KPOGCL – Company Profile:
Government of Khyber Pakhtunkhwa, Pakistan being cognizant of Oil & Gas Reserves and potential in the energy sector, established Khyber Pakhtunkhwa Oil & Gas Company Limited also known as KPOGCL. Incorporated in February 2013 as a corporate entity after the 18th Constitutional Amendment in Law, KPOGCL is entrusted with the responsibility of carrying out Oil & Gas Exploration & Production activities itself, but also to allure more foreign & local E&P Companies by ensuring them with the requisite logistics and technological support, thus paving path for fast track Exploration & Production activities in KP Province. KPOGCL, Being Provincial Governments patronized can very expediently act as an interface between the E&P Companies and all other government agencies. Therefore KPOGCL is actually performing the role of “One Window Operations”. Under the Petroleum Policy – 2012, KPOGCL is a “Provincial Holding Company” and it is a facilitator to different National & International E&P Companies working in KPK Province. Further More, KPOGCL is also investing in Procurement of Technical Equipment that includes Drilling Rigs and Seismic Recorder for Data Acquisition – all aimed at reducing the energy deficit of Pakistan. KPOGCL since inception is an active member of Pakistan Petroleum Exploration & Production Companies Association i.e. PPEPCA, Society of Petroleum Engineers i.e. SPE and Petroleum Institute of Pakistan i.e. PIP. KPOGCL is being managed by an independent Board of Directors, where the members are mostly experts from Private Sector with Mr. Raziuddin as Chief Executive Officer who has hands on experience for turning around today’s realities for Both Attock Refinery Limited & state owned OGDCL during his past leadership. KPOGCL is determined to explore/ exploit the untapped Oil & Gas resources in the province through its own resources along with Farm Out/ Farm in Agreements in collaboration with other International & local E&P Companies.
Why Invest In Kp Province
Khyber Pakhtunkhwa (KP) province in Pakistan since recent past 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 55% 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 with discoveries by OGDCL in Nashpa and Tal by MOL Pakistan Oil & Gas Co. B.V. Pakistan’s total Gas production is 4 Billion Cubic feet/day and LPG’s production is 2,500 tons/day. 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 with other key partners wanting to invest in Pakistan. LPG bottling plants are expanding 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 sector 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.
Incentives & Assistance By Governement Of Pakistan
As briefly stated above, the latest Petroleum Policy-2012, a one window facility offers tremendous incentives and hence providing 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 along with 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. 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 Honorable 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.
What KPOGCL Is Offering Non-Operatorship:
KPOGCL is offering 5% to 49% non-operatorship JV in 28 Concession Blocks of KPK Province with IRR forecasted between the range 30% to 45% considering rich potential of the province & geological studies. These concessions are owned by both Public and Private sector companies, working under Petroleum Concession Agreement. Operatorship For those E&P companies which desire to be Operator, KPOGCL can offer 7 blocks which are solely owned by KPOGCL under the Petroleum Policy 2012 arrangement. Interested parties can apply for field studies for competitive bidding. E&P Services Increasing requirements of Oil & Gas E&P 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.