Pakistan Petroleum Limited.pdf

PAKISTAN PETROLEUM LIMITED CORPORATE PRESENTATION OCTOBER 2013

Pakistan Petroleum Limited

Corporate History 2  

Century old legacy of Burmah Oil plc. UK 1950: Incorporated with BOC as majority shareholder



1952: Sui Discovery



1997: GoP purchased entire equity of BOC





2004: 15% of share capital offloaded through IPO 2009: GoP distributed 12% of its equity in PPL to employees



Public limited listed company



Three-fold expansion in portfolio



Business operations across Pakistan and abroad

Pattern of Shareholding – 30 June 2013

Shareholders

Percentage

Government of Pakistan

71.06

PPL Employees Empowerment Trust

7.35

Non-Resident Financial Institutions

9.60

Public Sector Companies

3.33

Modarabas and Mutual Funds

3.22

Others

5.44

Total

100

Corporate Structure 3

Total Staff Strength: 2,700

HEAD OFFICE KARACHI, PAKISTAN

Joint Venture With Government Of Balochistan (50%)

Wholly-owned Subsidiary Of PPL Registered In United Kingdom

BRANCH OFFICE ISLAMABAD, PAKISTAN EXPLORATORY

EXPLORATORY

Yemen (2) *

Pakistan (3) PRODUCING

Pakistan (1)

PRODUCING

EXPLORATORY

Pakistan (19)

Pakistan (45) (incl. 3 offshore)

*Block-29 assignment of working interest in progress.

Wholly-owned Subsidiary of PPL Registered in Netherlands

BRANCH OFFICE BAGHDAD, IRAQ EXPLORATORY

Iraq (1)

Mining Lease Barytes (1) Mining Lease Iron Ore (1) Mining License Iron Ore (2) Exploration License Baryte, Lead , Zinc (1)

Production & Reserves 4

Wells Drilled Exploratory Development / Appraisal

Total Discoveries Gas Fields Oil/ Gas / Condensate Fields Oil Fields

Total

91 274 365

Success Ratio 1:2.6 23 11 1 35

Daily Average Production (July 2012 – June 2013) - PPL’s share Gas MMcf Oil/Gas/ Condensate BBL LPG Tonnes Total BOE Remaining 2P Reserves (as at 30 June 2013) - PPL’s share Gas (Tcf) Oil / Gas/ Condensate (MMBBL) LPG (M Tonnes) Total MMBOE

908 10,099 47 174,128 4.695 78 527 930

Current Asset Portfolio 5

ASSET SUMMARY Exploration Pakistan

45

Producing

offshore) International(incl. 3Pakistan

3

19

Total

67

International Portfolio 6 







International Assets: 

Block-29 in Yemen (43.75%) – 2009



Block-8 in Iraq (100%) – 2012



Block-3 in Yemen (20%) – 2013

International Subsidiaries: 

PPL Europe E&P Limited



PPL Asia E&P B.V.

Efforts for International Joint Venture Exploration & buying Undeveloped / Developed reserves Different countries of North / East Africa, the Middle East, and the Central Asian states are being evaluated by PPL

Planned Exploration & Drilling Activities 7 7000

4000 International Areas POp Areas - Local Op Areas - Local

6000

International POp Areas - Local PPL Operated Local

2500

2D Seismic

4000

3D Seismic

3000 Sq Kms

Line Kms

5000

3500

3000

2000 1500

2000

1000

1000

500

0

0 2013-14

40 35

No. of Wells

30

2014-15

2015-16

2016-17

2017-18

2013-14

2014-15

2015-16

2016-17

2017-18

Exploratory, Development and Workover Wells International POp Areas - Local Op Areas - Local

25 20 15 10 5 0

Exploratory Development Workover

Exploratory Development Workover

Exploratory Development Workover

Exploratory Development Workover

Exploratory Development Workover

2013-14

2014-15

2015-16

2016-17

2017-18

Projected Growth in 5 Years 8 

100%

Replenishment of around 3.23 tcf of gas and gas

90%

equivalent reserves

Organic Growth

80% 70%



553

Achieve an average growth of around 16% over the

919

60% 50%

Plan period

40%

Int'l Growth

30% 

New discoveries and acquired reserves to contribute

Gas Production

23000

*

1050

17000

1000

138 108 36

Bopd

MMscfd

Oil Production

54

New Oil 10,083

15000 6,181

13000 11000

900

7000

850

1,654

2014-15

2015-16

2016-17

2017-18

2014-15

2015-16

10,214

5000 2013-14

* - Additional production over fixed based year

11

9000

922

2013-14

*

19000

New Gas

3

Conventional Growth

0%

21000

950

Unconventional Growth

10%

26% of Company’s total production 1100

1,554

20%

2016-17

2017-18

Recent Development 9



Four recent discoveries   



Partner Operated - Sukhpur (Eni) Operated – 2 discoveries in Gambat South (PPL) Operated - Hala (PPL)

