The 71st Annual General Meeting of Pakistan Petroleum Limited (PPL) was held online on October 26. Members approved financial statements for the fiscal year ended June 30, 2022, together with the auditor’s report. A final cash dividend of 5 percent on both ordinary and convertible preference shares was approved.
Opening the forum, Chairman, Board of Directors, PPL Mr. Shahab Rizvi welcomed the new MD & CEO PPL Mr. Imran Abbasy. He commended the management and staff for their persistent efforts in delivering on key objectives despite a challenging business environment. He also thanked all stakeholders for their support and trust in the company.
During his address, Mr. Abbasy shared the company’s exemplary performance that led to achieving several milestones during the year besides ensuring uninterrupted energy supplies for the nation. Following the huge feat of acquiring the country’s first-ever offshore Block 5 in Abu Dhabi by a PPL-led consortium, accelerated exploration and appraisal efforts are underway to drill the first well for 2023. Another significant achievement is signing of a non-binding framework agreement for reconstitution of Reko Diq project between Governments of Pakistan and Balochistan and Barrick Gold Corporation, PPL, OGDCL and GHPL. Reko Diq is one of the world’s largest undeveloped copper and gold mines.
“This year PPL secured the highest-ever profit-before-tax of Rs. 98.13 billion while managing a 2 percent increase in profit-after tax from the previous year despite imposition of super tax”, he noted.
On the production front, PPL’s average production remained 808 MMscfd gas equivalent during the year despite consistently lower offtake from Kandhkot Gas Field by GENCO-II and natural decline in mature fields. “To ramp up production, we have put four discoveries online, including Bashar X-1 in operated Hala Block and three in partner-operated Latif Block, adding approximately 57 MMscfd gas (gross) to the national supplies”, Mr. Abbasy shared. Moreover, production resumed from Dhok Sultan X-1 through the recently commissioned oil handling facility and Kabir X-1, Gambat South with a cumulative output of nearly 2,000 bbls/d oil and 5 MMscfd gas. Besides, eight development wells were drilled — two in operated and six in partner-operated assets.
As for the company’s exploration efforts, PPL drilled four exploratory wells, one in operated and 3 in partner-operated blocks and made two discoveries —Jugan-1 and Mohar-1—in partner-operated Latif Block. Additionally, the company won four new blocks through participation in Pakistan Bid Round 2022.
The company has made considerable headway in the mining sector with the Barite, Lead and Zinc project, expected to kick-off soon, following the grant of a large-scale mining lease with recoverable reserves of 69 million tonnes along with an estimated project life of 32 years.
PPL continues to reach target deserving communities in operated and urban areas through need-based, development projects with the current annual input of Rs. 2 billion. During the recent devastating floods, PPL came forward to support flood-hit communities throughout the country with a donation of Rs 70 million, including relief goods. For its part, Pakistan Centre for Philanthropy has once again adjudged PPL as the largest corporate giver for volume of donations for the 16th consecutive year.
Looking ahead, PPL is poised to maintain the momentum for exploration in opportune international and national basins and high-risk-high-reward areas to find much-needed hydrocarbon reserves to plug the energy supply gap and improve production efficiencies from existing assets. With this, PPL remains committed to strengthening and diversifying its revenue base through fast-track development of BLZ project, closing out the Reko Diq deal besides exploring diversification ventures in midstream and renewables.