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Shahzad International Group of Companies
Engaged in diverse business pursuits
DEDICATED TO DYNAMIC GROWTH, SUSTAINED DEVELOPMENT AND MEANINGFUL ECONOMIC BENEFITS FOR THE GROUP AND ITS PARTNERS
FLASHPEL
PEL
Petroleum Exploration (Pvt) Ltd.
Shahzad International
Kandra Power Company (Pvt) Ltd.
Global Mining Company (Pvt) Ltd.
Shahzad Travels (Pvt) Ltd
Our Business
Shahzad CGG (Pvt) Ltd.
Flash Security (Pvt) Ltd.
FLASH
PEL
With the Group’s sound financial position, its
companies are in business independently, as well as in collaboration with foreign
partners, since 1980
The Group has been instrumental in bringing a number of multinational companies to Pakistan resulting in
substantial profitable investment that led to significant discoveries of Oil & Gas
Activities cover a wide spectrum, including oil & gas exploration &
production both onshore and offshore;power generation and transmission; mineral exploration & development
including gold, copper, coal and other minerals; oil & gas field services, supply
of oil & gas equipment and materials, process equipment; information
technology; security; telecommunication; production of
documents and trading
GROUP ACTIVITIES
The Shahzad Group, comprises seven (7) companies
The Group is pursuing a policy of forging strategic alliances with reputable
foreign companies
As a local partner, Shahzad Group is providing support to foreign companies
in Pakistan
PELPAKISTAN'S ENERGY OUTLOOK
Source: Pakistan Energy Outlook
ImportsImport bill
$ 50 Billion
0
20
40
60
80
100
120
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Local Supply Total Oil & Gas
Ever increasing Supply Demand Gap
Millio
nT
OE
s
Investment Opportunity
2011 – 2012
64.522 mtoe = 1,290,440 boed
PELPAKISTAN PETROLEUM SECTOR……
�Energy demand is met by local production and imports
�Gas contribution in the energy mix is around 50 %
�Annual energy growth is around 5.25%
�Daily oil production is 70,000 Barrels
�Daily gas production is 4.2 BCF
�Daily oil import is around one third of a million barrel
�Pakistan has a model energy mix from environmental point of view
�Leads South Asia in petroleum reforms
�Has Forward looking & dynamic policies to promote private investment
�Offers highly attractive gas prices in terms of 2012 Policy, Tight Gas Policy,Low BTU Gas Price Policy and Marginal / Stranded Gas fields - Gas Pricing Criteria and Guidelines, 2013
�Is competitive and profitable
�Has a ready market for oil & gas
�Has proven Geology and excellent prospectivity
Policy, Rules & Prospectivity
Present Situation
PELPELPAKISTAN PETROLEUM SECTOR
Dynamic Policies offeringcompetitive financial and
regulatory packages
Excellent success ratio of 1 to 3.3
Sedimentary basins are under explored (two wells /
1000 Km²)
Excellent prospects for discovering additional Oil &
Gas reserves
Country wide oil & gas infrastructure and ready
market for new discoveries
PELPAKISTAN PETROLEUM SECTOR
Exploratory Wells
Area under Exploration
Leases
Development Wells
Exploratory Drilling Density
Sedimentary Area
Exploration Licenses
OperatorsDiscoveries: 256
�820 (First well in 1866)
�274,641 km² (33% of sedimentary area)
�133
�1137
�2 wells / 1000 km²�very low compared to
the world’s average
�827,268 km²
�132
�18 Foreign and 11 Local Companies�Oil 60
�Gas/Condensate 196
PELTypes of Exploration & Production Rights
Reconnaissance Permit
Exploration Licence (Onshore)
Development & Production Lease (Onshore)
�Non-exclusive One year initial term with One year renewal for unlimited open area
�5 years initial term (Two phases) Phase-1 : 3 years Phase-2 : 2 years
�Two renewals of one year each
�One year appraisal period (All Zones) with 5 years additional retention allowed for gas market
�MaximumArea allowed : 2500 sq. km
� Relinquishment
�30% of the original area after Phase-I (after 3 years)
�20% of the remaining area after Phase-II (after 5 years)
�10% of the remaining area on or before 2nd renewal (after 6 years)
�25 years with one 5 year renewal
PELTypes of Exploration & Production Rights
Exploration Licence (Offshore)
Total period of Licence : 7 years
Development & Production Lease (Offshore)
�5 years initial term (Two Phases)
�Two renewals of one year each allowed
�Maximum period of one year allowed for appraisal operations over discovery area plus additional 5
years retention period for gas market
�MaximumArea allowed : 2500 sq. km
�Relinquishment
�30% of the original area after Phase-I (after 3 years)
�30% of the remaining area after Phase-II (after 5 years)
�20% of the remaining area at the end of 1st renewal (after 6 years)
�25 years with one 5 year renewal
PELTypes of Exploration & Production Rights
Grant of Lease after Expiry of Lease Term
�
agrees to pay an amount equivalent to 15% of the wellhead value to the Government
�DGPC will otherwise invite bids one year before the end of the lease period from pre-qualified
companies seeking to have a petroleum right over the lease area, in relation to any producing
field for an additional ten years.
�The bids will be evaluated on the basis of Signature Bonus
�Each bidder shall provide a bid bond of 10% of the offered Signature Bonus at the time of
bidding
�DGPC shall be under no obligation to grant any extension.
DGPC can renew the lease term for another five years term in case the existing lease holder
PELFinancial Terms
Crude Oil Pricing
Condensate Pricing
�Crude oil delivered at the nearest refinery shall
be equal to C&F price of a comparable crude
oil or a basket of Arabian/Persian Gulf crude
oils (Reference Crude or RC) plus or minus(±)
a quality differential between the RC and the
local crude oil.
�No other adjustment or discount will apply
other than the Windfall Levy.
�FOB price of internationally quoted
comparable condensate delivered at the
nearest refinery gate plus or minus (±) a
quality yield differential, based on the value in
the Arab Gulf spot products market of the
condensate.
