Oil, Gas and Refinery Sectors - updates

[ghazi52]

During the past decade, Pakistan’s onshore E&P sector has also suffered setbacks as several international companies — including Kuwait Foreign Petroleum Exploration Company (KUFPEC), Eni, Shell, TotalEnergies, and Baker Hughes — either exited the market or significantly scaled down their operations.

Persistent economic instability, currency depreciation, high taxation, regulatory bottlenecks, and the growing circular debt in the gas sector have discouraged investment and led to a sharp decline in drilling activity and discoveries.

Given these challenges, the renewed confidence shown by domestic and foreign investors in Pakistan’s offshore sector is a welcome development. Successful discoveries could attract long-term foreign investment, strengthen the E&P industry, and move Pakistan toward energy self-reliance by reducing its dependence on costly imports.

With the right investment climate, policy stability, and technological collaboration, the Indus Basin could eventually meet domestic energy needs and potentially emerge as a regional energy hub.

 

[hydrabadi_arab]

Pakistan seeks diversion of 29 RLNG cargoes from Qatar as domestic gas demand drops - Profit by Pakistan Today​

Monitoring Desk13 Nov 2025
Pakistan has formally asked Qatar to divert 29 RLNG cargoes scheduled for 2026, increasing its earlier request for 24 shipments amid a continued fall in domestic gas demand, The News reported, citing senior Petroleum Division officials.

If approved, the diversion could save Pakistan about $339.6 million in foreign exchange, based on the long-term contract price of $28.3 million per cargo. Officials said Qatar is expected to respond to the revised proposal on November 15, 2025.

However, under the Net Proceeds Differential (NPD) clause of the LNG supply agreement, Qatar retains any profit from selling the diverted cargoes at rates higher than Pakistan’s contracted price.

Pakistan, meanwhile, must bear any losses from resale below the contract level — potentially up to $10 million per cargo, including operational costs.

Officials said the request aligns with updated demand forecasts and ongoing efforts to manage LNG procurement obligations amid subdued consumption trends.

Earlier, it was reported that Pakistan State Oil (PSO) had informed the federal government of Qatar Energy’s willingness to adjust the net proceeds differential for 24 LNG cargoes scheduled for 2026. The move follows challenges in the gas sector, particularly due to low offtake by power producers, which has led to “demand destruction” and resulted in a surplus of LNG.

Under a net proceeds differential mechanism, the cargoes will be diverted to the open market, and Pakistan will bear the financial loss if Qatar sells the LNG cargoes at a price below the agreed contract price. The price differential will be passed on to LNG consumers, with policy guidelines to be issued by the federal government to the Oil and Gas Regulatory Authority (Ogra) to implement this.

Monitoring Desk

Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

 

[ghazi52]

Second US crude oil cargo arrives​

Private sector-led initiative strengthens energy infrastructure, signals renewed investment under SIFC reforms

Our Correspondent
November 13, 2025

ISLAMABAD: The second US crude cargo has landed in Pakistan, opening a new area of cooperation between Pakistan and the United States (US).

Pakistan has traditionally imported oil from the Middle East, with Saudi Arabia being the largest crude oil exporter to the country. The arrival of the second US crude oil cargo at Cnergyico's Single Point Mooring (SPM) marks another milestone in Pakistan's energy and industrial journey.

Commissioned in 2012 with an investment of $120 million, the SPM was an ambitious project that initially faced scepticism from many industry observers, particularly within the public sector. Since its commissioning, over 150 million barrels of crude oil have been imported through Cnergyico's SPM. It remains Pakistan's only facility capable of receiving large vessels such as Suezmax and VLCC tankers.

The second ship carrying US crude oil was berthed at the SPM on Wednesday.

 

[ghazi52]

 

[ghazi52]

Vitol, Cnergyico make Pakistan’s biggest single delivery of marine fuel​

Reuters
November 18, 2025
https://whatsapp.com/channel/0029VaMc238IiRov8okfYy3n
Vitol and Cnergyico, Pakistan’s largest oil refiner, have delivered the country’s biggest single shipment of very low sulphur fuel oil (VLSFO) for ship refuelling, the global trading firm said in a statement late Monday.

The move will enable large vessels refuelling in Pakistan to now sail longer routes from east to west without needing to stop elsewhere, while also giving the country a stronger local supply of environmentally compliant marine fuel.

This shipment came from Cnergyico’s first large-scale batch of fuel that meets International Maritime Organisation (IMO) low-sulphur rules. The company began producing it after importing its first US crude oil cargoes earlier this year.

Vitol delivered the VLSFO to a vessel owned and operated by shipping major MSC at Port Qasim, using a Singapore-flagged bunker barge Marine Ista that has the capacity to supply 6,800 metric tons of marine fuel in a single delivery.

It was also the first barge to load fuel directly from the Karachi Port Trust’s Oil Pier rather than through truck deliveries.

