A monthly publication of Pakistan Petroleum Limited Vol.LV No.

4 November 2010

55th year of
publication

PPL clinches
ecretary Ministry of Petroleum and Natural Resources (MPNR) Imtiaz

S
third consecutive
Hussain Kazi visited Pakistan Petroleum Limited’s (PPL) head office on
November 22. This was his first visit to PPL after assuming charge.

MAP Award
Kazi was received
warmly by MD and
CEO Khalid Rahman
and members of the
management team

Kazi visits PPL

and given a detailed
akistan Petroleum Limited (PPL) achieved presentation on the

P another milestone by bagging the prestigious

Management Association of Pakistan’s (MAP)
27th Corporate Excellence Award in the Fuel and
Energy sector for the third consecutive year. This
award affirms the company’s adherence to best
corporate governance practices.
Chairman, PPL Board of Directors Hidayatullah
Pirzada and MD and CEO Khalid Rahman jointly
received the award from Dean and Director, Institute of
Business Administration and former governor State
Bank of Pakistan Dr. Ishrat Husain, who was chief
guest on the occasion. The event, held at Beach Luxury
Hotel, Karachi on November 23, drew business leaders
and print and electronic media representatives.
Members of PPL’s senior management, including DMD
(left to right) MD and CEO Khalid Rahman with Secretary MPNR
company’s business Imtiaz Hussain Kazi
operations and
activities and corporate governance practices.
Besides Rahman, the presentation was attended by DMD Asim Murtaza
Khan, SGM Fasih-uz-Zaman, GMCS Muhammad Yaqub, GMF and CFO
Kamran Wahab Khan, GME Moin Raza Khan and CE (BD) Rahat Hussain.
Kazi held wide ranging talks with the company’s management and
acknowledged the need for investment-friendly exploration and production
policies in order to boost the efforts of oil and gas companies as major
players in sustainable development of the country and future energy security.
Rahman highlighted PPL’s focus on delivering on its ambitious exploration
programme to enhance production and reserves replacement of hydrocarbons
while adhering to best practices and socially and environmentally responsible
citizenship. He added that he looked forward to the MPNR’s continued support
in steering the company towards its business objectives. n

Discovery in Tal Block

OL Pakistan Oil and Gas BV Block, the initial flow rate in the first

M (MOL) along with joint

Asim Murtaza Khan, SGM Fasih-uz-Zaman, GMCS M.
Yaqub, GMF and CFO Kamran Wahab Khan and GMIA
S. M. Khaledin were also present.
The MAP Corporate Excellence Awards, now in their
27th year, were instituted in 1982 to recognize
companies demonstrating outstanding performance
and best corporate governance practices through a
stringent two-tiered selection process based on
dividend payout followed by detailed financial and
venture partners Pakistan
Petroleum Limited (PPL), Oil and
Gas Development Company Limited
(OGDCL), Pakistan Oilfields Limited
(POL) and Government Holdings
(Private) Limited (GHPL) made a
discovery in the first reservoir from
its exploratory well Makori East-1,
being drilled in Tal Block located in
Kohat District. This is the fifth
discovery in Tal Block.
Makori East-1 will target multiple
reservoirs of various geological
target reservoir of the Lockhart
Formation at 3,400 meters with an
upper 50 meters of the drilled
section suggests that 3,200 barrels
of oil and 11 million metric cubic
feet of gas per day (MMscfd) may
be recovered from this site.
The drilling will continue during
the next three months. The full oil
and gas production potential of the
discovery from the Lockhart
Limestone as well as from deeper
reservoirs of Hangu, Lockhart,
Lumshiwal, Samana Suk, and Datta

2 3 4 5 10 12
corporate regime evaluations. n ages. According to estimates formations will be ascertained
provided by MOL, operator of Tal Conti…
INSIDE