�No other adjustment or discount will apply
other than Windfall Levy.
Windfall Levy:
WLO = 0.4 x (M-R) x (P-B)
Where:
WLO - Windfall Levy on crude oil and
condensate;
M - Net production (petroleum produced &
saved);
R - Royalty;
P - Market Price of crude oil and
condensate;
B - Base Price, which will be as under:
a. The base price for crude oil and
condensate will be USD 40 (USD 0.5/bbl per year
escalation).
In the event Market Price of Crude Oil/Condensate
exceeds US$ 110/barrel, the 100% benefit of
Windfall Levy will pass on to the Government. The
ceiling would be reviewed as and when pricing
dynamics significantly changes in the international
market.
PELFinancial Terms
Gas Pricing
Windfall Levy on Natural Gas:
�
basket of crude oil
�The floor set at US$ 10/bbl and ceiling at US$ 110/bbl
�Plus applicable discounts for Zones:
�Zone-0: 73.88% (Offshore Shallow)�Zone-0: 84.44% (Offshore Deep)�Zone-0: 95.00% (Offshore Ultra Deep)�Zone-I : 69.66% (Onshore)�Zone-II: 66.5% (Onshore)�Zone-III: 63.33% (Onshore)
rdWill only be applied if the sale is made to a 3 Party over and
above the policy price and there will be no Windfall Levy if the Natural Gas is sold to theGovernment of Pakistan
The multi-stage pricing mechanism with the addition of slabs up to US$ 110/bbl price of
US$/BBL Applicable % of C&F Price
0 to 30 100%
Above 30 to 50 Plus 50% of incremental increase
Above 50 to 70 Plus 30% of incremental increase
Above 70 to 110 Plus 20% of incremental increase
PELFinancial Terms
Gas Pricing - (Illustration)
$/BBL
A. Weighted average imported Crude Oil C & F Price (Assumed RCP) 140.00
Floor Price C & F 10.00
Ceiling Price 110.00
B. Apply sliding scale discounts to C&F crude oil price after floor & upto ceiling.
US$/BBL Applicable % of C&F Price US$/BBL
0 to 30 100% 30
Above 30 to 50 Plus 50% of incremental increase 10
Above 50 to 70 Plus 30% of incremental increase 6
Above 70 to 110 Plus 20% of incremental increase 8
Applicable C&F Price (A+B+C+D) 54
Marker Price Onshore Zone III 63.33% of applicable C&F price $34.2
Conversion Factor * assumed (MM Btu/bbl) 5.7
Zone III producer price for pipe line quality specification gas in US$/MMBtu 6
PELFinancial Terms
Extended Well Testing
Corporate Tax Rate
Royalty
Following Royalty schedule will be applied for offshore:
�
prince.
�ax on income will be payable at the rate of 40% of profit or gains in accordance with the Fifth Schedule of theIncome Tax Ordinance, 2001.
�Royalty will be payable at the rate of 12.5% of the value of petroleum at the field gate.
�First 48 Calendar Months after Commencement of Commercial Production (No Royalty)
�Months 49 to 60 inclusive (5% of field gate price)
�Calendar Months 61 to 72 inclusive (10% of field gate price)
�Calendar Months 73 and greater (12.5% of field gate price)
�It will be treated as an expense for the purpose of determination of income tax liability.
The discount during EWT phase – 5% for on spec gas & 10% for off spec gas on the applicable zonal gas
T
PELFinancial Terms
�Cost Limit (Under production sharing arrangement for offshore)
�Cost limit is 85% including the royalty of 12.5%. The Contractor can recover 100% of the costs up to a maximum of 85% of the gross revenues.
�Profit Oil and Profit Gas Splits1 Profit oil & gas share for wells in shallow grid area of less than 200m water depth and depth to
reservoir shallower than 4,000m
Cumulative Available Oil/ Government Holdings Share Contractor Share of ProfitAvailable Gas from Contract of Profit Oil/Profit Gas in Oil/Profit Gas in Contract
Area Contract Area Area
MMBOE Crude Oil/LPG/ Natural Gas Crude Oil/LPG/ Natural
Condensate Gas Condensate Gas
0-100 20% 10% 80% 90%
>100-200 25% 15% 75% 85%
>200-400 40% 35% 60% 65%
>400-800 60% 50% 40% 50%
>800-1200 70% 70% 30% 30%
>1200 80% 80% 20% 20%
PEL
Crude Oil/ LPG/
CondensateNatural Gas
Crude Oil/ LPG/
CondensateNatural Gas
5% 5% 95% 95%
10% 10% 90% 90%
25% 25% 75% 75%
35% 35% 65% 65%
45% 45% 55% 55%
60% 60% 40% 40%
Government Holdings Share of
Profit Oil/Profit Gas in Contract
Area
Contractor Share of Profit
Oil/Profit Gas in Contract Area
MMBOE
0 - 300
>300 - 600
Cumulative Available
Oil/Available Gas from
Contract Area
>3600
>600 - 1200
>1200 - 2400
>2400 - 3600
Financial Terms
2. Profit oil & gas share for wells in deep grid area of more than or equal to 200m and less than
1,000m water depth or deeper than 4,000m to reservoir in shallow grid area
3. Profit oil & gas share for wells in ultra deep grid area of more than or equal to 1,000m water depth
Crude Oil/ LPG/
CondensateNatural Gas
Crude Oil/ LPG/
CondensateNatural Gas
5% 5% 95% 95%
10% 10% 90% 90%
25% 25% 75% 75%
35% 35% 65% 65%
50% 50% 50% 50%
70% 70% 30% 30%>2400
>400 - 800
>800 - 1200
>1200 - 2400
Government Holdings Share of
Profit Oil/Profit Gas in Contract
Area
Contractor Share of Profit
Oil/Profit Gas in Contract Area
MMBOE
0 - 200
>200 - 400
Cumulative Available
Oil/Available Gas from
Contract Area
PELSurface Area Rental Training Obligations:
Exploration
Lease
�Initial Term: Rs. 3,500 / sq.km or Rs. 800 / sq.km each year or part thereof
�Each Renewal: Rs. 5,000 / sq. km or Rs. 2,750 / sq. km each year
�Initial Term: Annually - Rs. 7,500 / sq. km �Renewal: Annually – Rs. 10,000 / sq.km
