Latest news with #PakistanOilfieldsLimited
Business Recorder
a day ago
- Business
- Business Recorder
Significant hydrocarbon discovered in Karak
KARACHI: A significant new hydrocarbon discovery has been announced in the country, following the successful testing of the Makori Deep-3 Development Well located within the TAL Joint Venture (JV) in the Karak District, Khyber Pakhtunkhwa Province. The well is operated by MOL Pakistan. Drilling operations for the Makori Deep-3 Well began on December 12, 2024, and reached a final depth of 3,887 meters. Upon completion, the well demonstrated substantial flow rates from the Lockhart Formation, yielding 22.08 million standard cubic feet of gas per day (MMSCFD) and 2,112 barrels per day of condensate. The well also produced 15 barrels per day of formation water, tested on a fixed choke at a flowing wellhead pressure of 4,744 psi. Both major Pakistani oil and gas entities, Oil and Gas Development Company Limited (OGDCL) and Pakistan Oilfields Limited (POL), have confirmed their respective working interests in the discovery. OGDCL holds a 27.763 percent working interest in the development phase of this Block. On the other hand, Pakistan Oilfields Limited (POL) holds a 25 percent pre-commerciality working interest in the TAL Block. This successful testing of Makori Deep-3 is anticipated to significantly bolster Pakistan's energy reserves and contribute to the nation's energy security. Pakistan Oilfields Limited expects the well to be connected to the production line within two months. The information was submitted in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1 of the Pakistan Stock Exchange Limited Regulations, for dissemination among their members. Both companies officially communicated the discovery to the Pakistan Stock Exchange Limited, with copies also sent to the Securities & Exchange Commission of Pakistan. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
POL in 9MFY25
Pakistan Oilfields Limited (PSX: POL) reported a substantial decline in profitability for the nine months ended March 31, 2025, reflecting broader challenges facing the upstream oil and gas sector. The company posted a profit after tax decline of 44 percent in 9MFY25. The primary drag on earnings was the recognition of over Rs7 billion in exploration expenses related to the unsuccessful well, coupled with lower hydrocarbon sales volumes and a drop in average realized oil prices. Net sales declined 11 percent year-on-year in 9MFY25 as both crude oil and gas production fell by 6.4 percent and 12.2 percent, respectively. Increased pipeline pressures from the gas distribution company and subdued demand contributed to these lower production figures. The financial performance in the 3QFY25 also mirrored this downward trend. POL recorded a quarterly profit decline of 47 percent year-on-year. Revenues during the quarter fell by11 percent year-on-year, driven by an 8 percent fall in oil production and an 18 percent drop in gas output. These operational setbacks were compounded by a 28 percent decline in other income, which fell by 28 percent year-on-year in 3QFY25 due to reduced interest earnings amid declining policy rates and lower investment yields. Exploration costs surged to over a billion rupees during the quarter, nearly 4.5 times higher than the same period last year, reflecting intensified geological and seismic activity. Despite the earnings pressure, POL maintained strong operational momentum in its exploration and development activities. Drilling continued across key assets, while the company also continued to process seismic data across a wide range of fields and secured new acreage in the Sindh region. At the sectoral level, POL's performance reflects the broader dynamics in Pakistan's E&P industry, where oil and gas production contracted by 11 and 7 percent respectively in 9MFY25. Nonetheless, a recovery appears to be taking shape, fuelled by recent gas price rationalizations, improved receivables, and renewed government focus. Although the company's financial performance was underwhelming, its continued investment in new reserves, coupled with a healthy liquidity buffer of over Rs100 billion, positions it well to benefit from a potential upturn in the E&P cycle.
