Prepared By:

Muhammad Waseem
29/10/2015

Background

Oil and Gas Sector Structure

Introduction

Exploration and Production

Refining

Oil Marketing and Distribution

Gas Distribution

Future Challenges
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EIA

Energy Information Administration

MMBo

Million barrel of oil

TCF

Trillion cubic feet

MMSCFD

Million standard cubic feet per day

BBl

Barrel

LPG

Liquefied petroleum gas

NGL

Natural gas liquid

CNG

Compressed natural gas

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Pakistans economy is growing at high rate and

demand high energy consumption.

Pakistan meets 100% of gas and 17% of oil demand

from local sources.

Oil and gas are major components of Pakistans energy

mix meeting 80% needs.

Pie-chart showing oil-gas consumption by sector

Exploration and Production

It is governed by ministry of petroleum and natural resources(MPNR) government of

Pakistan.

DG petroleum concessions functions as regulatory body for all upstream exploration

and production activities.

DG gas is responsible for formulating policies regarding natural gas, LPG, LNG and
CNG

Transmission and Distribution

Downstream oil and gas sector is regulated by Oil and Gas Regularity Authority
(OGRA).

It is mandated to increase private investment and ownership in downstream sector.

OGRA is also responsible for regulating activities relating to LPG and CNG sectors.
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Pakistan has sedimentary basin covering over 827000sq.km

First commercial oil discovery was made at Khaur Punjab in

1915 by Attock Oil Company. (4.31 MMBo)

In 1952 Pakistan petroleum made significant gas discovery

(13 Tcf) at Sui Baluchistan.

Offshore region of Makran and Indus basins.

Sun oil company (USA) drilled three near shore wells in

Indus basin (1961)
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An assessment of yet to find reserves for all basins

suggests 3585 MMBo oil and 66.26 Tcf gas.

Total 850 exploratory wells have been drilled, it includes

834 onshore and 16 offshore.(Sept 2013)

Total 271 oil and gas fields (62 oil and 209 gasgas/condensate) have been made.

Drilling density of 2.44 wells per 1000 sq.km and success

ratio of 1:3.2
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Recoverable reserves of oil and gas are estimated to be

353.5 MMBL and 23.64 Tcf.

Oil and gas reserve situation 2013-14 (MPNR)

Oil and Gas Development Company Limited

National Oil and gas company of Pakistan

45 operated oil fields and 18 processing plants
Products include Sales gas, condensate, LPG, Sulphur

Pakistan Petroleum Limited

Pioneer of natural gas industry in the country.

20% of natural gas is supplied by PPL (1 bcf/day)
Other products are Crude oil, natural gas liquid, LPG
Recoverable reserves were 2.021 Tcf of natural gas, 17.041 MMbbl of oil/ NGL and
309,918 tons of LPG. (June 2015)

MOL Pakistan

Operational in pakistan since 1999.

Products are Oil/Condensate 20,000 Bbl/day, Gas 300 MMscfd, LPG 350 Tons per
day
23 out of 30 wells drilled remain successful.

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Oil and Gas Production 2014-15 (MPNR)

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Schlumberger

Saxon Energy Services

Weatherford

Halliburton

Baker Hughes

Sprint Oil and Gas Services

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Pakistan has high potential of shale gas production

and exploration.

Pakistan has technically recoverable shale reserves

of 105 Tcf gas and 9 Bbbl shale oil. (US EIA)

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Eight oil refineries are operational in the country.

Refining capacity of 18.79 million tons.

Refining records (MNPR) 2015

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Pakistan State Oil

Nations largest marketing and distribution company of various POL products since
1976.
Total outlets 3754 (Retail sector 365, bulk sector 189)
Largest storage capacity (68% of total storage)
PSO imports 90% of total oil product imports.
Products include Mogas, HSD, FO, Jet fuel, Kerosene, CNG, LPG, Lubricants

Shell Pakistan

Shell in present in the region since 1897

Total retail outlets 780
Shell serves three sectors. Retail, lubricants (42% market share) , Aviation (33%
market share)

Attock Petroleum Limited

Started business in 1998

Retail outlets 516
Products include HSD, Mogas, Jet fuel, Kerosene, Lubricants.

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Sui Northern Gas Pipelines Limited

Distribution activities in Punjab, Khyber Pakhtoonkhaw, and Azad Kashmir.

Transmission system consists of 7,756 km, distribution system consist of 94,263 km

Serves 4.9 million costumers comprising commercial. Domestic, general industry,

fertilizer, cement and power sectors.

Sui Southern Gas Company

Distribution activities in Sindh and Balochistan

Transmission system consists of 3,220 km, distribution system consist of 37,000 km

Serves 2.5 million customers comprising industrial, domestic and commercial

customers
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Main source of energy in Pakistan natural gas (48%) and

oil (32%).

Pakistan is experiencing worst gas shortages

Natural gas demand 5398 MMCFD against supply of

3748 MMCFD

Shortfall has caused gas companies to implement gas load

shedding

Gas shortage has resulted in many economic problems

Electricity Load shedding

43% of electrical power is generated from thermal power plants running on natural gas.

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To meet the gas shortage government is

implementing different strategies.

Increasing domestic gas exploration and production through policy incentives and
additional financial incentives for gas extraction through non conventional
sources.

Importing natural gas from neighboring countries.

TurkmenistanAfghanistan PakistanIndia (TAPI) and Iran-Pakistan pipeline

project.

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Demand supply Situation MMCFD OGRA-2014

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Ministry of Petroleum and Natural resources

(http://www.mpnr.gov.pk
Oil and Gas Regulatory Authority
(http://www.ogra.org.pk )
Asian Development Bank
(http://www.adb.org/sites/default/files/linkeddocuments/48307-001-ssa.pdf )

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Thank-You

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