or part thereof
or part thereofor part thereof
Exploration
�USD 25,000/year - exploration phase (Onshore)
� USD 50,000/year - development and production (Onshore)
�USD 50,000/year - exploration phase (Offshore)
�USD 250,000/year - development and production (Offshore)
Cumulative Production Amount(MMBOE) (USD)
At start of commercial production 600,000
30 1,200,000
60 2,000,000
80 5,000,000
100 7,000,000
GOVERNMENT OBLIGATIONS
Social Welfare Production Bonus
a. During exploration stage USD 30,000 per Licence Yearuntil Commercial Production:
b. During Commercial Amount/Lease Year (USD) (For all Zones) Production Phase (BOE/d)
Less than 2,000 50,000 (Zones O & I); 37,500 (Zones II & III)
2,000 - 5,000 100,000 (Zones O & I); 75,000 (Zones II & III)
5,000 - 10,000 200,000 (Zones O & I); 150,000 (Zones II & III)
10,000 - 50,000 400,000 (Zones O & I); 300,000 (Zones II & III)
More than 50,000 700,000 (Zones O & I); 525,000 (Zones II & III)
PELCHAIRMAN & BOARD OF DIRECTORS
Mr.Chairman & Chief Executive
ZAHEERUDDIN
Mr.Director
ZAFAR IQBAL Mr.Director
MOEENUDDIN Mr. SHAHZAD ZAHEERDirector
Mr. SHAHBAZ ZAHEERDirector
PELRECOGNITION OF SERVICES
The Group’s founder Chairman, Mr. Zaheeruddin, has been bestowed upon a prestigious civil award, Tamgha-e-Imtiaz (Medal of Distinction), by the President of Pakistan,
in recognition of his outstanding services to the Oil, Gas and Power Sectors. The Award was given to him by the Governor of Punjab on behalf of the President of Pakistan
PELSENIOR MANAGEMENT
Dr. Gulfaraz AhmedChief Operating Officer
Mr. Edwin G Bowles SGM (London Office)
Mr. Khalid RahimGM Production & Planning
Mr. Tariq Fatemi Senior Executive Vice President
International Affairs
Mr. Munir AhmedAdvisor Technical
Dr. Mahmood-Ul-HassanSGM Exploration
Mr. Shahid AhmadAdvisor Concession & Corporate
Affairs / Head of Exploration
Mr. S. A. RehmanSenior General Manager
Operations
PELSENIOR MANAGEMENT
Mr.Shahid-Ul-KhairiGM Exploration
Brig. (R) M Saleem GM Co-ordination
Mr. Khawaja ManzoorGM Procurement
Mr. Mohammad JamilGM Drilling
Air Cdre (R) M.Yousaf JavedDGM Finance
Lt Col (R) Azhar IqbalManager HR and Admin
Mr. Azam MalikGM Exploration
Mr. M. Maroof GM Geophysics
Mr. Amir HameedGM Taxation
Dr. Rafiq ShaikhGeneral Manager
Process
TECHNICAL TEAM
Mr. Muhammad YousufManager Prospect Generation
Mr. Muzaffar Ali KhanManager Production
Mr. Naveed AkramGeneral Manager
Reservoir Management
Mr. Abdul Majeed AnwarGeneral Manager Special Projects
Mr. Haider Ali ShahManager Exploration
Mr. Amjad Waheed Qureshi Manager Geology
Ms. Farah ShafiqueSr. Geophysicist
Mr. Faisal SheikhSr. Geophysicist
PEL
PELFINANCE & COMMERCIAL TEAM
Mr. Talha Waheed
Mr. Ubaid Rehmat Mr. Shahzad Ashraf Miss Mehreen Mir Mr. Jawad Ahmed
Mr. Kamran Shuja Mr. Adeeb Ali Mirza Mr. Assad Saeed
Ms. Zainab Nayyar
PEL
Mr. Azhar-ul-IslamVice President Business Development
Syed Haider AbbasManager IT
Maj (R) Kamran ShahidAssistant Manager (Field Operations)
Col (R) Shujaat Ghumman Manager Training &
Social Welfare
Mr. Salman RashedBusiness Development
Consultant
Syed Azim SabirManager Graphics
PELGROWTH……
Established
Growth
Present Status
�PEL was established in 1994, by Mr. Zaheeruddin, who is the founding Chairman and Chief Executive
�In less than 18 years, PEL has grown into a highly reputable and successful E&P company
�It has the largest exploration acreage among indigenous private sector companies and is operating both within the country and abroad
�PEL has the distinction of being the first private petroleum company of Pakistan going abroad to the Kingdom of Morocco for exploration and development of oil & gas, as an Operator
PEL
Currently operates nine onshore and one offshore exploration licences, five D&P/Mining leases and one non-operated concession in Pakistan
Operating three onshore permits in the Kingdom of Morocco, as one of the pioneer Pakistani companies to enter the region, in partnership with ONHYM (the Moroccan National Petroleum Company)
Presently producing natural gas from four gas fields
Recently production has commenced from Koonj gas discovery in Sukkur Block operated by Mari Petroleum Company. PEL has 41.2% working interest in this Block
The company along with its joint-venture partners has invested over US$ 200 Million in the past and plans to invest over US $ 300 Million on exploration and production during the next two years
GROWTH
PELJOINT VENTURE PARTNERS
Oil & Gas Development Company Ltd, Pakistan
Government Holdings Private Limited, Pakistan
Pakistan Petroleum Limited, Pakistan
Mari Petroleum Company Limited, Pakistan
Oil & Gas Investments, Pakistan
Pyramid Energy International Incorporated, Canada
Frontier Holdings Limited, Canada
RONTIER HOLDINGS LIMITEDA SUBSIDIARY OF JURA ENERGY CORP
Gulf Petroleum Exploration International, Kuwait
GPX
Sherritt International Oil & Gas Limited, Canada
sherritt
Spud Energy Private Limited, Australia
Spud Energy (Pty) Ltd
BP Exploration (Alpha) limited
Office National des Hydrocarbures et des Mines, Morocco
ONHYMONHYM
The range and diversity of Company’s reputable Joint Venture Partners reflect their
confidence in the ability and competence in PEL as an Operator
