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Marketing Plan KPOGCL IS SEEKING INVESTMENT FROM NATIONAL / INTERNATIONAL E&P COMPANIES INTERESTED
(KP GOVERNMENT FULLY OWNED & PROVINCIAL HOLDING COMPANY)
EXECUTIVE SUMMARY
Pakistan has a robust and growing economy which provides great opportunities to the
investors. Pakistan has proven reserves of some 60 TCF of gas and 1.1 Billion barrels of oil.
The reserves have more than doubled in 20 years. Shale gas reserves are around 550 TCF
with 200 TCF recoverable.
The province of Khyber Pakhtunkhwa in Pakistan is the new geographical frontier due to
rich discoveries of Oil and Gas, quality of oil and gas and high success ratio. KP is currently
producing over 50% of oil, almost 15% of gas and 25 % of LPG produced in Pakistan.
Currently 14 NOCs / IOCs are operative in KP due to improved law & order situation.
KPOGCL Miran Block covering an area of 1064.3 Sq. Km, falls in Prospectively Zone – I under the Federal Government Petroleum Policy 2012 and Petroleum Rules 2013 approved by CCI, for which the investor gets highest well-head price for Oil & Gas as compared to other zones. It is accessible via Indus Highway, where up-to-date facilities are available due to Oil & Gas exploration and production activities, discoveries in nearby areas. The Block is wholly located in the settled area; therefore the Security Risk factor is very low. The Miran Block is located in North Waziristan agency (85.63%) and Kurram agency (14.37%) of Fata Pakistan
Miran Block is located adjacent to Tal and Nashpa Blocks of MOL and OGDCL, which are highly prolific (productive) blocks; there is high probability that major discoveries are expected in the Miran Block. KPOGCL expects both oil & gas from this block. Total exploration cost is US$ 45 Million. An IRR at low oil prices is expected to be 28.8% over a project economics of 15 years is very attractive for international and local investors. Expected revenue is US$ 327 MM.
These high prospects have a success ratio of 1:2.80 and we promise “One Window Operation” to facilitate all stakeholders. Let’s join hands and synergize our strengths and resources for a profitable venture – a journey to success………..!!!!
KPOGCL Profile
Government of Khyber Pakhtunkhwa Pakistan, being
cognizant of Oil & Gas reserves, established Khyber
Pakhtunkhwa Oil & Gas Company Limited (KPOGCL).
KPOGCL is entrusted with the responsibility of
carrying out Oil & Gas Exploration and Production
(E&P) activities itself, but also to allure more E&P
Companies by ensuring them with the requisite
logistics and technological support, thus acting to
fast track Exploration & Production activities in
Khyber Pakhtunkhwa. KPOGCL, while being Provincial
Government of Khyber Pakhtunkhwa patronized, thus
can very conveniently act as an interface between the
E&P Companies and all the other Government related
agencies thereby actually performing the role of ‘One
Window Operations’. Under Pakistan Petroleum Policy
2012, KPOGCL is a “Provincial Holding Company”
(PHC) and it is in fact a facilitator to different National
& International Oil Companies working in Khyber
Pakhtunkhwa province.
KPOGCL is also investing in procurement of technical
equipment (i.e. Drilling Rigs and Seismic Recorder for
Data Acquisition) - all ultimately aimed at fulfilling the
dire needed energy requirements of not only Khyber
Pakhtunkhwa Province and the whole Country.
The Company is an active member of Pakistan
Petroleum Exploration & Production Companies
Association (PPEPCA), Society of Petroleum
Engineers (SPE) and Petroleum Institute of Pakistan
(PIP). It is run by an independent Board of Directors,
where the members are mostly Experts from the
Private Sector with Mr. Raziuddin (Razi) as CEO who
was turned around realities for both Attock Refinery
Limited and OGDCL during his leadership. Mr.
Raziuddin (Razi) as its CEO.
KPOGCL is determined to explore / exploit the
untapped Oil and Gas resources in the province
through its own efforts. It has also been facilitating by
providing a safe and secured working environment to
multinational E&P Companies.
KPOGCL Offers Business and Investment Opportunities in Oil & Gas Exploration and
Production Sectors in Khyber Pakhtunkhwa, PAKISTAN
Khyber Pakhtunkhwa (KP) province in Pakistan has become the newest and hottest geological frontier in Pakistan.
The prospective is high and so is the success rate. Today Khyber Pakhtunkhwa is producing more than 50% of the
total oil produced in Pakistan, over 15% of total Gas and 25% of high value LPG. Pakistan is about to break the
psychological barrier of 200,000 barrels per day, very soon, due to increased production in Khyber Pakhtunkhwa.
