Part3-Chp%208 Assignment for load shedding

Pakistani domestic oil production centers on the

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Unformatted text preview: n capacity. Pakistani domestic oil production centers on the Potwar Plateau in Punjab and lower Sindh province. 122 State-owned Oil and Gas Development Corporation Limited (OGDCL) is a leading firm in the industry, producing around 22,334 bbl/d according to company information. A 5% stake was sold in a public offering in November 2003 for approximately $119 million. OGDCL is Pakistan's second-largest oil producer after UKbased BP. The government will also offer a stake of up to 15% of Pakistan Petroleum Limited (PPL), the largest exploration and production firm in Pakistan. Currently the government controls 93% of the company, which owns the Sui fields in Balochistan, as well as exploration interests in 22 blocks. The government also has a 35% stake in Pakistan Oilfields Limited (POL). Oil sector reforms in Pakistan are generally on track, but the privatization of several firms, including Pakistan State Oil (PSO), continues to be postponed. The government's divestiture of its 51% stake in PSO to a strategic partner has been planned for several years. PSO holds a 60% domestic market share in diesel fuel and has more than 3,750 retail outlets. Deregulation of prices for petroleum products is being pursued in parallel with the privatization of PSO. As part of the country's privatization process, Pakistan is setting up a Gas Regulatory Authority (GRA) and the Petroleum Regulatory Board (PRB), which will separate out government functions from state-owned companies to be privatized. Pakistan's government hopes to reap significant revenues from these privatizations over the next several years. The two most significant foreign oil firms in Pakistan are BP and Eni. BP operates 43 fields in Pakistan and had reported average production of 25,877 bbl/d in 2003. Other firms include BHP Billiton (Australia) OMV (Austria), Petronas (Malaysia) and Premier Oil (UK). Pakistan's net oil imports are projected to rise substantially in coming years as demand growth outpaces increases in production. Demand for refined petroleum products also greatly exceeds domestic oil refining capacity, so nearly half of Pakistani imports are refined products. Pakistan's Pak-Arab Refinery (PARCO) became operational in late 2000, adding to the country's refining capacity, and alleviating refined product import dependence. The PARCO Mid Country Refinery at Mahmood Kot was formally commissioned in 2001 and has capacity of 100,000 bbl/d of throughput (mostly crude oil from Abu Dhabi and and Light Arabian Crude from Saudi Arabia), supplied to the plant by pipeline from Karachi. A small, 30,000 bbl/d refinery operated by private Bosicor Pakistan Limited (BPL) near Karachi began commercial operation in November 2003. The plant is supplied with shipments of crude oil from Qatar. The Bosicor plant will allow Pakistan to become a new supplier of naptha to Far Eastern markets. Naptha makes up approximately 9% of the plant's output. The plant produces about 10,800 bbl/d of fuel oil, 6,980 bbl/d of diesel, and 4,350 bbl/d of kerosene, among other...
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This note was uploaded on 10/02/2010 for the course MBA 32343 taught by Professor Samghouri during the Spring '10 term at Karachi Institute of Economics & Technology.

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