MPCL
PELMISSION & VISION
To effectively participate in petroleum exploration and production by spreading the risk andsharing the reward and enhancing knowledge base through alliances and joint ventures with keyE&P companies nationally and internationally
To develop a sound professional base with cutting edge technology and knowledge to emerge asa global E&P player
To maximize returns to all the joint venture partners and contribute to the economy of the country
To protect and preserve environment in all its operations
To enhance reserve base and production level through diligent exploration, acquisition and rapiddevelopment of available resources
To look for joint ventures/mergers/acquisitions and strategic alliances/networking with other E&Pcompanies
PELEXPLORATION & PRODUCTION PORTFOLIO
Exploration Licences (Onshore)
�Mirpur Mathelo �New Larkana �Badin IV South�Mirpur Khas West�Kaloi�Sukkur (Non-Operated)
�Salam�Badin IV North �Jhangara�Sanghar East�Hamza Discovery (Applied for Commerciality)
Exploration Licences (Offshore)�Offshore Indus – J
Exploration Permits Morocco (Onshore)
�Haha-1�Haha-2�Haha-3
Development and Production / Mining Leases
�Hasan Hasan D&PL�Khanpur D&PL�Badar ML
�Sadiq D&PL�Kandra D&PL
PELEXPLORATION PORTFOLIO (PAKISTAN)
Exploration Licences in
PakistanWIOs Area (km²)
Mirpur Mathelo (2769-9)PEL (Operator) 35 %
FHL 35 %, GPX 25%, GHPL 5 % (Carried) *1,030.68
Salam (2769-13) PEL (Operator) 37.5%, FHL 37.5%, GPX 25% * 200.22
New Larkana (2768-10) PEL 100 % 2,425.96
Badin IV North ( 2468-6) PEL (Operator) 47.5% , FHL 27.5%, GPX 25% 1,246.03
Badin IV South (2468-5) PEL (Operator) 47.5%, FHL 27.5%, GPX 25% 1,265.33
Offshore Indus-J (2266-4) PEL (Operator) 67%, BP 33% (under assignment to PEL ) 2,436.30
Jhangara (2567-5) PEL (Operator) 40%, OGIL 60% 357.19
Mirpur Khas West (2568-16) PEL 100 % 199.26
Sanghar East (2669-5) PEL 100 % 2,493.13
Kaloi (2468-8) PEL 100 % 2,485.14
* GPX and FHL have given notice for assignment of their interest to PEL
PELMIRPUR MATHELO BLOCK
Middle Indus basin2
Area: 1030.68 kmLocation: Sukkur and Ghotki Districts, Sindh ProvinceWorking Interest: PEL 35% (Operator), FHL 35%, GPX 25%,
GHPL (carried) 5% Play types: Structural/stratigraphic in Sui Main Limestone
(Eocene), Lower Goru (K)Hydrocarbon play: Gas/condensateProspectivity Zone: IIISurrounding oil & gas fields: Mari(8.2 TCF), Qadirpur(5.5 TCF), Rehmat (114
BCF) and Badar(100 BCF)Reserves exposure: Over 2 TCF
*
Work commitment
Work completed:
Work in progress
:
50 & 150 lkm 2D seismic and 1 exploratory well
Seismic acquired: 253 lkm 2D
Seismic purchased: 2060 lkm 2D
Seismic processed/reprocessed: 1716 lkm 2D
Well data purchased: 2 wells
Leads/prospects mapped: 5
Exploratory wells drilled: 1
Reservoir evaluation through seismic inversion interpretation
Remaining Work Commitment: 150 line km 2D seismic
:
Stratigraphic play interpretation
Structural/stratigraphic/reservoir play modeling
G & G in progress
Mari
8.2 TCF
Qadirpur
5.5 TCF
Badar
100 BCF Rehmat
114 BCF
Miano
537 BCF
Kandra
2.86TCF
175 TCF
Haseeb
200 BCF
Mr
ur Mhel
o
i p
at
* GPX and FHL have given notice for assignment of their interest to PEL
PELPELMiddle Indus Basin
2Area: 200.22 kmLocation: Jacobabad and Ghotki Districts, Sindh ProvinceWorking Interest: PEL 37.5 % (Operator), FHL 37.5 %, GPX 25 %Play types: Structural in Sui Main Limestone (Eocene)Hydrocarbon play: GasProspectivity Zone: IIISurrounding oil & gas fields: Qadirpur (5.5 TCF), Kandhkot (1.6 TCF) and
Badar (100 BCF)Reserves exposure: 400 BCF
*
Work Commitment:
Work completed:
Work in progress:
30 lkm 2D seismic and 1 exploratory well
Seismic acquired: 134 lkm 2DSeismic data purchased: 520 lkm 2DSeismic data processed/reprocessed: 654 lkm 2DWell data purchased: 3Leads/prospects mapped: 2Reservoir evaluation through seismic inversion interpretation
In house G & G studiesStructural/stratigraphic/reservoir play modelingPreparations in hand to drill an exploratory well
SALAM BLOCK
Qadirpur5.5 TCF
Haseeb200 BCF Mari
8.2 TCF
Kandra2.86 TCF
175 TCF
Badar100 BCF
Rehmat114 BCF
Miano537 BCF
Khandkot1.6 TCF
* GPX and FHL have given notice for assignment of their interest to PEL
PELBADIN- IV NORTH BLOCK
Lower Indus Basin2
Area: 1246.03 kmLocation: Hyderabad and Thatta districts, Sindh provinceWorking Interest: PEL 47.5 % (Operator), FHL 27.5 %, GPX 25 %Play Types: Tilted fault blocks, structural/stratigraphic in
Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic)
Hydrocarbon play: Oil, Gas & CondensateProspectivity Zone: IIISurrounding oil & gas fields: The surrounding oil and gas fields operated by
UEPL (formerly UTP/BP) have already produced over 185 MMBO and 1.5 TCF gas
Reserves Exposure: 25 MMBO & 200 BCF
Work commitment:
Work completed
Work in progress:
150 lkm 2D seismic & 3 exploratory wells
Seismic acquired: 300 lkm 2D seismic 2
Seismic data purchased: 4493 lkm 2D & 993 km 3DSeismic data processed/reprocessed: 1460 lkm 2DWell data purchased: 41Leads/prospects mapped: 14Exploratory wells drilled: 2
In-house G & G studies to upgrade the leads to prospect level.Vintage seismic interpretation to delineate stratigraphic trapsRe-Processing of one line through Hajirah Prospects is in hand.
