AHL Research has published a report on the Annual General Meeting of Pakistan Petroleum Limited held today. Below are the key takeaways from the AGM:
- PPL management communicated that potential reserves of Abu Dhabi Offshore Block 5 are 110 million barrels of oil. PPL pro rata share is 11mn barrels and production from this block is expected to be commenced from FY28/29.
- Company also plans to acquire nearby exploration blocks from Offshore Block 5 for which negotiations are underway.
- PPL management is confident of achieving fruitful results from Eastern Offshore Indus C Block which is a strategic collaboration with Turkish Petroleum Overseas Company.
- Company has planned 12 wells for FY26 in the frontier as well as offshore regions. This includes four development wells.
- Further elaborating on the plans for frontier regions, work is underway with join venture partners. Wells will be drilled in FY26/27 which includes Suleiman belt in Balochistan. By 1QFY27 plan is to drill a well in offshore region. Lal X1 is in testing phase and potential can be gauged after drilling 2-3 wells.
- PPL’s gas production stood at 204,853 mmcf in FY25. Gas production would have been higher by 10% in FY25 if not for curtailment issues created by excess RLNG in the system. The company had to curtail output by about 73 mmcfd in FY25. Revenue would have been higher by PKR 20bn in FY25.
- In 1QFY26 recovery ratio from SSGC has improved to 100% compared to 82% in FY25 and for SNGP recovery ratio has declined to 84% compared to 95% in FY25. PPL cash and short term investments position stood at PKR 80bn FY25 end compared to PKR 112bn at the end of FY24. Lower cash position is due to Sui lease extension bonus payment.
- Similar to resolution of power sector circular debt, management is confident of resolution of gas sector circular debt as well.
- Regarding third party gas sales, management communicated that they are in negotiation with 10 companies. Selling to third parties remains a challenge due to transmission grade and infrastructure issues which mainly includes pipelines.
- Company’s mining diversification is a response to evolving energy landscape and is poised for significant growth driven by Barite-Lead-Zinc project.
- PPL improved the dividend payout ratio to 22% in FY25 with DPS of PKR 7.5 compared to payout ratio of 18% in FY24.