Seismic ATC 2010: Seismic Enablement Successful PPL and

operation gains Strategizing for imaging through completion of PGNiG scope
momentum a Safe Energy technology Education technical job out business
Future competency pilot opportunities
after reaching the planned depth
and testing all potential reservoirs.
The Government of Pakistan
granted a Petroleum Concession
and Exploration License to MOL
for Tal Block in February 1999.
Initially, MOL’s stake was 35
percent with OGDCL, PPL and
GHPL as joint venture partners
with 30, 30 and five percent
working interest, respectively.
In 2001, POL also joined the
Tal consortium after acquiring
25 percent working interest
from MOL.
The discovery has shored the
confidence of the Exploration and
Production (E&P) sector in the
potential of the Kohat Plateau,
which is increasingly viewed as a
major base for hydrocarbons in
the future. Tal Block may not be
significant in terms of production
numbers at this point in time,
contend analysts. But the area
may well have the potential to
emerge as the flagship base for
E&P companies in the future.
This contention is supported
by the fact that Tal Block has a
55 percent estimated success
ratio compared with about 33
percent for the rest of the
country. Due to already existing
infrastructure, MOL plans to put
Makori-East-1 on production on
a fast track by the summer of
2011. So far, MOL and its
partners have invested USD 700
million in Tal Block.
The Makori East-1 discovery
was recorded on the fifth separate
geological structure of Tal Block,
resulting in MOL achieving a
milestone in Pakistan for the
highest number of discoveries on
separate structures in one block.
Other discoveries in the block
include Manzalai where
production was initiated at 250
MMscfd after its Central
Processing Facility in Manzalai
Development and Production
Lease was completed in early
2009. Makori, the second
discovery in the block, is
currently under Extended
Wellhead Testing while the third
and fourth discoveries,
Mamikhel and Maramzai, are
expected to become operational
in the next year.
Tal Block is located in Khyber
Pakhtunkhawa province and is
spread over the areas of Kohat,
Karak, Hangu and Bannu districts
and some areas of North
Waziristan and Orakzai agencies
of the Federally Administered
2
Tribal Areas. n
Seismic operation
gains momentum
he aggressive seismic operation initiated Survey operations in Kotri and Gambat South
T by Pakistan Petroleum Limited (PPL) in the
newly acquired Jungshahi and Kotri North
blocks in Sindh has gained momentum while
blocks are expected to commence early next
year, followed by Zamzama South, with special
equipment being mobilized for seismic coverage
recording of seismic data in Sirani Block has of the ecologically sensitive Manchar Lake.
been concluded. Meanwhile, the seismic survey
PPL staff visit Kotri North
in Barkhan Block remains ongoing and work has
also commenced at Naushahro Firoz Block. This
is the first time that the company has launched a
back-to-back four-crew seismic operation.
At Barkhan Block, nearly one third of the
survey is complete using dynamite as the
energy source. In Naushahro Firoz Block,
testing for selection of optimum acquisition
parameters has also been concluded and
seismic operations at Jungshahi and Kotri North,
both deploying Vibroseis as the primary energy
source, are nearly two-third complete.
The seismic survey at Sirani began in October
with acquisition of nearly 590 line kilometers of
data at a healthy per day production. Based on
field processed results, the quality of seismic
PPL staff with QC consultant Michael Stevenson
data is good. Despite the highly cultivated low (second right) in Kotri North Block
lying flood prone terrain, heavy rainfall and
obstacles on ground, the survey was completed n order to review the ongoing seismic
in a timely manner ensuring good data quality.
The credit for this goes to effective team work by
I operation at Kotri North, SMJO
Ghulam Farooq Maniar, SMDO S.
the contract crew and PPL’s employees. The Kaleem Akhter, SMPE Dr. Suhail Qadeer,
next steps for this block is the processing of the MBD Nauman H. Tirmizi and ME Anwar
newly acquired 2D data and its interpretation Farid visited the block on a day-trip.
and mapping, based on which 3D seismic The team reached the base camp in
survey may be initiated, as required. the morning where they were given a
In addition to the investments made in Health, Safety and Environment
Jungshahi, Kotri North and Sirani, an investment
briefing. Subsequently, they visited the
of USD 38 million is anticipated in Naushahro
seismic line location, saw the vibrators
Firoz which entails geological and geophysical
in action, reviewed data recording and
studies, 2D/3D seismic acquisition and drilling of
discussed different seismic operations
two exploration wells. For Barkhan Block,
approximately USD 50 million has been with the crew.
earmarked for work commitment of geological
and geophysical studies, 2D seismic acquisition In Kalat Block, a gravity and magnetic survey
of about 290 line kilometers and drilling of four was undertaken during 2010, which will be
exploration wells. followed by a seismic survey in 2011. In addition,
Subsequent seismic surveys planned by PPL 3D seismic surveys are planned for 2011 in
in the new exploration blocks include Kotri, PPL’s existing producing fields, including Sui,
Zamzama South and Gambat South blocks. Kandhkot and Chachar. n
November 2010
ATC 2010: Strategizing for a
Safe Energy Future
he Annual Technical
T Conference (ATC) is a
major event in the oil and
gas sector calendar that draws a
large and diverse crowd,
comprising academics, students,
industry professionals, engineers
and geoscientists.
Organized by the Society of
Petroleum Engineers (SPE) and
Pakistan Association of
Petroleum Geoscientists
(PAPG), ATC 2010 was held
between November 10 and 11
at the Serena Hotel, Islamabad
and focused on current best
practices and emerging
technology in the Exploration
and Production (E&P) sector. A
26-member delegation from
Pakistan Petroleum Limited
(PPL), including MD and CEO
Khalid Rahman, DMD Asim
Murtaza Khan and GME Moin
Raza Khan, was among the 900
participants who attended the
conference.
Minister for Petroleum and
Natural Resources Syed
Naveed Qamar inaugurated the
conference.
“Nature has blessed Pakistan
with vast deposits of
hydrocarbon. Proper use of
these resources could play a
vital role in achieving
sustainable economic growth
and prosperity in the country,”
said Qamar in his address.
Discussing the governments
and E&P sector’s drive to
encourage exploration activities
by local and international
players, he highlighted PPL’s
aggressive exploration
programme, Oil and Gas
Development Company
Limited’s efforts to bring the Uch
Field on line on a fast track and
successful discovery of Makori
East in Tal Block operated by
the MOL Pakistan Oil and Gas
BV (MOL). The minister urged
multinational companies to
increase their investment in the
field of oil and gas exploration
and use of new technology.
As such, the conference
provided an ideal opportunity for
a productive brainstorming and
knowledge-sharing forum by
bringing to the table 38
technical papers dealing with
November 2010
current exploration
methodologies, cutting-edge
technology and relevant case
studies. “Selecting the papers
read at the conference was not
easy, given the large number of
abstracts received. Each
abstract and paper was
reviewed by two or more
members of the PAPG Technical
Review Committee. This year,
we have made a conscious
effort to engage expats and
younger industry professionals
in the review process for the
greater purpose of banking on
emerging ideas and skill sets,”
Chairman PAPG Technical
Review Committee Nadeem
Ahmad pointed out. A Student
Paper Contest was also held to
encourage research activities
among 150 students who
participated in the ATC 2010.
Oil and gas professionals from
across Pakistan deliberated over
this year’s theme “Evolving E&P
Strategies for Growing Energy
Needs” and discussed
opportunities and challenges of
meeting escalating global
demand for natural gas.
Participants also reflected on the
developing nature of E&P
profession in today’s technology-
intensive, competitive and high
risk exploration scenario. “The
exploration in ‘frontier’ areas is
generating new ‘hot’
technologies, as does the
exploitation of nonconventional
energy sources such as tight gas
and coalbed methane,” asserted
SMPE Dr. Suhail Qadeer
Chairman Technical Review
Committee SPE Tanweer Aizad.
Rahman, MD MOL Janos
Feher, CEO, Interstate Gas
Company Hilal Raza and
Reservoir Engineer,
Schlumberger Pakistan Limited
Agha Hasan Akram shared their
views during a panel discussion
on the main theme of the
conference, facilitated by
Secretary Petroleum Imtiaz Kazi.
Federal Minister for Science
and Technology Azam Khan
Swati was the chief guest and
GME Moin Raza Khan the
chairperson at the concluding
session of the conference. “I think
it is technology developed during
the past 50 years that has
advanced the petroleum
industry’s worldwide quest for oil
and gas. It is certain that new
technology will be developed and
applied over time, thereby
ensuring that new oil and gas
discoveries will be made more
efficiently and cost-effectively
than ever before,” added Khan in
his concluding remarks.
The conference concluded on
the note that research into
innovative solutions for extraction
and production of more oil and
gas remains a key global priority.
The greatest challenge for
accomplishing the task is to
generate an enabling business
environment, economic flow,
technical capacity and grooming
a skilled human resource to take
the E&P sector forward. n
— Farhat Anis
Relief for
staff
affected
by floods
n addition to Pakistan
I Petroleum Limited’s
(PPL) flood relief and
rehabilitation programme
and financial assistance
provided earlier to flood-
affected permanent non-
MPT staff, the company
recently announced a
similar relief facility for
MPT staff.
The assistance will be in
three parts, comprising
one-time non-refundable
assistance of Rs. 75,000
for loss of life of
immediate family
members and property. In
case the loss is of
property only, non-
refundable assistance
amounting to Rs. 50,000
will be given. The second
facility will be an interest
free loan of Rs. 150,000,
repayable in 48 equal
monthly installments.
Staff will also be permitted
to avail one-week leave
with pay for the purpose
of rehabilitation.
The company has
adopted a transparent
procedure for filing the
losses incurred by MPT
staff. As such, affected
employees are required to
submit an application
along with details and
copies of relevant
supporting documents
through their respective
functional or field location
heads to Human
Resources.
Thorough verification of
claims lodged on account
of loss of property will be
obtained before extension
of relief facilities. n
3
 Seismic imaging
technology
seminar on “3D Seismic of Pakistan while Dr. Rob