BADIN IV NORTH
PELBADIN – IV SOUTH BLOCK
Lower Indus Basin2
Area: 1265.33 kmLocation: Thatta and Badin Districts, Sindh ProvinceWorking Interest: PEL 47.5 %(Operator), FHL 27.5 %, GPX 25 %Play Types: Tilted fault blocks, structural/stratigraphic in
Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic)
Hydrocarbon play: Oil, Gas & CondensateProspectivity Zone: IIISurrounding oil & gas fields: The surrounding oil and gas fields operated by
UEPL (formerly UTP/BP) have already produced over 185 MMBO and 1.5 TCF gas
Reserves Exposure: 30 MMBO & 700 BCF
Work commitment:
Work completed
Work in progress:
100 lkm 2D seismic & 4 exploratory wells
Seismic acquired: 483 lkm 2D seismic 2
Seismic data purchased: 2673 lkm 2D & 626 km 3DSeismic data processed/reprocessed: 2322 lkm 2DWell data purchased: 29 Leads/prospects mapped: 10
In-house G & G studiesVintage seismic interpretation to delineate stratigraphic trapsPreparing to drill two exploratory wells back to back.
PELJHANGARA BLOCK
Lower Indus Basin2
Area: 357.19 kmLocation: Dadu District, Sindh ProvinceWorking Interest: PEL 40% (Operator),OGIL 60%Play types: Structural & stratigraphic in Cretaceous sandsHydrocarbon play: Gas/ condensateProspectivity Zone: IIISurrounding oil & gas fields: Zamzama (2.32 TCF + 11.68 MMBC) & Bhit
(1.6 TCF) producing from Pab and Badhra (500 BCF) producing from Mughal Kot
Reserves Exposure: 350 BCF
Work commitment:
Work completed:
Work in progress:
200 lkm 2D seismic acquisition
Seismic data purchased: 253 lkm 2DProspects mapped: 2Exploratory wells drilled: 1Structural modeling through Beicip FranlabGeological field work mapping and outcrop samplingStructural and reservoir evaluation studyPetrophysical analysis of Pab and Mughal Kot intervals
In-house G&G studiesStructural/stratigraphic/reservoir play modelingPreparations are in hand to carry out s geological field study before acquiringseismic and drilling of an exploratory well.
Zamzama 2.32 TCF &11.68 MMBC
Bhit1.6 TCF
Badhra110 BCF
UEPL (formallyUTP/BP), OGDCL & PPL
operated fields
PELKALOI BLOCK
Lower Indus Basin2
Area: 2485.14 kmLocation: Badin and Mithi Districts, Sindh Province Working interest: PEL (Operator)100% Play types: Tilted fault blocks & stratigraphic in Lower
Goru and Sembar sands (K) and Chiltan carbonates (J)
Hydrocarbon play: Oil, gas/condensateProspectivity Zone: IIISurrounding oil & gas fields: The surrounding oil and gas fields operated by
UEPL (formerly UTP/BP), located to the west, have already produced over 185 MMBO and 1.5 TCF gas
Reserves exposure: 15 MMBO & 350 BCF
Work commitment
Work completed:
Work in progress
:300 lkm 2D seismic and 2 exploratory wells
2D seismic purchased: 506 lkm 2DLeads/prospects mapped: 4
Vintage data interpretation at Lower Goru Basal sandStructural/stratigraphic/ reservoir play modelingWork in progress on evaluation of petroleum system in the BlockU
EP
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UT
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op
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fie
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PELMIRPUR KHAS WEST BLOCK
Lower Indus Basin2
Area: 199.26 kmLocation: Hyderabad & Dadu Districts, Sindh ProvinceWorking Interest: PEL (Operator) 100 % Play Types: Tilted fault blocks, structural/stratigraphic in
Lower Goru sands (Cretaceous) and Chiltan carbonates (Jurassic)
Hydrocarbon play: GasProspectivity Zone: IIISurrounding oil & gas fields: OGDCL, PPL and UEPL (formerly UTP/BP) oil,
gas/condensate fields are located north of Badin Blocks that have already produced 83 MMBO and 337 BCF gas
Reserve Exposure: 200BCF
Work commitment:
Work completed:
Work in progress
250 lkm 2D seismic and 3 exploratory wells
Seismic acquired: 176 lkm 2DSeismic purchased: 305 lkm 2DSeismic processed/reprocessed: 276 lkm 2DWell data purchased: 8Leads/prospects mapped: 3
In-house G&G studiesSequence stratigraphy evaluation of L. Goru sandsStructural/stratigraphic/reservoir play modelingPreparations to drill an exploratory well
UEPL(formallyUTP/BP)operated
fields
UEPL (formallyUTP/BP)
OGDCL & PPLoperated fields
PELSANGHAR EAST BLOCK
Lower Indus Basin2
Area: 2493.13 kmLocation: Sanghar and Khairpur Districts Sindh
ProvinceWorking interest: PEL (Operator) 100 %Play types: Structural/stratigraphic in Lower Goru,
Sembar (Cretaceous) sands & Jurassic carbonates
Hydrocarbon play: Oil/gasProspectivity Zone: IIISurrounding oil & gas fields: SGL Gas Field, Rajasthan, India (Focus
Energy) and Lala Jamali, Sindh (OGDCL)Reserves exposure: 200 BCF
Work Commitment:
Work Completed:
Work in Progress:
200 lkm 2D seismic and 4 exploratory wells
Seismic purchased: 685 lkm 2DSeismic reprocessed: 36 lkm 2DWell Data Purchased: 2 wellsLeads/prospects mapped: 2
