Exploration Strategy

Pakistan Petroleum Limited's (PPL) Exploration Strategy is aimed at replenishing and if possible, enhancing its existing petroleum reserves. The remaining hydrocarbon potential of highly prospective areas in Pakistan is limited as most of the low to medium risk / cost areas are already held under concessions and generally, medium to high risk / cost areas are available as open acreages. Therefore, PPL is gradually venturing into relatively unexplored medium to high risk / cost frontier areas.

PPL is endeavoring to maintain a manageable portfolio of both operated and joint venture exploration blocks in order to compete in the Dynamic Exploration Environment of the country and try to achieve the company’s strategy of reserve replacement.

Pursuing this strategy, company’s exploration portfolio expanded significantly during the last few years and at present it holds working interest in 23 licenses including 7 operated and 16 partner operated areas. Efforts continue to further expand the exploration portfolio. In this regard, PPL has filed eight applications for Exploration Licences in country.

International Exploration 

As part of the strategy to enhance its reserves, PPL is also evaluating Joint Venture Opportunities to embark upon International Exploration. In this respect a focused strategy has been developed, regions with varying priorities have been identified and a few Middle Eastern, North and East African countries have been visited to discuss available and viable farm-in opportunities. Success in International Ventures is expected to bring tangible benefits not only to the company but also to the country.

PPL got its first International Joint Venture with OMV (Operator) in Block-29, Yemen, having 50-50 partnership. PPL is looking for partners to farm-out part of its share in the block.

PPL has recently pre-qualified in Iraq and is looking for making a Consortium to bid for Iraq development phase. In this context PPL has contacted several International Oil companies to seek consortium formation to participate in the 2nd Iraqi Bid Round. Iraq contains 115 billion barrels of proven oil reserves, the third largest in the world (behind Saudi Arabia and Canada), concentrated overwhelmingly (65 percent or more) in southern Iraq. Estimates of Iraq's oil reserves and resources vary widely; however, only about 10 percent of the country has been explored. Some analysts believe that deep oil-bearing formations located mainly in the vast Western Desert regions could yield large additional oil resources (possibly another 100 billion barrels or more).

Additionally, the company is seriously considering the E&P potentials in Iran especially in its Bandar Abass Block which is believed to be very attractive.

PPL is a pre-qualified company for Exploration Operations in Algeria and has aggressively participated in the 7th bidding round held in 2008. Algeria contains an estimated 11.4 billion barrels of proven oil reserves and 160 TCF of gas as of January 2006. Algeria's recoverable natural gas potential, may be as high as 282 Tcf. Algeria's largest gas field is the super-giant Hassi R'Mel, holding proven reserves of about 85 Tcf.

PPL also participated in the 3rd Libyan Gas Bid Round in December 2007 along with OGDCL. Not being successful in winning a block, the company continues pursuing field development opportunities in Libya.

We welcome companies intending to offer Farm-in countries falling in Middle East, North Africa and Pakistan. The countries of instant interest are Iraq, Iran, Algeria, Libya, Senegal and Pakistan. Companies interested to Farm-in could contact GME PPL Exploration.

PPL Operated Blocks

During 2008 efforts continued to accelerate exploration activities in PPL areas. For this purpose seismic, hydrocarbon micro-seepage surveys, spectral anomalies remote sensing study and in-house G&G data evaluation were carried out in different blocks.   

1. Hala (Block 2568-13) – Sindh (PPL share 65%)

PPL / MGCL Joint Venture
1st exploration well Adam X-1 drilled in 2007 flowed gas / condensate from Lower Goru Sands. Setting up of EPF for conducting the EWT of Adam discovery is in progress and 1st gas is expected by November, 2009.
G&G evaluation to appraise Adam discovery and firm up another lead in the block is in progress.

2. Bahawalpur East (Block 2971-5) –Punjab (PPL Share 49%)

PPL / ZhenHua Joint Venture
Reprocessing and interpretation of vintage 2D seismic data was completed, and mobilization of BGP seismic crew is underway to acquire new 2D seismic over the identified leads. Earlier a “Hydrocarbon Micro-seepage Survey” was also conducted over entire block during June 2008 to identify prospective areas within the block. The results were encouraging and used to design the seismic survey. 

3. Dadhar (Block 2867-3) – Balochistan (PPL share 45.66%)

PPL / KUFPEC / MGCL / GHPL Joint Venture
Efforts continued for drilling of exploration well in Dadhar Block. An elaborate security arrangement was finalized with the Government of Balochistan and security agencies after which the civil works contractor mobilized to Dadhar area in mid November 2008.
Civil works for access road and well site for the exploratory well is in progress satisfactorily and it is expected to be completed by mid February, 2009. Well is expected to be spudded in March 2009.
PPL is at the forefront of Government’s endeavor to open up Balochistan for E&P activities and drilling of Dadhar Well will go a long way towards achieving this objective and securing the energy supplies of the country.

4. Barkhan (Block 2969-8) – Balochistan (PPL Share 35%)

PPL /  MND / OMV Joint Venture
2D seismic survey is planned in mid 2009.

5. Khuzdar (Block 2766-1) - Balochistan (PPL Share 65%)

PPL /  Eni Joint Venture
Regional remote sensing study to detect “Spectral Anomalies” induced by hydrocarbon microseeps has been completed based on which a number of potential anomalies identified in Khuzdar, Nushki and Kalat blocks.

A Microseep Survey and about 160 line km 2D seismic data are planned in the block.

6.  Nushki (Block 2966-1) – Balochistan (PPL Share 65%)

PPL /  Eni Joint Venture
The planned 60 line km 2D seismic data in Nushki Block will be acquired after Khuzdar block survey.

7. Kalat (Block 2866-2) - Balochistan (PPL Share 35%)

PPL /  Eni / OMV Joint Venture
Efforts are being made to conduct the planned gravity / magnetic survey in the block by Contractor BGP. A structural modeling study for Kalat, Khuzdar and Nushki block is also planned through an experienced international consultant.

8.  Adhi Mining Lease - Punjab

PPL / OGDCL / POL Joint Venture
2D seismic data acquisition of 220 km for delineation of sub-thrust play and southern limit of the Adhi structure was completed in mid December 2008 and its processing is in progress.

Exploration Outlook

During 2007-08, efforts continue to further expand the exploration portfolio. Seven new applications namely Kharan, Kharan West, Palantak, Zhob, Sirani, Naushahro Firoz and Sukhpur for the grant of Exploration licenses have been submitted to the government. Furthermore, evaluation of blocks applied by other E&P companies is ongoing. Based on evaluation results, PPL may participate in the upcoming bidding round for the selected blocks.