A Imaging of Structurally
Complex Areas” was
organized by Pakistan
Association of Petroleum
Geoscientists (PAPG) on
October 28 at the Royal Rodale
Club, Karachi. The event was
attended by Pakistan
Petroleum Limited’s (PPL)
technical staff, geoscientists,
engineers and students and
presided over by GME Moin
Raza Khan as chief guest.
The seminar focused on
interpretive depth imaging in
thrust belt areas as explained
by two visiting experts of
Thrust Belt Imaging (TBI),
Canada, developers of state-
of-the-art technology for
imaging of subsurface geology.
Jon Gittins delivered a
presentation on 3D seismic
imaging of two structurally
complex surveys in the foothills
Vestrum delivered a paper on
geo-science integration and
interpretive depth imaging in
thrust-belt areas.
The task of seismic imaging
is considered complicated by
experts and a number of
parameters are yet to be
discovered to understand the
proper solution for the way
forward. “Seismic data
acquisition and processing
techniques have achieved
many milestones. However,
there is a lot more to be done
with regard to imaging in
structurally complex areas.
From single fold to multifold
acquisition, from 2D to 3D and
even 4D, from simple stacking
to Common Reflection Surface
method stacking, the journey
goes on for better resolution,”
opined Gittins during his
Consultant Thrust Belt Imaging Jon Gittins presentation. n

From the Editorial Desk

Between the lines implications for society at large. As such, an educated individual is
more receptive to differences in colour, creed and cultures and
seeks to learn from them, not dismiss them as the ‘other’.
More importantly, introspection creates the ‘space’ for
he importance of education cannot be overestimated — for individualistic rather than bandwagon thought, leading you away

T livelihood and for life. At the most fundamental level,

education provides requisite exposure, skills and know-how
in various disciplines, opening up job opportunities, with the
from lip-syncing the popular chorus and listening instead to the
rhythms of your own heart and mind. As a result, the mind is not
only the vessel of unargued received wisdom but reason birthed
possibility of intellectual and professional growth on the one hand by none other than you.
and economic well-being on the other, varying, of course, on So as you learn your lessons try and remember this: there is
account of commitment, stake, capacity and merit. text on the lines and between the lines. Be ready to receive both
Given the high rate of unemployment and resultant socio- so you can make a qualitative difference – in your life and that of
political ferment, manifesting itself in the vicious cycle of poverty, others around you. n
civic unrest and susceptibility to radicalization, all of which result
in unrelenting underdevelopment for the country, education can In our entry “AGM elects new board” (Progress, September 2010)
indeed provide the only sustainable exit. Small wonder education there was an inadvertent mistake in reporting PPL Director Sajid
remains the litmus indicator of societal potential for long-term Zahid’s current and past professional engagements. The profile
progress and growth. should read: “Sajid Zahid is currently a Joint Senior Partner of Orr,
This puts in perspective the importance of education and the Dignam and Company and a director of Habib Bank Limited. He
emphasis placed on it by the government, development sector has also served as director, Sui Southern Gas Company Limited,
and, increasingly, corporate organizations such as Pakistan Chairman, First MicroFinance Bank Limited and member,
Petroleum Limited. The common thinking here is: if development Banking Laws Review Commission of Pakistan. The error is
calls for a paradigm shift, as it does in the case of underdeveloped regretted. Ed.
countries, education is key to ushering in that change in the
collective mindset.
Besides the education-economic well-being nexus, though, For Correspondence:
education plays another equally critical role. That is, in enhancing Editor, Progress
the quality of perception and life and opening vistas where none Pakistan Petroleum Limited
existed before. Education gives you the discipline, mental acuity 4th Floor, PIDC House,
and insight to ‘look’ – as opposed to merely ‘see’ – at things for Dr. Ziauddin Ahmed Road,
what they are, which is invariably more than the sum of their parts. P.O. Box 3942,
It teaches you not to view the world in monochrome but in Karachi 75530, Pakistan
technicolour, including the inescapable shades of grey. Email: info@ppl.com.pk
For the doubters, this ability to ‘look’ is not confined to Website: www.ppl.com.pk
heightening awareness about the miracle of creation or isolated UAN: 111-568-568
incidents of aesthetic gratification. Rather, education develops and Fax: 92-21-3568-0005 and 3568-2125
fine tunes the ability to introspect, look within and without and Design and Production:
correct the misinformation, gaps and prejudices that riddle your
Photography: Abdul Hannan
Corporate Communications Department