Vintage seismic interpretationStructural/stratigraphic/reservoir play modelingWork in progress on evaluation of petroleum system in the Block
UEPL (formallyUTP/BP)
OGDCL & PPLoperated fields
Lala Jamali Gas Field(OGDCL), in L. Goru,
flowed 1130 btu/scf gas
SGL Gas Field 3100min L. Goru, flowed 31 MMSFD,
about 950btu/scf gas
PELNEW LARKANA BLOCK
Lower Indus Basin2
Area: 2425.96 kmLocation: Larkana & Shikarpur Districts, Sindh Province Working interest: PEL (Operator)100 % Play types: Structural in Sui Main Limestone (Eocene),
Dunghan carbonates (Paleocene)and stratigraphic in Pab Sandstone (Cretaceous)
Hydrocarbon play: Gas/condensateProspectivity Zone: IIISurrounding oil & gas fields: Mehar (434 BCF), Mazarani (183 BCF), Haseeb
(200 BCF), Kandra (2.86 TCF), Block 22 (175 BCF)
Reserves exposure: 200 BCF
Work commitment:
Work completed:
Work in progress:
100 lkm 2D seismic and 3 exploratory wells
Seismic data purchased: 556 lkm 2DWell data purchased: 1Leads/prospects mapped: 2
In-house G & G studiesStructural/stratigraphic/reservoir play modelingPreparing to acquire 2D seismic before drilling a well
Hasan, Khanpur,Sadiq & Hamza
175 BCF
Kandra2.86 TCF
Haseeb200 BCF
Mazarai183 BCF
Mehar434 BCF
PEL
SUKKUR BLOCK (NON-OPERATED)
Middle Indus Basin2
Area: 2435.4 kmLocation: Sukkur and Ghotki Districts, Sindh ProvinceWorking Interest: PEL 41.2%, MPCL (Operator) 58.8%Play types: Structural in Sui Upper & Sui Main Limestones
(Eocene) and stratigraphic in Lower Goru sands (Cretaceous)
Hydrocarbon play: Gas/condensateProspectivity Zone: IIISurrounding oil & gas fields: Block 22 (175 BCF), Haseeb (200 BCF), Kandra
(2.86 TCF), Rehmat (114 BCF) and Badar 100 BCF
Reserves exposure: 200 – 300 BCFWork commitment:
Work completed
Work in progress:
Seismic Acquisition & Processing of100 lkms and 3 exploratory wells
Seismic acquired: 460 lkmSeismic data purchased: 909 lkm 2DSeismic data processed/reprocessed: 1200 lkmWell data purchased: 5Leads/prospects mapped: 5Wells drilled: 3Discovered Koonj Gas Field, which is under extended well testing (EWT). Present production 2 MMSCFDRegional geological study of Central Indus Basin
In-house G & G studiesVintage seismic interpretationStructural/stratigraphic/reservoir play modelingPlanning to undertake sequence strat study
Mari8.2 TCF
175 BCF Khandkot1.6 TCFHaseeb
200 BCF
Qadirpur5.5 TCF
Badar100 BCF
Miano537 BCFKandra
2.86 TCF
Rehmat114 BCF
PELOFFSHORE INDUS – J BLOCK
Offshore Indus Basin2
Area: 2436.30 kmLocation: 200 km south of KarachiWorking Interest: PEL (Operator) 67 %, BP 33% (under assignment to
PEL)Play types: Channel/levee sands/carbonate buildups (Paleogene –
Neogene)Hydrocarbon play: Gas/condensateProspectivity Zone: OWells in the area: 13 wells (PakCan-1 flowed 3.7 MMSCFD)Reserves exposure: 25 - 30 TCF
Work commitment
Work completed:
Work in progress:
:186 Work Units (WU) One WU = 10 lkm 2D or 1 km² 3D seismic
Seismic acquired: 936.5 lkm 2D& 550 km² 3D (643.6 WU)
Seismic processed to PSDM level: 550 km² 3D cubeLeads/prospects mapped: 2 on 3D cube and 3 on 2D data
In-house G & G studiesStructural/stratigraphic/reservoir and source play modelingA study covering reservoir characterization and pore pressures as well as economics is proposed to be assigned to CGG
PEL
OIL AND GAS POTENTIAL EXPLORATORY BLOCKS (PAKISTAN)
Mirpur Khas West
0.20 TCF
Jhangara
0.35 TCF
Salam
0.40 TCF
New Larkana
0.20 TCF
Badin IV North
0.20 TCF
Badin IV South
0.70 TCF
Sanghar East
0.20 TCF
Kaloi
0.35 TCF
Badin IV North
25 MMBBL
Badin IV South
30 MMBBL
Kaloi
15 MMBBL
Reserve Exposure for Offshore J Block is estimated at 25 – 30 TCF
PELRecoverable Reserves (Operated Fields)
Recoverable reserves from Block-22, Badar and Kandra Fields are estimated to be over 3 TCF of Gas
PEL
Gas Production Share 2011 – 2012
POL
0.53%
OGDCL
21.38%
Dewan
0.71%
OMV
11.00%
OPII
0.33%MOL
7.57%
PEL
0.67%
PetronasEni Pakistan
11.86%
TULLOW
0.01%
PPL
18.86%
BHP
9.73%
BP
4.39%
MGCL
12.65%
0.33%
PELHASSAN, SADIQ & KHANPUR D & P LEASES
Hasan D & P Lease
Khanpur D & P Lease
Sadiq D & P Lease
Gas Production 7.702 MMSCFD (Jan 2013)
PELHASSAN, SADIQ & KHANPUR D & P LEASES…
Block – 22 Fields on production since December 2000
Reservoir:
Cumulative production:
Number of producing wells:
Hasan-4 well to be drilled in 2013
Sui Main Limestone(SML) Eocene
61.82 BCF (as on 31-01-2013)
06
PELHASSAN, SADIQ & KHANPUR D & P LEASES…
�Block-22 was awarded in 1994
�Four discoveries namely Hasan, Sadiq, Khanpur & Hamza have
been made
�Three D&P Leases have been granted whereas the Hamza DOC has
been submitted to DGPC for approval
�Production Facilities consist of Dehydration Unit, Amine sweetening
unit, Compressors, API separator, Evaporator and Condensate
handling unit.
