The Ministry of Energy’s Directorate General of Petroleum Concessions (DGPC) has provisionally awarded four new exploration blocks in Balochistan and Sindh to Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Pakistan Oilfields Limited (POL). The development was shared by OGDCL, one of the country’s largest E&P companies, in its notice to the Pakistan Stock Exchange (PSX). OGDCL participated in the competitive bidding round for exploration blocks held by the Government in November 2023. The formal award of petroleum rights in the blocks is conditional to the signing of petroleum exploration licenses and execution of petroleum concession agreements with the government, execution of joint operating agreements among the respective JV, and completion of related legal/procedural formalities. OGDCL said the participation in the bidding round is in furtherance of its strategy and business plan to invest in its core business, accelerate exploratory activities and augment hydrocarbon reserves balance. Facing growing energy demand, Pakistan heavily relies on fossil fuels to power its economy and a major chunk of its import bill comes from the purchase of petroleum products and other fuels. Last year in July, the OGDCL was provisionally awarded two new exploration blocks in Sindh and Punjab.
|
|
OGDCL, PPL & POL get provisional awards for new exploration blocks in Sindh, Balochistan
|
|
|
Competition Commission of Pakistan okays merger in shipping services
|
|
The Competition Commission of Pakistan (CCP) has approved a merger in the deep-sea container liner shipping services market. Through the approved merger, PIL Holdings Pte Ltd acquires minor shareholding in PIL Pte Ltd, both entities are registered in Singapore. The PIL Pte has an indirect subsidiary in Pakistan called Pacific Delta Shipping (PDSPL). PDSPL serves as the designated local agent in Pakistan, helping manage shipments and cargo for PIL Pte Group customers in the country. The acquirer PIL Holdings is primarily engaged in investment holdings, while PIL Pte is currently active on the Far East Asia to Pakistan route (China-Vietnam-Singapore-Malaysia-Sri Lanka-India-Pakistan) and vice versa. It also owns and operates an international carrier with a presence in China, Southeast Asia, Africa, the Middle East, Latin America, Oceania, and the Pacific Islands.
|
|
|
Engro Elengy Terminal Limited (EETL), a joint venture between Engro Corporation and Royal Vopak, has asked the Special Investment Facilitation Council (SIFC) to help resolve the issues with Sui Southern Gas Company (SSGC) over expanding its liquefied natural gas (LNG) import terminal. The EETL has sought the intervention of SIFC to address the concerns raised by SSGC regarding Third Party Access (TPA) at EETL. EETL has been operating Pakistan’s first LNG import terminal (through its wholly owned subsidiary Engro Elengy Terminal (Private) Limited) since 2015. It has handled 33 million tonnes of LNG, 68 percent of all LNG imports of Pakistan since inception and is considered as one of the highest utilized LNG receiving terminals in the world. Pakistan faces severe gas depletion, which is expected to worsen in the coming years. Owing to the shortage of FSRUs globally after the Russia-Ukraine conflict, expansion of existing terminals is the quickest way to bring additional gas into the country. The expansion can only be carried out by bringing in a larger FSRU in the country. The government, through its Economic Coordination Committee (ECC)’s decisions, has already approved TPA to allow private parties to carry the burden of LNG value chain based on increased gas demand-supply dynamics without any offtake commitments from the government.
|
|
Engro Elengy seeks SIFC intervention to expand LNG terminal
|
|
|
Power sector slashes fuel oil use by 75pc in five months
|
|
The power sector slashed its consumption of petroleum products by nearly 75 percent in the first five months of the current fiscal year, as the country faced an economic slowdown and switched to cheaper alternatives, data from the oil sector showed. As all the sectors saw a decrease in the consumption of petroleum products, the power sector topped the list, as fuel oil consumption in this sector dropped sharply. The power sector, which accounted for the largest share of petroleum consumption in the previous year, used only 300,000 tonnes of fuel oil and diesel from July to November, compared to 1.15 million tonnes in the same period of 2023, the data showed. The industry consumed 435,000 tonnes of oil during the period under review, compared to 480,000 tonnes in the same period of last year. The cement sector consumed 414,000 tonnes of petroleum products in the first five months, against the consumption of 459,000 tonnes in the corresponding period of last year. The transport sector also consumed less in the months under review, compared to the same period of last year, as the total consumption in the sector stood at 5.5 million tonnes, compared to 5.9 million tonnes a year ago. Industry people attributed the decline to the economic slowdown, as well as the low consumption of fuel oil by power plants, which led the consumption figure to drop massively. They said that smuggled petroleum products also dented the sales of the formal sector, and added that although the diesel consumption improved slightly after the crackdown against smuggling, the economic conditions were not so improved to push up the consumption.