4
own thoughts and those of others, with arguably negative

November 2010
 DELIVERING at the GRASSROOTS

Commitment to Communities
Enablement through Education
As a developing country, Pakistan faces serious challenges in providing quality education to its
population, especially disadvantaged rural communities.
According to the “Pakistan Social and Living Standards Measurement (PSLM) Survey 2008 – 2009”
quoted in The Economic Survey 2009 – 2010, the overall literacy rate for ages 10 and above is 57 percent.
The data shows literacy is higher in urban centres, at 74 percent than in rural areas at 48 percent and is more
prevalent among men at 69 percent compared to women at 45 percent.
The World Bank reiterates this fact and states that nearly half On the formal education front, PPL’s interventions span
the adult population of Pakistan cannot read, and net primary scholarships in relevant disciplines to local and foreign
enrolment figures remain the lowest in South Asia. Further, institutions, operational funding, construction of physical
public expenditure on education also remains low, being only infrastructure such as classrooms, libraries and computer
2.10 per cent of Gross Domestic Product as stated in The laboratories and provision of furniture, fixtures and
Economic Survey 2008 – 2009. equipment.
But inadequate funding is not the only problem faced by the In addition, the company endeavours to increase resource
education sector, say experts. In fact, a large percentage of the pool of qualified young professionals, particularly in
allocated amount remains unspent. Exacerbating the situation petroleum engineering and geosciences. In this respect, the
are a number of other issues, including shortage of qualified company plans to establish chairs in various universities,
teachers and teacher training opportunities, poor quality of including the NED University of Engineering and Technology,
textbooks and teaching material and weak institutional capacity. Bahria University at Karachi and Mehran University of
Therefore, there is a dire need for the public and private sector Engineering and Technology in Jamshoro. This undertaking
as well as non-profit organizations and civil society to step up will enhance research and facilitate hiring of qualified faculty
and play a proactive role in facilitating access to quality and scholarship grants to deserving students.
education, especially for the rural masses. Further, to ensure To promote learning through informal channels, PPL has
sustainability of development efforts, stakeholders need to established a first-of-its-kind computer training centre and
possess the required capacity and know-how to continue the library at Sui. A library was also developed in Badani Town
work without external intervention in the long term. near Kandhkot Gas Field in 1995 which is managed by a local
This is the thinking on which Pakistan Petroleum Limited’s non-governmental organization. Besides, a similar facility is
(PPL) education programme is pivoted. The company aims to being established in Kalat and Tando Allahyar.
educate youth belonging to communities, especially those To facilitate learning among hearing-impaired children, the
living in and around its operational areas, to enhance learning company also donated state-of-the-art Frequency Modular

5
and livelihood opportunities and well-being. (FM) systems to the Institute for Special Children in Quetta.

November 2010
 D E L I V E R I N G a t t he GR A S S R O O T S

Sui Model School & College

ui Model School and
S College (SMSC) started
off as a primary school in
1957, catering to
educational requirements of
children of PPL staff
stationed at Sui Gas Field
as well as the local
community.
SMSC evolved gradually
over time on a need basis:
classes were initially
extended up to the middle
level or grade 8 in 1961,
subsequent to which the
facility was upgraded to the
secondary level or grade 10.
SMSC was co-educational
until 1990, following which
the timings for girls were
shifted to the afternoon in
an effort to pre-empt
potential dropout due to
local gender segregation
norms. Acting Field Superintendent, Sui Gas Field H.B. Schofield
speaks at the inauguration of Sui Model School
Another milestone for
SMSC was achieved in
September 2009 when the school was community, SMSC has been consistently More importantly, students passing out
upgraded to higher secondary-level to graded among the best schools in the from SMSC have gained admission into
provide intermediate education to girls. Dera Bugti area, currently catering to over reputable higher education institutions in
This was due to the absence of good 2,500 students, about a quarter of which the province as well as other parts of the
colleges in the area coupled with cultural are girls. The school’s faculty comprises country, including Bolan Medical College,
sensitivities that could potentially drive about 40 qualified teachers. In terms of Balochistan University, Engineering
many deserving girls to leave higher physical infrastructure, SMSC has 35 College Khuzdar, NED University of
education all together. During 2009-2010, classrooms, computer and science Engineering and Technology and Fatima
the college enrolled 29 students for both laboratories and a library. PPL finances Jinnah Medical and Dental College.
pre-engineering and pre-medical groups. It the entire operational cost of the school Moreover, PPL also provides scholarships
is expected that the enrolment will rise to besides being responsible for for deserving SMSC students for studies
30 during 2010 – 2011. infrastructure maintenance, procurement beyond matriculation and intermediate
With over five decades of service to the of equipment and books. levels.

