Pakistan Petroleum goes global with first exportation well in Middle East

State-owned PPL said in a notification sent to the Pakistan Stock Exchange on Tuesday that it had drilled an exploration well-named Madain-1 on Block 8 in Iraq on April 14, 2019. (REUTERS)
Updated 17 April 2019
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Pakistan Petroleum goes global with first exportation well in Middle East

  • PPL is the first Pakistani oil and gas firm to drill abroad, spuds gas exploration well in Iraq on April 14, 2019
  • Pakistan Petroleum and subsidiaries hold 43 exploration blocks of which PPL operates 26, including one in Iraq

KARACHI: Pakistan Petroleum Limited (PPL) has become the first Pakistani oil and gas firm to go global, the minister for petroleum said, as it started drilling an exploration well in Iraq where gas deposits of 200-300 million cubic feet per day (mmcfd) are expected to be found.
State-owned PPL said in a notification sent to the Pakistan Stock Exchange on Tuesday that it had drilled an exploration well-named Madain-1 on Block 8 in Iraq on April 14, 2019. The block is located in the Mesopotamian basin and “surrounded by areas that have several large oil and gas fields,” the notification added.
“PPL’s foray into the international competitive energy markets and its success is heartening and a resounding success for this division, the company and indeed the entire nation,” Minister for Petroleum Ghulam Sarwar Khan said in a statement on Wednesday. 
In its statement to the stock exchange, PPL said the well was being drilled on an integrated project management basis by a Chinese drilling contractor, ZEPEC, and marked a significant milestone in the company’s history as its first international exploration.
“The Madain-1 prospect matured with the help of a 3D seismic survey carried out by the company over a 300-square-kilometer area of the block that spanned around 6,000 square kilometers,” the notification said. “There are multiple reservoir targets in Madain-1 that will be drilled to a depth of approximately 5,000 meters.”
The PPL and its subsidiaries hold a portfolio of 43 exploration blocks of which PPL operates 26, including one block in Iraq.
The project is wholly owned by the government of Iraq while PPL will draw remuneration from revenues as per the agreement signed with the government.
“There is no estimation when it [project] would come online but it seems that it would take 5 to 6 months to materialize,” said Samiullah Tariq, Head of Research at Arif Habib Limited.
Lucky Cement, another privately owned Pakistani company, already has a footprint in Iraq with a cement grinding unit in Basra and a greenfield clinker manufacturing facility in Samawah, expected to achieve commercial production in the last quarter of financial year 2019-20.


Pakistan PM to meet President Trump today

Updated 3 min 20 sec ago
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Pakistan PM to meet President Trump today

  • Premier Khan in on an official visit to US accompanied by the army chief
  • Wide-ranging talks to mend bilateral ties, regional security situation on the agenda

ISLAMABAD: Pakistan Prime Minister Imran Khan is all set to visit the White House on Monday for his first face-to-face talks with President Donald Trump.
Army chief General Qamar Javed Bajwa will also be part of PM Khan’s delegation during his meeting with Trump at the White House, military spokesman Major General Asif Ghafoor confirmed. 
Bajwa will also visit the Pentagon and interact with Acting Secretary Defense Mr. Richard Spencer, US Chairman of the Joint Chief of Staff General Joseph Dunford and Chief of Staff of the US Army General Mark A Milley, Ghafoor tweeted.
Khan embarked on his maiden trip to the US on Sunday in a bit to mend bilateral ties.
Last year, the US had cut security aid to Pakistan accusing the country of “lies and deceit” while Khan called the US assistance “minuscule” in comparison to the cost borne by Pakistan in fighting the US-led war on terror.
During his official three-day visit, the Pakistani premier held separate talks with IMF acting chief David Lipton and World Bank President David Malpass.
According to the PM’s office, Khan thanked the IMF Board of Directors for approving the recent Extended Fund Facility (EFF) for Pakistan during his meeting with Lipton at the Embassy of Pakistan in Washington on Sunday.
“Prime Minister pointed out that reforms implemented under the IMF program will be instrumental in stabilizing the economy and reviving growth,” the official statement read. Khan “expressed his government’s commitment to take all necessary measures needed to resolve the macroeconomic and structural challenges for sustainable and long-term growth.”
Earlier this month, Pakistan signed a $6 billion loan program from IMF which has come with stringent economic reform conditions.
In a meeting with President of the World Bank, Khan appreciated the tremendous support extended by the Bank in different sectors of Pakistan’s economy over the years.
“While highlighting government’s reform priorities including improving the ease-of-doing-business, the Prime Minister expressed satisfaction with assistance and stewardship being provided by the World Bank,” a statement by the PM Office read.
Khan expressed hope that the Bank would roll forward the pipeline projects and assured the Bank’s President of his government’s support in this regard.
The premier’s visit comes at a time when talks between the US and Afghan Taliban are believed to have entered a final phase where Islamabad played its role in arranging Washington’s direct peace dialogue with Taliban.
Khan also addressed Pakistani Americans at Capital One Arena in Washington on Sunday where he spoke about domestic politics and economic challenges confronting the country.