Pakistan E&Ps_A ripe landscape!
Having gone through the annual PPIS report 2017, we hereby present a summary of the ongoing E&P activities in Pakistan. Altogether, 52 companies remained active in the sector with 23 possessing the operatorship rights. Overall, 343,547sq. kms of area remained under exclusive exploration licenses, representing 43% of Pakistan's total area. Activities remained focused on the on-shore areas as low oil price scenario (compared with the highs of >US$100/bbl) made off-shore drilling economically unfeasible. Despite various companys' insistence, further blocks were not put up for bidding by the ministry, while 4 applications remained pending during FY17 alone. The DGPC although approved 8 D&P leases with 4 in favor of PPL. Taking lead from significant seismic data acquired in FY16, 36 exploratory wells were spudded during the period, with over 65% in Sindh alone. Focus shifted towards the recently awarded blocks in Balochistan, where significant 2D seismic data was collected during the year. Overall success ratio was recorded at 53.8% against 46.2% in FY16, though a number of wells remain in the drilling/testing stage to date. Keeping in view the latest updates from the sector and our understanding based on discussion with technical experts, we believe the E&P sector might remain the center of attention as 1) the companies go for near term production enhancement in various areas, 2) low oilfield services push for introduction of latest techniques and 3) venturing into Balochistan for exploration activities. In this backdrop, PPL remains our preferred play with a Jun'18 NAV based TP of PkR239/sh.
Pakistan Petroleum Limited (PPL) is a supplier of natural gas. The Company is principally engaged in conducting exploration, prospecting, development and production of oil and natural gas resources. The Company operates nine producing fields, which include Sui, Kandhkot, Adhi, Mazarani, Chachar, Adam, Adam West, Shahdadpur and Shahdadpur West. It has working interests in approximately 20 partner-operated producing fields. Its partner-operated fields include Qadirpur Gas Field, Tal Block, Miano Gas Field and Sawan Gas Field. The Company, along with its subsidiaries, has a portfolio of approximately 40 exploration blocks, of which over 20 are operated by the Company, including Block-8 in Iraq, while approximately 20 blocks consisting of three offshore leases in Pakistan and two onshore concessions in Yemen are operated by joint venture partners. Its gas production from its operated and partner-operated fields is approximately one billion cubic feet of gas per day.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.