Federal Government Public School

perated by the Pakistan
O Army, Federal Government
Public School (FGPS) is
located in Sui. The school has
been operational since 2008 in
a premises provided by PPL.
Later, the company extended
support towards civil
infrastructure, transport,
furniture, equipment,
stationery and salaries of
teaching staff.
FGPS falls under the Federal
Board of Intermediate and
Secondary Education and
caters to over 300 boys from

6
Class 1 up to Matriculate level.

November 2010
 DELIVERING at the GRASSROOTS

Computer The Hub School

Training Centre T he Hub School (THS) is a boarding
school for boys, which aspires to
This percentage is expected to increase
to 50 percent in the future.
& Library provide quality education comparable to
the best available at international
Located on 70 acres of land on the
outskirts of Karachi in Hub, Balochistan,
academic institutions. On completion, the school will have highly qualified local
n order to provide the latest THS is expected to be the first and only and international faculty and purpose-built
I information and communication
technology for residents of Sui and
not-for-profit school of its kind in
Pakistan.
classrooms, dormitories and recreational
and ancillary facilities.
surrounding areas, the first-ever A project of the Ahmed E. H. Jaffer To date, PPL has the distinction of
Computer Training Centre and Library Foundation, THS plans to cater to being not only the first but also the largest
(CTCL) in Sui was inaugurated at the approximately 800 students from Class 6 local donor of THS. The company has
start of 2010. The facility was eventually leading up to an International funded the complete construction of an
constructed by the PPL Welfare Trust in Baccalaureate degree. Initially, THS eponymous block spread over 24,000
2005 with a covered area of 20,000 hopes to provide merit- and need-based square feet, comprising 24 classrooms
square feet and is aptly located in the scholarships to 15 percent of its students. and other ancillary facilities.
heart of Tehsil Bazar in old Sui
surrounded by many educational
institutions.
Kalsoft, an Information Technology
company, operates CTCL and provides
technical resource personnel to manage
the computer centre and conduct
various computer-based and Information
Technology skill-enhancement courses
in collaboration with Microsoft Pakistan.
Besides, the CTCL also houses
books together with daily newspapers
and selected magazines, becoming a
valuable knowledge resource and
facilitating a reading culture in Sui.
PPL has donated land, building,
furniture, books and computers for the
centre and is committed to finance
operational costs.
CTCL has received an overwhelming
response from the local community
since its inception. Approximately 225
candidates were enrolled during the first
month of CTCL’s inauguration, of which
(left to right) Chairman PPL Board Hidayatullah Pirzada and MD and CEO
159 were registered as library users
Khalid Rahman with President, Ahmed E.H. Jaffer Foundation Abdul Kader Jaffer
and 60 for basic computer course. So on a round of the Hub School with the PPL Block in the background
far, 450 students have been registered
as regular visitors to the library.
A three-month basic computer course
was organized for students in three-
Pirzada and Rahman inaugurate PPL Block
batches with 20 participants each. The hairman, Pakistan Petroleum Limited’s (PPL) Board of Directors Hidayatullah
course focussed on training participants
on basic computer skills and
C Pirzada and MD and CEO Khalid Rahman inaugurated the PPL-sponsored
academic block at The Hub School (THS). The inauguration took place at the school’s
troubleshooting together with hands on premises on November 14 and was attended by PPL’s management and staff, members
experience with Microsoft Office. On of THS and Ahmed E. H. Jaffer Foundation (AEHJF) boards, corporate sector and
completion of the course, a test was media representatives.
conducted under the supervision of Pirzada lauded the efforts of the AEHJF to provide quality education to deserving
Microsoft Pakistan and certificates were students. “I am impressed by what THS has to offer in terms of infrastructure and
awarded to participants. First three facilities. Access to quality education remains a pressing need throughout the country,
position holders were provided especially in Balochistan. As an endeavour that seeks to address this gap, THS is
internship at the Kalsoft’s call centre indeed a noble cause.”
which will lead to permanent Speaking on the occasion, Rahman commended the unstinting dedication and
employment upon satisfactory efforts of Abdul Kader Jaffer and THS board that enabled the creation of an academic
performance. centre of excellence in Balochistan. “PPL’s primary motivation is THS’s commitment to
On building necessary local capacity promote the cause of education by extending need-based scholarships to 15 percent
to manage the centre sustainably, of its student body, particularly those belonging to Balochistan. “On this note, I urge
operational responsibility will be handed you to approach other corporate sector organizations for additional funding in order to

7
over to the community after three years. eventually extend scholarships to 50 percent of your student body.”

November 2010
 D E L I V E R I N G a t t he GR A S S R O O T S

Higher Professional Education Scholarship

he Higher Education Scholarship was launched in 2005 to
T allow potential students resident in District Dera Bugti, the
hub of PPL’s operations, to pursue higher studies in reputable
institutions throughout the country, adding to the local human
resource pool and in turn spurring development in the area.
Presently, the scholarship focuses on engineering, medicine,
business administration and information technology. But new
disciplines in line with emergent needs and interests are likely
to be added in the future.
To date, the scholarship has benefitted about 70 students.
Of these, 14 have already completed their studies and 56 are
studying at prestigious institutions recommended by the
Higher Education Commission in Karachi, Lahore and
Islamabad.

