigenous iron ore from Dilband,
2004
District Mastung, Balochistan, to Pakistan Steel, Karachi.
Discovery of significant quantities of oil and gas/ condensate from the second
2005
exploratory well Makori-1 drilled within Tal Block.
- Completion of Extended Well Testing of Manzalai-1, first discovery well in Tal Block.
2006 - Commencement of production from Early Production Facility at Makori-1 well site in
Tal Block.
- Three discoveries; one oil and gas discovery at Mela-1 well (Nashpa Block) and two
gas discoveries Latif-1 (Latif Block) and Tajjal-1 (Gambat Block) were made.
2007
- Completion of the first exploratory well Mela-1 at Nashpa Block as oil and gas
producer and commencement of Extended Well Test production.
-For the first time in the Company’s history, two horizontal development wells were
drilled and successfully completed as producers at Kandhkot field.
-Exploration well Memikhel-1 at Tal Block was successfully competed as gas/
2008
condensate discovery.
-Appraisal well Mela-2 at Nashpa Block was successfully completed as producer and
tied in with EWT facilities
Company Overview
Pakistan Petroleum Limited is the oldest and largest Exploration and Production Company in the country
was incorporated on 5th June 1950 subsequent to the promulgation of the Pakistan Petroleum
Production Rules, 1949 with the main objective of conducting exploration, development and production
of Pakistan's oil and natural gas resources. PPL inherited all the assets and liabilities of the Burmah Oil
Company (Pakistan Concessions) Limited and commenced business on 1st July 1952.
PPL and its ex-parent Burmah Oil Company have been active in the subcontinent since the early part of
the 20th century. A total of 239 wells including 65 exploratory and 174 appraisal / development wells
have so far been drilled which resulted in the discovery of about 19.90 Tcf gas (both operated and non-
operated leases). A gas condensate/oil field at Adhi with original recoverable reserves of 1,253 MT
liquefied Petroleum Gas and 39.4 MMbbl of oil/condensate was also discovered by PPL.
The Company also operates a Baryte mine in Balochistan province. It produces oil well drilling grade
Baryte powder from the mine, which has proven reserves of 1.25 million tones. For the year 2004-05,
PPL's share of average production from its operated and non-operated fields was 953 MMcfd of gas,
1,372 bpd of oil/NGL and 26 tones per day of LPG. Production of gas from these fields meets about
25.1% of the country's indigenous production. The gas, LPG and NGL production from PPL operated and
non-operated fields for the year 2004-05 in terms of oil equivalent, was about 171,205 barrels of crude
oil per day.
The Company has a staff of about 2520 as at 31 May, 2006 employees with about 431 qualified
technical staff in the fields of engineering, computer and earth sciences. PPL has well established IT
department and all staff in the Head Office has access to computers and are interconnected through
Local Area Network (LAN). The Wide Area Network (WAN) has also been established connecting PPL's
three major producing fields and Regional Office in Islamabad with the Head Office at Karachi. The
Company has implemented SAP in 2004 integrating core business processes using Costing, Finance,
Human Resources, Materials Management, Plant maintenance and Project Systems modules.
The Government of Pakistan (GoP) in September 1997 purchased the entire equity interest of Burmah
Castrol PLC, formerly Burmah Oil Company, in the Company (comprising 21 million ordinary shares of
Rs.10 each) representing 63.91 percent of the Share Capital thereby increasing its holding in the
Company to 93.35 percent. Subsequent to June 2004, the GoP has disinvested a portion of its equity in
the Company equivalent to 15% of the paid up share capital of (i.e. 102.873 million shares of Rs.10
each) through an Initial Public Offering (IPO). The GoP has made a policy decision to privatize PPL and
IPO is a significant step towards this direction.
A consortium led by Merrill Lynch International and KASB securities (Pvt) Limited have been appointed
by the Privatization Commission (PC) as the Financial Advisor (FA) for the strategic sale of GoP's 51 %
interest in the company. Five (5) parties were prequalified as potential bidders for the transaction. The
Government of Pakistan continues to pursue the privatization process through sale of its majority
interest in the Company to a strategic investor and remains committed to proceed with the transaction
with a view to concluding the process at an early date.
Pakistan Petroleum Limited (PPL), the pioneer of the natural gas industry in the country, has been a
frontline player on the exploration and production sector for well over five decades. The company follows
an aggressive strategy to not only maximize production but also replenish existing reserves and venture
into untapped areas. Today, PPL contributes around 26 percent of the country's total natural gas
production besides producing crude oil/ Natural Gas Liquids (NGL) and Liquefied Petroleum Gas (LPG).
Starting out concurrently with the first major gas discovery at Sui in 1952, PPL now operates four
producing fields at Sui, Kandhkot, Adhi and Mazarani and holds working interest in seven partner-
operated producing fields. PPL’s exploration portfolio comprises 24 exploration blocks, including four that
are offshore. On June 30, 2008, the company’s hydrocarbon reserves stood at approximately 3.71
trillion cubic feet of natural gas, 23.3 million barrels of oil/NGL and 321,000 tonnes of LPG.
RECENT INITIATIVES
In pursuance of its corporate vision, PPL has stepped up efforts to increase hydrocarbon production to
keep pace with Pakistan’s growing energy needs. To this end, it has devised a dynamic exploration and
development strategy, focusing on enhancing its reserve-replenishment ratio, drilling-to-discovery ratio