Pakistan’s Gas production is 4 Billion cubic feet per day and LPG’s production is 2,500 tons per day. With keen
interest and endeavors of oil and gas exploration companies, production of oil, gas and LPG is expected to increase
exponentially in near future. Pakistan being an acute energy deficit country absorbs all the oil, gas or LPG that is
indigenously produced. This situation is expected to continue for many decades. Therefore, off-take is quick in terms
of contracts and physical infrastructure. Gas transmission and distribution infrastructure is one of the largest and
state of the art. 18% of Pakistan’s population (32 Million out of 180 Million) has piped gas supply to their houses.
Commercial and industrial sectors are also connected with gas infrastructure. Refining capacity is over 17 Million
tons per annum and increasing. LPG bottling plants are never ending and exhaustive investment in oil, gas & LPG
infrastructure has made transportation from well head to consumer a source of satisfaction for investors in the
exploration sector.
Fortunately, Pakistan has an infinite pool of talent and technical professionals and technicians. Due to close
proximity to the Middle East, over 100,000 Pakistanis are working in Oil and Gas at any given point in time and this
has been the case since 1973. A number of international and national service companies like Weatherford,
Halliburton & Schlumberger provide confidence to investors. A number of international E&P companies have been
active since 1947 thus providing necessary transfer of knowledge and technologies.
Why Pakistan and why Khyber Pakhtunkhwa is attractive for Investors!
The latest Petroleum Policy-2012, a one window facility offers tremendous incentives and thus provides high returns
to investors as operators and/or non-operators JV partners. For Example, the gas well head price in Khyber
Pakhtunkhwa is set at US$ 6.60 per million BTU when Crude Oil is US$ 110/Barrel. This is perhaps highest in the
region. The well head price of Crude Oil is bench marked with international Platts. LPG is linked with ARAMCO
Contract Price (CP), thus, making well head not only transparent and unambiguous without any government
intervention but also US Dollar based. Repatriation of dividends is easy and quick. Pakistan is divided in 3 On-shore
zones. KP lies in Zone-1, for which the well head price is highest compared to Zone-II & III.
Assistance from Khyber Pakhtunkhwa Government
The Government of Khyber Pakhtunkhwa being cognizant of the opportunities in oil and gas exploration and
production sectors has developed systems to facilitate foreign investment in Khyber Pakhtunkhwa. It has formed an
Energy Apex Committee (EAC) chaired by none less than the Chief Minister, Government of Khyber Pakhtunkhwa. This
high powered committee irons out any and all impediments that a foreign investor may encounter. The provincial
government has gone one step further by establishing Khyber Pakhtunkhwa Oil & Gas Company Ltd (KPOGCL) which
has been involved in exploration as well as facilitating investors in geological & geophysical studies, feasibilities,
data mining, seismic data acquisition, interpretation, well planning, drilling, well completion, EPC and production.
KPOGCL is also the Provincial Holding Company (PHC) of Khyber Pakhtunkhwa.
Non-Operatorship:
KPOGCL offers 5% to 49% non-operatorship JV in 23 Concession Blocks of KP with IRR ranging from 30% to 45%.
These concessions are owned by both public and private sector companies, for which they have already signed
Petroleum Concession Agreement (PCA). We invite you to participate in acquiring Non-operatorship interest in Khyber
Pakhtunkhwa.
Operatorship:
For those E&P companies which desire to be Operator, KPOGCL can offer 05 blocks which are owned by us 100%; we
can provide data and analysis to interested parties for competitive bidding. Still vast area of prolific Khyber
Pakhtunkhwa lies unexplored. We invite you to bid with us in acquiring Operatorship interest in Khyber Pakhtunkhwa.
E&P Services:
Increasing requirements of oil & gas exploration and production provide great opportunities to service companies in
Khyber Pakhtunkhwa. We invite you to bring seismic data recorder, drilling rigs (2,500 HP & 3,000 HP), wire line
logging systems and other auxiliary services to Khyber Pakhtunkhwa. We will join hands with you.
Services
Geological, Geophysical
Geological, Geophysical
Oil & Gas Field /Block Evaluation
O&M Services
In-House Training
Sales and Support Services
Refining Operations
O&M
Human Resource
Siesmic
Drilling
Security
We Facilitate in Variety of Services
Introduction to Miran Block
Miran Exploration Block having an area of 1064.3
Sq.km, lies in North Waziristan agency (85.63%) and
Kurram agency (14.37%) of Fata Pakistan (Figure 1).
The Block lies in Prospectivity Zone-I (Figure 2). Based
on surrounding discoveries in Kohat-Bannu basin i.e.
Chanda, Mela, Nashpa, Makori, Maramzai and
Mamikhel, Miran Block is considered to be
prospective.
The Block is located about 270 Kilometers from
Peshawar towards south-southwest and 400 km
southwest from Islamabad. It can be easily
approachable by a network of highways and metaled
roads from District Peshawar, Kohat, Karak and
Bannu, where modern facilities are available due to
the current boom of Oil and Gas discoveries in the
nearby districts.