Higher Secondary
Education
Scholarship for Girls
he Higher Secondary Education
T Scholarship for Girls is focused on
students completing their matriculation from
local schools in Sui, with a view to providing
them an opportunity to pursue secondary
education in Quetta, Karachi, Hyderabad,
Sukkur, Lahore, Multan and Islamabad.
The scholarship was initiated in 2008 on the
premise that young girls in Sui should not only
gain access to higher secondary institutions
but also get an opportunity to study in diverse
educational settings. Ten scholarships are
awarded each year.
In 2010, two students availed the
scholarship. The number of candidates is
expected to increase as the scheme gains (left to right) MD and CEO Khalid Rahman with scholarship

8
currency over time. winners Gauhar Sikander and Amna Shah

November 2010
 DELIVERING at the GRASSROOTS
Institute for Special Children
echnological advancements over the years have allowed special
T people to overcome their limitations and capitalize on strengths. The
Institute for Special Children (ISC) in Quetta was developed in 1957 on
the same lines to encourage children with auditory impairment to
acquire formal and technical education and improve the quality of their
lives. ISC provides free-of-cost education and technical skill
enhancement for boys and girls. Besides, the centre also encourages
former students to work as teachers.
Initially, standard hearing aids were used at the centre by most
students until PPL committed to provide 100 Frequency Modular (FM)
systems over a five-year period.
FM systems transmit the teacher’s voice directly to the student at a
constant level, regardless of distance, simultaneously reducing grey
noise. As such, the device improves learning and helps children
communicate with others.
PPL has further assisted ISC by donating a 35-seater bus, computers
and providing equipment for setting up a beauty parlour at the institute
to facilitate skills enhancement job opportunities for girls.
November 2010
Foreign Scholarship
Programme
he Foreign Scholarship Programme was formally
T instituted in 1979 with the goal to sponsoring
outstanding students, strictly on merit, through a
transparent selection process to study abroad in the
field of engineering, geology, finance and audit.
However, in line with the company’s business
interests the recent focus has been on geosciences
and petroleum engineering. Through this scheme,
PPL aims to assist the youth of the country in
attaining higher education in well known foreign
institutions excelling in the particular disciplines.
The programme also serves the greater human
resource need of the Exploration and Production
(E&P) sector in the country. During the last decade
alone, 20 individuals have qualified to become PPL
Scholars and are serving the E&P sector in Pakistan.
The company announced the ‘2011 Foreign
Scholarship Programme’ in October that offered
four merit-based scholarships for postgraduate
studies: with two scholarships each in geosciences
and petroleum engineering in well-known
universities in the United Kingdom, United States of
America and Canada.
PPL also encourages its employees to apply for
the scholarship. Subsequent to the completion of
the degree, the candidates are required to serve
PPL for a stipulated period.
National Outreach
Programme
he National Outreach Programme (NOP) was
T launched in 2001 by the Lahore University of
Management Sciences (LUMS) to provide financial
assistance towards a bachelor’s degree for high-
achieving matriculation and intermediate students
across Pakistan.
Students are selected through a strictly merit-
based evaluation process and provided support for
registration and preparation for the LUMS
admission test to compete with other applicants.
Successful candidates are extended a full
scholarship. For this, LUMS has sought support
from various local philanthropic and corporate
organizations as well as international agencies.
PPL signed a Memorandum of Understanding
with the university to create an endowment fund for
the NOP. The fund will be used to finance two
deserving students each year for a period of four
years, bringing the total number of students to
eight. The scholarship will be limited to students
from PPL’s operational areas, with preference to
those hailing from Balochistan.
Only those candidates who meet the criteria for
admission and satisfactory performance for
continued studies as determined by LUMS are
9
supported through the scheme. n
PPL People Successful completion of
Recruitments
I Hamza Yousuf, Assistant
technical job competency pilot
Accountant, Finance
final presentation on the Pilot Project provider with input from relevant PPL employees.
I

I
Muhammad Amer, Technician
(Process), Adhi Field
Catherine Francis, Lady
Secretary, Company Secretarial
I Usman Bashir, Deputy
Accountant, Finance
Achievers
I Abdullah Khan, Technician
(Machinery), Sui Gas Field,
completed his Bachelor of
Engineering (Mechanical) from
University of Engineering and
Technology, Khuzdar
I Qadir Sharif, Store Officer
(Support Services), Materials
and Contracts, completed his
Master of Business
Administration from Preston
Institute of Management,
Science and Technology, Karachi
Retirees
I Mohammad Iftekhar Ali,
Assistant Engineer (Planning),
Compression, retired with effect
from October 21, after 22 years
of service
I Jamshed Mehmood Ghauri,
Engineer, Sui Gas Field, retired
with effect from November 11,
after 8 years of service
I Abdul Karim Bugti, Senior
Headman, Sui Development,
retired with effect from October
01, after 34 years of service
I Abdul Rahman Bugti, Havaldar,
Sui Purification Plant, retired with
effect from October 09, after 38
years of service
I Jalumb Bugti, Helper, Sui
Development, retired with effect
from October 16, after 28 years
of service
I
A “Development of Technical Job Competency
Models” was conducted by Director and Lead
Consultant PetroSkills Middle East Ken Delve on
October 29 at the Pakistan Petroleum Limited’s
(PPL) head office. The session was chaired by MD
Lead consultant and Director PetroSkills Middle East Ken Delve delivers a
presentation at PPL’s head office and applicability, the
and CEO Khalid Rahman along with DMD Asim
Murtaza Khan.
The Training and Development Department
initiated the project earlier this year in May to
develop technical job competency models for
identified positions in Exploration, Drilling
Operations, Production Engineering and Reservoir
Engineering. The scope of the pilot was limited to
assessing the competency of selected technical staff
in line with international benchmarks and identifying
skill gaps and development needs.
The project was divided into three phases. The first
phase entailed a review and evaluation of job
descriptions, customization of the service provider’s
standard competency statements, preparation of
customized job competency models for each
position using PetroSkills Competency Maps and
structured workshops facilitated by the service
In the second phase, access to the service
provider’s proprietary software was gained to enable
PPL staff working at specified positions to assess
their individual competencies, followed by supervisor
assessments and evaluation of PPL self and
supervisors’
assessments by
subject matter experts
from PetroSkills.
The third phase
focused on the
development of
individual plans and
submission of a final
report, summarizing
project implementation
and results, following
which the whole
process underwent
review.
Based on relevance
assessment was
carried out by dividing concerned staff in
Exploration, Drilling Operations, Production
Engineering and Reservoir Engineering for identified
positions. These were also the identified groups on
which the pilot project was focused and designed
and technical job competency models developed
accordingly.
Successful completion of the pilot was possible
due to the support of respective department heads,
the 37 selected staff at 16 identified target positions
and their supervisors. All participants eagerly gave
their opinions on the subject.
Following the final presentation, a summary report
has been submitted by the consultant, which is
under review for preparation of recommendations to
be forwarded to management for final review and
approval before determining and mapping out the
course of action. n