First tight gas discovery 

Partner Operated - Production commenced from Kirthar Block (POGC)



Prospectivity Study of Offshore Area with a UK based company



Shale Gas Study  



Jointly being conducted by Eni and PPL Core study conducted in Hala Block to evaluate shale gas potential

Low BTU Reservoir (HRL) development at Sui Gas Field

Key Performance Indicators 10

KEY PERFOMANCE INDICATORS

UOM

Executive to Staff Ratio Reserves (2P) per Employee

2012-13

0.36 BOE

344,387

Sales (net) per Employee

USD* in ‘000

382

Profit after Taxation per Employee

USD* in ‘000

157

BOE produced per Employee

June 2013 rate of 1USD = 99.2 PKR

BOE

23,548

Financial Performance 11

Shareholder's Payout

Net Turnover 1,200

Cash Dividend %age 970

160%

20%

800 621

10%

120%

600

60%

20%

350

130%

120%

200

115%

105%

90%

40%

2008-09 2009-10

2010-11

2011-12 2012-13

317 279

300

235

250 200 150

50 2008-09

2009-10

2010-11

2011-12

-

2012-13

CSR Expenditure (US$ Million)

2008-09 2009-10 2010-11 2011-12 2012-13

12

PKR 347.6 billion USD 3,504 million

USD Million

10

Market Capitalization*

423

100

20% 0%

413

400

20%

80%

400

-

450

100%

604

500

25%

140% 789

Bonus Share %age

USD Million

USD Million

1,000

1,032

Profit after Tax

8 6 4

* As at 30 June 2013

2

June 2013 rate of 1USD = 99.2 PKR

0

11.1

10.8

2011-12

2012-13

8.5 5.3

2008-09

5.3

2009-10

2010-11

Potential investment opportunities Exploration and development of shale gas / oil in PPL-held block 12

Unearthing shale resource prospects



According to USA EIA June 2013 publication, technically recoverable Shale Gas and crude oil reserves are 105 Tcf and 9 Bbls, respectively



Regional study by PPL / Eni identified areas with good Shale Gas potential. Lab analyses of shale cores from exploratory wells underway



PPL has several acreages, where initial findings indicate good Shale Gas potential



These blocks – Kotri, Kotri North, Gambat South, Hala etc. are situated in Pakistan’s Lower and Middle Indus basins



PPL would welcome joint venture with experienced E&P companies for exploitation of Shale Gas / oil potential in Pakistan along with transfer of technology

Shale Gas Play Fairway

Potential Shale Gas sweet spot

Potential investment opportunities Prospectivity/development of conventional resource play – JV partnership 13 Joint Venture for Exploration in Offshore Pakistan

conventional play –  Exploring Offshore /exploiting Pakistan remains severelypetroleum under explored total 17 wells drilled and most did not reach the target reservoirs

 Offshore Pakistan divided into two – Indus Basin and Makran Basin

 Indus Basin constitutes the second largest delta / fan system in the world and estimated to hold 800 MMBbl oil and 5 Tcf gas

 Working Petroleum System established in Indus Offshore with gas flow at exploration well PakCan-1 (1986)

 PPL and Orion Energy, UK will carry out a regional study to re-evaluate the whole of Pakistan Offshore

 Large portions of Indus Offshore and the whole of Makran Offshore open for exploration

 PPL would welcome JV with experienced companies to properly explore the Offshore Pakistan Joint Venture for Exploration in Onshore Pakistan

petroleumand play  Exploring PPL holds /exploiting a number ofconventional onshore concessions would consider swap of working interest from existing exploration portfolio in return for similar mature opportunities internationally.

Satellite imagery of Pakistan Offshore

Potential investment opportunities Technology patterning and drill venturing 14

Opportunities in Upstream technology center

Opportunities in drilling venture

 

Presently, PPL outsources drilling activities



Company will also train drilling staff for deployment in ready to drill prospects and shale plays of Lower Indus Basin, Pakistan



Tentative plans call for importing roughly 70% of rig equipment from E.U./U.S. companies, while approx 30% components are to be fabricated domestically in collaboration with Karachi Ship Yard & Engineering Works Ltd.





To enable and promote domestic R&D concepts, encompassing scientific study of both conventional and unconventional hydrocarbons, PPL has commissioned the creation of Upstream Technology Center under the umbrella of PPL Asia E&P B.V. – subsidiary of PPL registered in the Netherlands



A central area where future R&D efforts will focus includes extensive studies of shale gas and oil deposits in indigenous basins and horizon



Robust evaluation of Pakistan’s offshore basins through satellite imageries, seismic data and other G&G studies is also planned



IoCs / Majors are invited to be part of this strategic venture, by sharing tech. / operational knowhow and contributing equity to realise this project

However, with multiple exploration prospects in horizon, Company intends to acquire own rig for its newly formed drilling arm – PPL E&P services

PPL keen to invite potential investors for equity participation in drilling venture

Thank You