OGDCL discovers hydrocarbon reserves in Sindh.

on 09/10/2024

In a significant milestone for Pakistan’s energy sector, the Oil and Gas Development Company Limited (OGDCL), the nation’s largest exploration and production (E&P) firm, has made an exciting discovery of hydrocarbon reserves at the Akhiro-1 exploratory well. This well is strategically situated in the Khairpur district of Sindh, a region known for its geological potential.
The announcement was formally communicated in a notice to the Pakistan Stock Exchange (PSX) on a Wednesday, sparking interest and optimism among investors and stakeholders alike. The notice detailed that the Sawan South joint venture, which includes OGDCL holding a 20% working interest, alongside United Energy Pakistan Limited (UEPL) as the operator with a commanding 75% stake, Government Holding Private Limited (GHPL) with 2.5%, and Sindh Energy Holding Limited (SEHL) also with 2.5%, has successfully unearthed gas from the Lower Gour B Reservoir Sand at the Akhiro-1 well.
OGDCL’s update revealed that drilling operations at the well commenced on June 15, 2024, and the drilling team has achieved a remarkable depth of 12,442 feet. The well underwent testing and exhibited promising results, producing approximately 10 million standard cubic feet per day (mmscfd) of gas at a choke size of 24/64 inches and a Wellhead Flowing Pressure (WHFP) of 4,000 pounds per square inch (Psig). This successful output not only underscores the potential of the well but also marks a significant step forward in the exploration of energy resources in the region.
Furthermore, OGDCL emphasized that this discovery mitigates risks associated with further exploration in the Sawan South Block. The company noted that the newfound reserves will play a crucial role in bolstering the energy security of Pakistan, relying on indigenous resources to meet the nation’s energy demands and augmenting the country’s hydrocarbon reserve base.
In the context of broader developments in the sector, just days prior to this announcement, OGDCL entered into a Memorandum of Understanding (MOU) with CNPC Chuanging Drilling Engineering Company LTD, a prominent player in China’s drilling and upstream oil field services. This partnership aims to explore the shale and tight gas potential in Pakistan, further highlighting the international collaboration aimed at enhancing the country’s energy capabilities.
In its recent financial report, OGDCL disclosed a profit-after-tax (PAT) of Rs208.98 billion for the fiscal year ending June 30, 2024. This figure represents a decline of nearly 7% compared to the Rs224.62 billion profit recorded in the same period the previous year. In light of its financial performance, the company announced a final cash dividend of Rs4 per share, equivalent to 40%, which reflects its ongoing commitment to providing value to its shareholders despite the fluctuations in earnings.
This discovery at the Akhiro-1 well not only exemplifies OGDCL’s ongoing efforts to explore and develop hydrocarbon resources but also signifies a hopeful trajectory for Pakistan’s energy landscape, promising greater stability and sustainability in the years to come.

Data Centers, Cloud Computing, AI: Mari Petroleum to Invest Rs10 Bn in New Subsidiary.

on 09/10/2024

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest exploration and production companies, has approved a Rs10 billion (approximately $36 million) investment to establish a wholly-owned subsidiary focused on technology-driven ventures. The announcement was made in a notice to the Pakistan Stock Exchange (PSX) this month.
During an emergent board meeting on September 23, 2024, the board approved this significant investment aimed at developing capabilities in areas such as data centers, cloud computing, artificial intelligence (AI), and other new technologies, particularly in the petroleum and mining sectors.
This move follows the board’s prior decision to create a subsidiary concentrating on cloud computing and AI, signaling MARI’s growing interest in the rapidly evolving tech sector. The initiative aligns with the burgeoning IT industry in Pakistan, which has seen IT and IT-enabled services (ITeS) export remittances soar to a record $3.223 billion in the fiscal year 2023-24, marking a 24% increase from $2.596 billion in the previous year.
In FY2024, MARI reported a profit-after-tax (PAT) of Rs77.28 billion, up nearly 38% year-on-year from Rs56.13 billion the previous year. The board also announced a final cash dividend of Rs134 per share, equating to a 1,340% return, along with an 800% bonus share issuance (eight shares for every one share held) sourced from the Capital Redemption Reserve Fund and Revenue Reserves.
In a previous notice accompanying its financial results, MARI revealed its initial foray into the IT sector with the formation of a subsidiary dedicated to cloud computing and AI. The recent developments come amid the government’s approval of a five-year extension for the Mari D&P lease, which now extends the company’s rights until November 2029, alongside an additional payment based on wellhead value.
The company stated that the amendments to the Petroleum Policy 2012 now allow the lease extension as long as field production remains commercially viable. The issuance of bonus shares reflects MARI’s robust balance sheet and commitment to growth and diversification.n