Permit to work system rolled out at field locations

Pandhi Bugti, ATM, Sui Gas
Field, retired with effect from
October 16, after 21 years of
service
I here is always a need to ensure effective implementation. availability of adequate

Fazal Ali, Record Attendant,
Production Engineering, retired
with effect from October 23, after
30 years of service
I Muhammad Usman Bugti,
Head A/C Mechanic, Sui
Purification, retired with effect
from November 01, after 36
T
have systems and
procedures in place to
enable worker and infrastructure
safety. Understanding its
importance and critical nature the
Permit to Work (PTW) System at
Pakistan Petroleum Limited
DE (HSE) Abid Hussain
facilitated the sessions which
were attended by around 100
participants.
PTW system is a core HSE
Management System,
incorporating work planning,
safeguards.
The new PTW procedure is
reinforced by incorporating
comprehensive rules, clarity on
individual roles, improved
checklist of permit document,
specific identification of various

Births
years of service
I A baby girl, Khadija Batool, was
born to S. Intesar Abbas Rizvi,
Senior Engineer (Construction),
Sui Gas Field, on August 13
I A baby girl, Salma, was born to
Mohammad Ali Bugti, Helper, Sui
(PPL) was significantly enhanced
and upgraded in September
2010 to be implemented at field
locations.
Health Safety and Environment
(HSE) Department conducted
seven roll-out training sessions
on PTW at Sui, Kandhkot and
control and checks at the
workplace prior to job execution
at processing plants and other
critical operational areas. The
system outlines a framework for
controlling potential hazards
during operational activities
through systematic risk
types of permit and display
mechanism in line with industry
best practice.
The training module covered
work permit applicability, proper
work planning and authorization,
role of various stakeholders, pre-
job safety checks and

10
Chachar and Adhi fields in identification, assessment, communication requirements
Development, on October 23
October to create awareness and prioritization and ensuring under the new PTW procedure. n

November 2010

The Annual General Meeting of Petroleum Institute of Pakistan (PIP) was held
on October 28 to review activities and financial results for the last fiscal year.
(left to right) Chairman Zaiviji Ismail, directors Khalid Rahman, Paolo Giraudi,
Mohammad Zubair and CEO PIP Saleem Piracha
Senior International Business Development Manager, Institute of Chartered
Accountants of England and Wales (ICAEW) Justin West visited PPL’s head
office on October 19 to congratulate DCA M. Saqib Jalil and SA M. Naufil
Gazdar for being the first two Pakistani candidates to achieve ICAEW
qualification since its introduction in the country in 2007.
(left to right) Jalil, GMF and CFO Kamran Wahab Khan, Gazdar, MD and CEO
Khalid Rahman and West
Engineer (Shift), Purification Plant, Sui Jamshed Mehmood Ghauri receives a
superannuation shield from MSui Muhammad Zakir on October 30. Ghauri
retired on November 11 after serving the company for eight years
November 2010
ENERGY BRIEFS
Oil demand, price set to rise: IEA
il demand and price are set to grow steadily over the next 25
O years despite environmental policies, essentially dooming
climate-change goals, the International Energy Agency (IEA) forecast
on November 9.
Slightly more than a third of the new demand would come from
China’s appetite for energy. The IEA warned that “the oil price needed
to balance oil markets is set to rise,” adding it expected the price of
crude oil to increase by 88 percent to USD 113 a barrel in 2035.
Even under climate change pledges made under the Copenhagen
Accord last year, fossil fuels will still account for more than half the
increase in total energy demand, with oil to remain the dominant fuel,
the IEA said in World Energy Outlook.
The broad failure of the Copenhagen summit on the climate would
cost the world USD 1,000 billion in extra investments needed by 2030
to avoid irreparable damage to the climate, raising the total investment
needed to USD 11,600 billion, the IEA estimated.
In particular, the IEA noted that increasing demand would force oil
companies to unconventional sources, such as oil sands and shale,
which are not only costly and will drive up prices but which also
generally emit more greenhouse gases. — AFP
Venezuela to invest USD 780
million in Iran gas field
enezuela’s state oil giant Petroleos de Venezuela SA plans to
V invest USD 780 million in a project in Iran’s South Pars Gas Field,
an Iranian official said on October 24.
“During the Venezuelan delegation’s recent trip, an agreement was
signed for Venezuela to invest USD 780 million to develop South Pars
Phase 12,” project chief Hamid Akbari was quoted as saying by the oil
ministry’s Shana News Agency. Akbari said the agreement would be
operational in three months.
Last week, Venezuelan President Hugo Chavez visited Iran in which
his delegation signed 11 deals on energy cooperation between Iran
and Venezuela, two of the world’s major oil producers. The two
countries also signed pacts for a joint oil shipping company and joint
construction of petrochemical plants.
The South Pars Field, which Iran shares with the Gulf State of
Qatar, is comprised of 28 phases and holds about 14 trillion cubic
metres or 500 trillion cubic feet of gas. — AFP
Oil gains nearly three percent
il rebounded nearly three percent on October 21, the biggest daily
O percentage gain in more than a month, as a weaker dollar,
stronger equities and a smaller-than-expected rise in US crude
stockpiles whetted investors’ risk appetite.
The gains came a day after oil futures posted their steepest decline
in more than eight months as China boosted interest rates. Investors
reassessed the rate hike and deemed China’s demand for oil would
remain strong.
US crude for November delivery expired at the close and settled at
USD 81.77 a barrel, gaining USD 2.28 or 2.87 percent, the biggest
percentage gain for a day since September 10, when prices ended up
2.96 percent. The December contract ended at USD 82.54, rising USD
2.38 or 2.97 percent. — AFP
Russia, Poland agree on gas
supply deal
ussia and Poland agreed on a new gas supply deal on October 18,
R conforming to European Union (EU) rules, easing worries that
Europe, which takes gas through the Polish pipeline, may face
shortages during the coming winter.
An agreement on increasing Russian gas delivery to Poland and its
transit to Germany through the Yamal pipeline was negotiated last year
but was not signed due to worries it was incompatible with EU laws.
The delay in signing the deal raised fears of supply disruptions similar
to those experienced in 2009, when Russia left European consumers
shivering during a price row with Ukraine. Russian gas export monopoly
Gazprom and Poland’s gas monopoly Polish Oil and Gas Company will
now work on details with Gazprom’s Deputy CEO Alexander Medvedev,
11
saying the contract would be finalized within two weeks. — Reuters
PPL and PGNiG scope out further PRODUCTION