|
|
|
Mari Petroleum Company Limited (MARI), one of the largest producers of natural gas in the country, has discovered gas reserves at Shewa-2 well, located in North Waziristan district Khyber Pakhtunkhwa. The development was shared by the company in its notice. “We are pleased to inform that Mari Petroleum Company Limited (MARI) has made a gas discovery at Shewa-2 appraisal-cum-exploratory well (in Waziristan block), located in North Waziristan district, Khyber Pakhtunkhwa Province,” read a notice. MARI is the operator of Waziristan Block with 55% working interest along with OGDCL and OPI as joint venture partners having 35% and 10% working interest, respectively. The company is an integrated oil and gas exploration and production company and around 70% exploration success rate, which is much higher than industry averages of around 33% national and 14% international. MARI’s key customers include fertilizer manufacturers, power generation companies, gas distribution companies; and refineries.
|
|
Mari Petroleum discovers gas reserves in North Waziristan
|
|
|
PayPal enters Pakistan via strategic partnership
|
|
PayPal is set to establish its presence in Pakistan through a strategic partnership with an existing international payment gateway, catering to freelancers and IT professionals. The joint venture announcement is expected next month. Caretaker Minister for IT and Telecom, Dr Umar Saif, stated that PayPal will operate indirectly in Pakistan through this collaboration, marking a significant development for the country’s growing freelance community (approximately 1.5 million), the fourth-largest globally. Saif highlighted the positive impact on IT exports and freelancer remittances, attributing the uptick to recent measures supporting a liberal financial regime. He added that the inflows from IT export have already jumped by 13% for November and will continue to grow. The IT Ministry has undertaken various initiatives, including providing smartphones through instalment plans, standardised quality tests for IT graduates, and approval of the National Space Policy. Saif expressed confidence in launching 5G services in Pakistan by July 2024, with a spectrum auction offering 300 MHz.
|
|
|
Pakistan’s exports of furnace oil have surged to a historic high level in the five months of FY24, amounting to 358,000 metric tons. Pakistan has traditionally remained dependent on imports for furnace oil in the past. The power generation segment is the largest consumer of furnace oil. Currently, there are five organizations operating in the oil refining sector in Pakistan, which includes; Pak-Arab Refinery Limited (PARCO), Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Cnergyico Pk Limited (CPL).
|
|
Pakistan’s furnace oil exports hit record high in 5MFY24
|
|
|
ADB to fund climate-resilient housing projects
|
|
The Asian Development Bank will assist seven countries of Central and West Asia, including Pakistan, to enhance the role of the private sector in the delivery of inclusive, accessible, adequate, affordable and climate-resilient housing ecosystems that also champion the needs of disadvantaged population groups. Approving the regional technical assistance of $500,000, the ADB says its team will explore private sector-based solutions and interventions besides identifying potential pilot projects for implementation. The ADB says a high-level housing diagnostic study has been developed besides formulating a strategy for climate-responsive and climate-resilient housing, with development of a plan to engage private sector. It says leveraging the private sector strengths can help bridge the gap in housing provision, particularly in inclusive, sustainable and climate-responsive construction practices. It is essential to create an enabling environment that encourages private sector participation, including policy reforms, market incentives, and public-private partnerships.
|
|
|
Pakistan has emerged as the first South Asian nation that has exported heat-treated beef to the world’s largest meat importer, China. In a notification to the Pakistan Stock Exchange (PSX), The Organic Meat Company Limited (TOMCL) reported “TOMCL (a Pakistan-based firm) now stands as the first company from South Asia to have successfully exported cooked/ heat-treated frozen beef and meat products to the People’s Republic of China on December 31, 2023).” China is the world’s largest meat importer, purchasing approximately 3.10 million tons of beef and mutton during 2022 while TOMCL has secured a unique position as one of the only two companies that have obtained a licence for exporting cooked meat products to China from South Asia. With the approvals and commencement of active exports to the mainland China, the company is set to explore new horizons, anticipating significant growth in export volumes and turnover.
|
|
Pakistan exports heat-treated beef to China
|
|
|
© 2024 Alpine Marine Services Private Limited all rights reserved
|
|