Innovative approaches to sustainable construction technologies.

on 09/10/2024

ACEP, in collaboration with PEC, organized a seminar on innovative approaches to sustainable construction technologies. The speakers, Mr. Amir ul Islam and Mr. Enes Keskin, shared valuable insights on mechanical rebar couplers and their applications in various residential, commercial, and infrastructure projects, emphasizing steel savings and innovative solutions. The importance of adapting to evolving technologies is crucial for our progress in Pakistan, a theme that was reiterated by ACEP executives.

PAK-INDUSTRIA: A Call to Promote Domestic Industries

on 09/10/2024

The three-day “PAK-INDUSTRIA” exhibition served as an exceptional platform for both domestic and international suppliers to showcase their high-quality products. Jam Ikramullah commended the participation of local industrialists, extending his well-wishes for their continued success. He emphasized that his office doors would always remain open for them, ensuring full cooperation. Ikramullah encouraged local entrepreneurs to step up, stating that the time has come to actively promote domestic industries. He also praised the organizers for hosting such a successful event.
Notable attendees included Asif Sam Sam, Chairman of ABAD; Muneem Zafar, Ameer of Jamaat-e-Islami Karachi; and Kamran Arabi, President of the SITE Association, all of whom took time to visit the exhibition.
A significant panel discussion titled “Exploring New Opportunities in Engineering through Emerging Technologies in Artificial Intelligence” was also part of the conference. Moderated by Engr. Zohaib Ilyas and Ms. Hoorain Ghori, the panel featured esteemed experts: Dr. Bilal Khan from NUST, Dr. Farrukh Arif from NED University, Aamir Qureshi, former CEO of CBRE, and Mustafa Abdullah from Moro Power Company.
The closing ceremony featured Engr. Khalid Pervez as the guest of honor, wrapping up a fruitful event that fostered collaboration and innovation within the industry.

Kohinoor Power Calls Off Merger with Saritow Spinning Mills

on 09/10/2024

Kohinoor Power Company Limited (KOHP) announced this month that it is no longer pursuing a merger with Saritow Spinning Mills Limited (SSML), citing challenging economic and operational conditions. The company communicated this decision in a notice to the Pakistan Stock Exchange (PSX), signaling a significant shift in its strategic plans.
According to the notice, the Boards of Directors (BoD) of Kohinoor Power and Saritow Spinning Mills convened on September 30, 2024, where they mutually agreed to retract the previously granted approval for the proposed amalgamation of KOHP into SSML. “This decision was not made lightly,” the notice stated. “Both boards are committed to acting in the best interests of their stakeholders and have conducted a thorough review of the current economic landscape.”
In October 2018, the KOHP board had given in-principal approval for the merger, which was expected to create synergies and enhance operational efficiencies between the two companies. However, recent developments have forced a reevaluation of this strategy.
The notice further explained, “This decision follows a thorough assessment of the current economic conditions and the financial status of SSML, which has ceased production as of February 2024. Given these circumstances, it has been concluded that the anticipated benefits of the merger are no longer achievable.”
This development underscores the volatility of the textile sector in Pakistan, which has been grappling with numerous challenges, including fluctuating demand, rising costs, and a global shift in manufacturing trends. Stakeholders will be keenly watching how Kohinoor Power navigates this complex landscape moving forward, as the company seeks to reassess its strategic objectives in light of this decision.
With the merger off the table, KOHP will likely focus on strengthening its core operations and exploring alternative partnerships that align more closely with its current business goals. The decision reflects a cautious yet pragmatic approach as the company aims to safeguard its interests in a rapidly changing economic environment. – ER Report