Miran E.L. Farm-Out Opportunity
KPOGCL has designed the Miran Block and is inviting
both national and international E&P Companies
interested in participating as Joint Venture with
KPOGCL in Miran Exploration Block. KPOGCL is
looking forward to farm out its 49% working interest
to other E&P Companies to assist KPOGCL regarding
Geological, Geophysical and Engineering studies and
an initial 1-2 exploratory wells drilling program. Work
Program is to begin in 2017 leading to the drilling
activities in 2018. Full program cost (Capex) is
estimated at US$ 45million.
Geological Probability = 0.6 (Source) × 0.8
(Reservoir) × 0.6 (Seal) × 0.5 (Trap) = 14.4%
Figure-01 Figure-02
E&P Activity History & Reserves
Potential
The province, Khyber Pakhtunkhwa has a strand of
discoveries over the past 15 years, beginning from the
Chanda Oil field Discovery in 1999 which was a major
breakthrough in oil & gas exploration in the province.
This was followed by a series of discoveries and still
has lot of potentials (fig….).
The southern districts of Khyber Pakhtunkhwa
Province possess significant Oil & Gas reserves
(Table-1 & 2) however is largely unexplored in terms
of Oil & Gas potential.
1. Miran Block is situated in the proven Kohat-
Bannu basins, which is contributing over 50%
of oil to the overall country production.
2. Khyber Pakhtunkhwa daily production of Oil is
46,000 BOPD, 400 MMCFD of Gas and 500
TPD of LPG. 15% of Gas & 25% of LPG.
3. The province has ca 9 TCF recoverable
reserves of Gas, 600 MMBBL of Oil..
4. Construction of new refinery is under planning
in Kohat area which will significantly reduce
time to market for crude oil It will ultimately
increase the revenue and profit of E&P
companies working in Khyber Pakhtunkhwa.
5. KPOGCL being a Provincial Holding Company
will facilitate the Exploration and Production
activities whether technical or non-technical
at every stage.
6. The Establishment of KPOGCL will guarantee
fool proof security and to facilitate companies
for all kind of logistics/support
7. Overall drilling success ratio is 1:2.8 as
compare to world 1:10
8. Khyber Pakhtunkhwa Province offers, low
cost, low risk opportunities for Oil and Gas
exploration, coupled with 35-40%.IRR.
9. In Khyber Pakhtunkhwa Province, Gas well-
head price is set at US$6.60 per MMBTU.
10. Operating costs in Khyber Pakhtunkhwa are
fairly low when compared with western
countries. Trucking costs are estimated at
$3.75 per barrel, while oil treatment and
processing is estimated to be $2.08 per
barrel respectively. Local labor is available at
a reasonable cost.
Table 1 Oil Reserves in Khyber Pakhtunkhwa Province, Pakistan as of June 30th 2016 (Million US Barrels)
Company Field Discovery
Year
Original
Recoverable
Cumulative
Production
Balance
Recoverable
MOL MAKORI 2005 11.00 4.00 7.00
MAKORI EAST 2011 43.00 16.00 27.00
MANZALAI 2002 7.00 6.00 1.00
MAMIKHEL 2008 3.00 3.00 0.00
MARAMZAI 2009 10.00 6.00 4.00
OGDCL CHANDA 1999 19.43 15.870 3.560
MELA 2006 17.89 13.320 4.570
NASHPA 2009 173.08 31.630 141.45
SHEKHAN 2010 0.01 0.01 0.00
Total 284.41 95.83 188.58
Table 2 Gas Reserves in Khyber Pakhtunkhwa, Province Pakistan as of June 30th 2016 (BCF)
Company Field Discovery
Year
Original
Recoverable
Cumulative
Production
Balance
Recoverable
BTU/S
CF
MOL MAKORI 2005 221.00 53.00 168.00 1120
MAKORI EAST 2011 278.00 71.00 207.00 1188
MANZALAI 2002 501.00 439.00 62.00 1049
MAMIKHEL 2008 80.00 70.00 10.00 1091
MARAMZAI 2009 363.00 154.00 209.00 1087
OGDCL CHANDA 1999 38.75 33.60 5.150 828
MELA 2006 67.39 47.580 19.810 1170
NASHPA 2009 582.85 120.930 461.920 1130
SHEKHAN 2010 1.68 1.68 - 1040
Total 2,133.67 990.79 1,142.88
Note:
• Source: DGPC, www.ppisonline.com
• The above reserve estimates are based on previous basin studies mostly covering smaller part of KPK
Province (Kohat &Potwar Basin), rest all pending to Explore.
o Large Oil & Gas Potentials in Bannu Basin, Peshawar Basin, and Northern Areas/blocks.