oil and gas sectors by romail ejaz

Oil and Gas sectors

ACKNOWLEDGEMENT

  This report is a case Oil and Gas Industry which has

been prepared as a part of the course requirement for Pakistani oil and Gas Industry The material compiled and presented in this report is a result of comprehensive work.

This report has proved to be a great experience. For this, I would like to thank our course instructor “Prof, Khurram Aziz Fani” for providing us with the opportunity, as well as his guidance in the light of his vast experience.

THANKS.

Over View

OIL

There is 7 oil refineries companies working in Pakistan.

1. Pakistan Refinery Limited2. Pak-Arab Refinery3. Attock Refinery4. National Refinery5. Indus Oil Refinery Ltd 6. Khalifa Coastal Refinery7. Trans Asia Refinery

OIL Production Target :-

According to survey of the year the target of oil production is 69000bl but the target has exceeded to 74000bl Pd.

Major reason of exceeding of oil target is Pakistan produce electricity with the oil. So Pakistan import oil.

And Pakistan import oil 16 million tones.

Gas Pakistan is one of the largest consumers

of gas in the region. The two gas distribution companies plan to invest up to US $ 800 million to increase the capacity of existing transmission

and distribution network. Sui southern Gas Company (SSGC) Sui Northern Gas pipeline (SNGP)

Gas production Target :-

The target of Production of gas is 4200mmcfd and it also exceed to 4791.

This entry is the total natural gas imported in Cubic meters.

Pressure of the gas is counted in PSI (pound square per inch)

And reason of exceeding of Gas target is UOG

Uncounted for Gas (UOG)

The gas which is waste due to leaking and theft is called a UFG. The ratio of the UFG is set in whole world is 2% but in Pakistan the ratio of the UFG is 4.5% and now it is exceeded to 7%.and that's why our country is suffering from the crisis.

Last government made a corruption 82 million.

Production of electricity by gas

  We can produce a 4000 MW electricity by

750 million matric cubic feet per day (mmcfd) Gas but we are produce a electricity with oil which is a very costly method.

Federal Budget 2013-14

The price of the petroleum is set 12,000 billion Rs under the budget.

And The price of Gas is set 39,744 billion Rs

under the budget.

Government policiesIran Gas Pipeline

Now the current Govt. has officially announced in it's annual plan 2013-14 that it will implement targeting the first flow of gas in December 2014. Under the current budget PML-N set the cost $1.5 billion for the Iran gas pipeline even the last Govt. was announced the cost $1.25 billion the current Govt. reduce the cost $.20 billion for Iran pipeline gas project.Under the project Pakistan will import 750 mmcfd of gas to generate 4000 MW of power to over come.

GOVT TO OVERCOME OIL, GAS SHORTAGES

Current Government said that measures would be taken on war footings to overcome the shortage of oil and gas sectors in the country, The Minister took serious notice of gas theft and unbearable line losses, he said that ministry should work independently and decision would be taken on merit no pressure on influence would be entertained. At present the presences of abundance of problems in the ministry because of wrong decision making made in the past.While expressing priority of natural gas allocation to the consumers and the they decide that the commercial consumer are the first priority and the power sector is on second priority and fertilizer and industrial sector and the third and compressed natural gas and cement sector are on the last priority in the gas allocation.

TAPI PROJECT

TAPI is a project which is produce a Gas in Pakistan and the name of these country is below which is agree for the production of the gas.

Turkmenistan Afghanistan Pakistan India

TAPI Project Pipeline strength:

1680 kilometers.

TAPI Gas Production:

3.2 billion cubic feet per day (BCFPD) and recently Pakistan signs major deal to import a gas from Iran.

  Production Cost:

7.6 billion.

PAKISTAN SEEKS US INVESTMENT IN OIL AND GAS SECTORS

US ambassador Ms Anne W Patterson called on the advisor to prime minister on petroleum and natural recourses Dr Asim Hussain and said that there is a huge option to make a power energy because you have 185 billion tones coal and coal can be converted in oil and gas by using advance technology and we wants to build a strong relationship between two countries.

Liquid Natural Gas (LNG) Gas Qatar Project

Pakistan will initiate talks with Qatar from the import of 500 mcfgpd now this month but finance minister ishaq dar reject this project because of there is now money to invest and foreign inverter are not interested in this project.

Kashmir project

There were chances of oil reserves in some areas of Azad Kashmir especially Mangla and Mirpur because India was exploring oil and gas from a occupied part of the territory, and geologists from Pakistan should be allowed to work. And Italian company with expertise in the field is interested to work on the project.

And in Azad Kashmir has independent Govt. and the federal Govt. could only make a written request to them.

Sanghar project 

oil and gas discovery in sanghar, PPL has successfully completed production testing at it's exploration well Adam x-1, located in district sanghar sindh. PPL has a 65% working in the block.

The production of the Oil is in one side 144 b pd and gas 16.8 mmcfd.

and second side 125 bpd 14.3 mmcfd.

Indian pipeline project

According to media reports India is in talks to export natural gas to Pakistan through a pipeline from Punjab to help the country overcome crippling energy shortage. 110-km pipeline from Jalandhar to Wagah border via Amritsar to supply natural gas to Pakistan

Oil and gas sector stock in the spotlight

Govt. has take the attention to the investors by the different oil and gas development project and the investors invest in the Govt. for the development of Oil and gas sectors, by the investment of the investor Govt. gained 3% an average in two days. when the Govt. cannot developed oil and gas sectors investors wants clearance of circular debts then the Govt held a meeting with the investors for the settlement of receivables, According to a notice sent to a Karachi Stock Exchange oil and gas development company (OGDC) has subscribed to Pakistan investment Bonds (PIB) worth Rs 50.7 billion, which the government has issued to partially settle the overdue receivables of the oil and gas companies. OGDC will earn an annual coupon rate of 11.5% on the investment.

Threats  1. In the current situation of Pakistan due to shortage of

gas and other issues many industries are thinking to leave Pakistan just like Niko resources company has decided to pack up and quit Pakistan apparently. Because of low wellhead gas price that make it difficult to sustain operations. The government of Pakistan has awarded the four blocks to NIKO in March 2008 for off sure drilling.

2. A meeting of the sub-committee the chair to discuss the issue of oil theft worth billions of rupees from the combined pipelines of PSO and PARCO.

Committee on Petroleum and Natural Resources issued arrest warrants of Pakistan State Oil (PSO) and PARCO Managing Directors (MDs) for their alleged involvement in oil theft -

Thank you!