business opportunities
PPL-operated Fields

October, 2010

A
high-profile, four-member
delegation of the state-
owned Polish Oil and Gas
Company (PGNiG) comprising
Vice President, Management
President, Management Board,
PGNiG Michal Szubski.
Besides Rahman and Khan,
DMD Asim Murtaza Khan, SMBD
Abdul Wahid and SME Hayat
The joint venture is planning to re-
enter, side track and fracture
another well, Halel-1, located on
the same structure as Rehman-1 Sui Gas Field Balochistan
to exploit the reserves further. Raw Gas (Million Cubic Feet)

Board Marek Andrzej Karabuła, Ahmed participated in the Thereafter, production through Average/Day 544
Director Exploration and discussions with PGNiG, Extended Well Test is expected to Maximum/Day 558
commence next year.
PPL and PGNiG also
reviewed E&P
opportunities in Gambat
South Block and agreed to
continue to discuss
strategies for exploration Adhi Field Punjab
and development through (Barrels)
adoption of latest NGL Average/Day 2,177
technology, exchanging Crude Average/Day 3,199
technical information and (Tonnes)
training human resource in LPG Average/Day 140
relevant areas. (Million Cubic Feet)
As a frontline player in GAS Average/Day 42
the Exploration and
(left to right) SMBD Abdul Wahid, SME Hayat Ahmad, GME Moin Raza Khan, SGM Fasih-uz-Zaman, Production sector with
DMD Asim Murtaza Khan, MD and CEO Khalid Rahman with PGNiG’s Vice President, Management
Board Marek Andrzej Karabuła, Director of Exploration and Production Department Piotr Władysław proven core business
Gliniak, Director of Exploration Bureau Andrzej Zygmunt Maksym and Director Pakistan Jacek Oleksy competencies, operational
outreach and financial
Production Piotr Władysław exchanging views on furthering strength, PPL has drawn keen
Kandhkot Gas Field Sindh
Gliniak, Director, Exploration business relations between the two interest from international
Bureau Andrzej Zygmunt Maksym companies and potential joint companies seeking to establish or Raw Gas (Million Cubic Feet)

and Director PGNiG Pakistan
Jacek Oleksy, visited Pakistan on
Pakistan Petroleum Limited’s
(PPL) invitation between
November 11 and 13 to discuss
mutual business opportunities.
The visit by PGNiG’s delegation
follows MD and CEO Khalid
Rahman and GME Moin Raza
Khan’s trip to Warsaw, Poland
venture opportunities.
PPL is already partnering with
PGNiG with a 30-percent working
interest in Kirthar Block where
Pakistan’s first-ever tight gas
discovery has been made at
Rehman-1. Various strategies to
commercialize the discovery were
also discussed in the wake of the
upcoming tight gas policy and
enhance their presence in the Average/Day 165
sector through joint ventures both Maximum/Day 181
in Pakistan and abroad.
PGNiG is Poland’s largest
petroleum company involved in oil
and gas field development, energy
production, storage and
transportation, oil and gas
transmission network construction Mazarani Gas Field Sindh
and expansion, as well as natural Raw Gas (Million Cubic Feet)

earlier in May on the invitation of applicable gas pricing structure. gas exports and imports. n Average/Day 10
Maximum/Day 12

Chachar Gas Field Sindh

Raw Gas (Million Cubic Feet)

Average/Day 7
Maximum/Day 7
Printed by Appletree Graphics

The 9th Community Development Board (CDB) meeting of the Planning and Development Department (P&DD),
Government of Sindh (GoS) was held at the PPL head office on October 28. The members reviewed and
discussed progress of various projects. (clockwise) Deputy Chief Executive, Business Recorder Arshad Zuberi, Hala Field Sindh
Special Secretary Finance Najam-ul-Saqib Siddiqui, MD and CEO Khalid Rahman, Project Director, Lyari
(Barrels)
Expressway Rehabilitation Plan and Bhit Shah Beautification Plan Shafiqur Rahman Paracha, CEO, South City
NGL Average/Day 1,121
Hospital, Karachi Dr. Sadia Rizvi Virk, Chairman CDB, Community Development Programme (CDP), P&DD, GoS
Shamsh Kassim Lakha, CEO, APWA Legal Aid Call Center Justice (R) Nasir Aslam Zahid, Secretary P&DD, GoS (Tonnes)
Naheed S. Durrani, Programme Coordinator, CDP and Additional Secretary Planning, P&DD Aijaz Ahmed LPG Average/Day 36

12
Mahesar, Programme Manager, CDP Muhammad Iqbal Lakho and programme officers for CDP Ghulam Shabir (Million Cubic Feet)
Jiskani and MIS Shahid Hussain Abro attended the meeting GAS Average/Day 13

November 2010