�Plan to drill an additional well in Hasan Lease to enhance production
PELBADAR MINING LEASE
Badar Mining Lease was granted in 2002, GSA was
signed inAugust, 2004 and production from the field
commenced from SMLreservoir inApril, 2006.
Current production rate is 13.62 MMSCFD.
Cumulative production from the date of first gas
delivery is 37.21 BCF (as on 31-01-2013).
The field is surrounded by major gas fields and has
an upside potential of stratigraphic and structural
plays
Badar-2 development well will be drilled in 2013 to
enhance production. Efforts are in hand to find a
suitable rig.
Badar 13.62MMSCFD
PELKANDRA D&PL
Lease Granted
Location/Area
Objectives
Recoverable Reserves
Wells Drilled
Power Project
Future Plan
January 2006
Khairpur and Sukkur Districts/314.43 Km²
Primary –SML (Eocene)
Secondary – Lower Goru Sands / Chiltan
Limestone
2.86 TCF (SML)
3 shallow, 1 deep
GOP approved 120 MW power plant using
Kandra Gas as fuel
Preparations in hand to develop the field
PELKANDRA FIELD DEVELOPMENT & POWER PROJECT
The field development and power project is estimated to cost about
US $ 95 million and US $ 165 million respectively
FIELD DEVELOPMENT
POWER PROJECT
�The low heating value Kandra gas (150 BTU/SCF) will be used as fuel for
power generation after processing and blending with pipeline quality gas
�The field development envisages drilling and completing 12-14 additional
wells, surface gathering lines and central processing facility for producing
120 MMSCFD of raw gas
�This gas, after processing, will yield 40 MMSCFD gas of 330 BTU/SCF
heating value
�The processed Kandra gas will be commingled with 10 MMSCFD pipeline
quality gas of 900-950 BTU/SCF heating value to yield 50 MMSCFD of +430
SCF heating value
�This gas will be used as fuel for Combined Cycle Power Project of 120
megawatts electricity to be set up by the Kandra Power Company.
PEL
Essaouira Basin2
Area: 4919 km (about 25% of Essaouira Basin) Location: 550 km southwest of Capital RabatWorking interest: PEL75% (operator), ONHYM (carried) 25%Play types: Structural/stratigraphic in Triassic sands, Jurassic
sands/carbonates and Paleozoic clastics Hydrocarbon play: Gas, oil and condensateSurrounding oil & gas fields: Seven oil and gas fields about 60 km to the north
with estimated reserves of 500 BCF and 50 MMB oil/ condensate in Triassic & Jurassic sands and carbonates. Sidi Rhalem oil field produced 9 MMBBL of oil from Jurassic Carbonates
Resource exposure: 8 TCF and 400MMBBL
Work commitment:
Work completed:
Work in progress:
70 km² 3D and 1 well
Seismic acquired: 139 km² 3D Seismic data reprocessed: 132 lkm 2DLeads/prospects mapped: 04Salt induced surface structures
2delineated , 40-80 km each: 10Petrographic study of Triassic reservoirsGeochemical modelingGravity magnetic data evaluation
In-house G & G studiesEvaluation of salt cored structuresPreparing to drill an exploratory well
HAHA PERMITS MOROCCO
PEL
REGULATORY REGIME
�Politically stable & progressive country
�Investment friendly fiscal regime
�Government carried interest is limited to 25% in
exploration phase
�Royalty 10% on oil and 5% on gas
�No surface rental levied
�No petroleum duty
�No currency control
�Tax free import of equipment, material and
consumables
�Corporate Tax holiday during ten years regular
production
HAHA PERMITS MOROCCO
PEL
Large salt induced anticlines mapped indicating potential gas reserves of several TCF
HAHA PERMITS MOROCCO
PEL
NoSURFACE
STRUCTURES
EXPOSED
STRATARESERVOIR TARGETS
AREA
(km2)
1 Amsittene diapir Jurassic Triassic/Paleozoic 80
2 Ihchech Jurassic Triassic/Paleozoic 56
3 Ihchech south Jurassic Triassic/Paleozoic 70
4 Baulanouar Cretaceous Jurassic/Triassic/Paleozoic 60
5 Agouti Cretaceous Jurassic/Triassic/Paleozoic 30
6 Imakherim Cretaceous Jurassic/Triassic/Paleozoic 15
7 Adar yssi Cretaceous Jurassic/Triassic/Paleozoic 55
8 Assaka Cretaceous Jurassic/Triassic/Paleozoic 15
9 Aziar Cretaceous Jurassic/Triassic/Paleozoic 40
10 Imouzzer Triassic Paleozoic 48
HAHA PERMITS MOROCCO - SURFACE STRUCTURE
PELCORPORATE SOCIAL RESPONSIBILITY
Education
Drinking Water Disaster ManagementDisaster Management Road Infrastructure
Vocational Training Health
PEL
CORPORATE SOCIAL RESPONSIBILITY (Message from the Chairman)
As a responsible corporate entity, PEL is committed toenhancing the well being of the underprivileged communitiesin and around its concessions and lease areas, by providingclean drinking water, education, health facilities, localemployment and infrastructure development. Every yearmillions of dollars are being spent on community welfareprograms.
It gives me great pleasure to confirm that PEL hassucceeded in improving the well being of the communities living in around ourconcessions in addition to providing them health and educational facilities. PELis committed to continuing these efforts into the future
ZaheeruddinChairman and Chief Executive
PEL
As per the CSR policy outlined by the Chairman, PEL as aresponsible corporate entity is fully aware and committed to its
social responsibility towards the local communities in its area of operation
PEL as per its CSR Policy has established a track record ofimplementing social welfare schemes
PEL made a significant contribution (US$ 29,750) in constructionof eight classrooms at HMB Trust’s Institute of Science &
Technology, Shikarpur, Sindh
Provided funds for the establishment of Petroleum TrainingInstitute in Khairpur, Sindh
PEL undertook installation of Electric Water Coolers at variousschools, colleges, libraries and parks at a cost of US$ 33,688
PEL made a major contribution (US$ 456,260) in theestablishment of regional Petroleum Technical Training Institute
at Khairpur, Sindh
CORPORATE SOCIAL RESPONSIBILITY
PEL
CORPORATE SOCIAL RESPONSIBILITY…(RECENT SOCIAL WORK ACTIVITIES)
PEL has provided a training opportunity to the locals to participate in Oil & Gas Sector
PEL
CORPORATE SOCIAL RESPONSIBILITY…(RECENT SOCIAL WORK ACTIVITIES)
Provision of uniforms for orphan children at Bait ul Mal Pakistan
PEL
CORPORATE SOCIAL RESPONSIBILITY…(RECENT SOCIAL WORK ACTIVITIES)
Provision of medical facilities such as mobile dispensaries/ambulances for emergencies
PEL
Corporate Social Responsibility…(Recent social work activities)
Donated a vehicle to a well reputed NGO
PEL
CORPORATE SOCIAL RESPONSIBILITY…FLOOD RELIEF OPERATIONS
Unprecedented and devastating floods hit the entire country in the monsoon months of July and
August, 2010. People living in the vicinity of Block-22 & Badar fields were seriously affected by these
floods. PEL in line with its CSR Policy provided relief to the flood affectees by taking the following
actions:
�supplying cooked meals
�ration and other necessities like kitchen utensils
�boats for rescue works (one wooden boat and one fiber glass motor boat with 25HP engine)
�Organized distribution schemes of emergency food packs and relief goods (cooked meals
and bags (20 kg each) containing flour, rice, sugar, grain seed, cooking oil, milk and tea)
PEL also organized field trips of qualified medical teams through mobile dispensaries for helping the
affected people against exposure to water borne and other diseases.
PELCORPORATE SOCIAL RESPONSIBILITY…
TRAINING POLICY
PEL is committed to imparting skills related to oil & gas industry requirements. It has proudly invested over One
Million US Dollars during the last four years (i.e. 2008 – 2011) on training and development.
The main objective of training and development is to help develop key competencies that enable individuals to
perform their jobs successfully.All training and development programs are geared towards:
�Strengthening the job skills / knowledge
�Improving operational efficiency and productivity
Key TrainingActivities attended by our employees during 2011 are as follows:
�Oil & Gas Summit,Asia – Malaysia
�Seminar on Testing Through New Technology arranged by Schlumberger – Islamabad, Pakistan
�Procurement & Inventory Management arranged by Skill Development Council
�Wireline Log Interpretation arranged by OGTI – Islamabad, Pakistan
�Business Writing Skills arranged by Skill Development Council
PELSTATUTORY PAYMENTS TO THE GOVERNMENT
PEL has contributed an amount of over US$14.5 million from July, 2003 till July 2012 on account of statutory payments to theGovernment of Pakistan covering royalty,area rental, marine research, productionbonus, signature bonus, training, socialwelfare, general sales tax, excise duty, with-holding tax and custom duty.
PELHEALTH, SAFETY, SECURITY & ENVIRONMENT POLICY
Provide adequate training, information and instructions on health,
safety and hazardsEnsure protection of the
environment
Follow and maintain safe systems of work
To candidly audit and report all HSSE performances
Provide adequate and proper facilities,
equipment and safety
Commit towards a safe environmentalmanagement
Regard all accidents as preventable.
PELFUTURE OUTLOOK…
To exploit knowledge and evolving technology and pursueinternational opportunities for exploration and acquisition of
producing assets to become a leading E&P company
To attract serious E&P companies into Joint Venture Partnershipsin its exploration and production assets in Pakistan and overseas,
especially Morocco
To aim at an aggressive corporate growth through prudent goaloriented strategies and risk management by spreading the risks
and sharing the rewards
PELEXPECTED EXPONENTIAL RISE
Growth within Pakistan
Expansion of PELoperations
internationally
Achievingsustainability, and
making PEL a successful global energy company
PETROLEUM EXPLORATION (PVT) LTD.
PEL
20, Margalla Road, Sector F-8/3,Islamabad, Pakistan
Phones: Tel: 92-51-2287170-74 (5 lines) Fax: 92-51-2287154-55 (2 Lines)
Corporate Head Office
Finance & Marketing Division Technica l Off ices
E-Mail: [email protected], [email protected] &
Web: www.shahzadintl.com.pk
15, Nazimuddin Road, Sector F-10/4, Islamabad, Pakistan
Phones: 92-51-2299031- 36 (6 Lines) Fax: 92-51-2299028
66, Street 25, Sector F-10/1, Islamabad, Pakistan
Phone 92-51-2103247-9 (3 Lines) Fax: 92-51-2104573