Cnergyico will continue providing Vitol with this cleaner marine fuel, according to Vitol.

 

[ghazi52]

Pakistan clears Turkish Petroleum Overseas Company-led consortium to operate offshore block​

TPOC will hold 25% and will operate the block once a formal agreement is signed

Reuters
November 18, 2025

KARACHI: Pakistan approved a new offshore exploration consortium on Tuesday, clearing Turkish Petroleum Overseas Company to take over operatorship of the Eastern Offshore Block-C as part of a push to revive drilling, the adviser to the finance ministry said.

Pakistan’s Economic Coordination Committee approved Pakistan Petroleum Limited’s request to assign part of its interest in the block to TPOC, Mari Energies and state-run Oil & Gas Development Co Ltd leaving PPL with a 35% stake.

TPOC will hold 25% and will operate the block once a formal agreement is signed.

“This will bring valuable international offshore operating experience to Pakistan’s exploration landscape and this transition is expected to enhance technical capabilities, operational efficiency, and overall project delivery,” Khurram Schehzad, the adviser to the finance ministry said on X.

He said the block contains a drill-ready prospect that the consortium will now pursue, a step he added could attract fresh foreign investment.

With the ECC’s approval, the consortium is now set to advance preparations for drilling operations, he said.

In October, bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres, in Pakistan’s first offshore bidding round since 2007.

Pakistan’s 300,000 square kilometre offshore zone, bordering energy-rich Oman, the United Arab Emirates and Iran, has seen just 18 wells drilled since independence in 1947, too few to fully assess its hydrocarbon potential.

 

[hydrabadi_arab]

Pakistan to Build an Artificial Island to Boost Oil Exploration PPL is reclaiming land from the sea to create a launchpad to ramp up oil and gas exploration. The artificial island will come up 300km off the coast of the southern Sindh province: Bloomberg

https://www.bloomberg.com/news/articles/2025-11-19/pakistan-to-build-an-artificial-island-to-boost-oil-exploration?utm_source=website&utm_medium=share&utm_campaign=twitter

 

[hydrabadi_arab]

Pakistan Petroleum Ltd. (PPL), the state-owned energy company, is constructing an artificial island off the coast of Sindh to accelerate offshore oil and gas exploration, a senior company official told Bloomberg.

The island, located about 30 kilometers (19 miles) from Sujawal, will serve as a launchpad for drilling operations, according to Arshad Palekar, PPL’s General Manager for Exploration and Core Business Development.

Speaking at an oil and gas conference in Islamabad, Palekar said the six-foot-high platform is designed to withstand high tides and enable uninterrupted, round-the-clock exploration.

Pakistan’s offshore drilling push has picked up pace after U.S. President Donald Trump highlighted the country’s “massive oil reserves” in a social media post in July. Since then, the government has awarded new offshore exploration licenses to PPL, Mari Energies Ltd., and Prime International Oil and Gas Co.

The project marks a first for Pakistan and draws on Abu Dhabi’s experience with artificial islands for drilling, Palekar said. Construction is expected to finish in February, with drilling operations to begin immediately afterward. PPL plans to drill about 25 wells from the new platform.

 

[hydrabadi_arab]

Pakistan to build island to boost oil exploration: report​

https://whatsapp.com/channel/0029VaMc238IiRov8okfYy3n
State-owned energy company Pakistan Petroleum Ltd (PPL) is reclaiming land from the sea to create a launchpad to ramp up oil and gas exploration, US outlet Bloomberg reported on Wednesday.

Citing PPL’s General Manager Exploration and Core Business Development, Arshad Palekar, Bloomberg reported that the artificial island will be created about 30 kilometres off the coast of Sindh, near Sujawal. He said this on the sidelines of an oil and gas conference in Islamabad.

“Planned with a height of six feet, the platform will prevent high tides from interrupting round-the-clock exploration work,” he said.


Pakistan’s drilling efforts are gaining fresh momentum after United States President Donald Trump indicated an interest in the country’s “massive oil reserves” in a social media post in July.

Since then, Islamabad has awarded offshore exploration licenses to local companies PPL, Mari Energies Ltd and Prime International Oil and Gas Company.

“The project, a first for Pakistan, builds on Abu Dhabi’s experience, where artificial islands for drilling have been successfully built,” Palekar said.

Construction of the island will be completed in February, and operation will start immediately after, according to Palekar. The company aims to drill around 25 wells.

Vitol and Cnergyico, Pakistan’s largest oil refiner, delivered the country’s biggest single shipment of very low sulphur fuel oil (VLSFO) for ship refuelling, the global trading firm said in a statement late Monday.

This shipment came from Cnergyico’s first large-scale batch of fuel that meets International Maritime Organisation (IMO) low-sulphur rules. The company began producing it after importing its first US crude oil cargoes earlier this year.

The move will enable large vessels refuelling in Pakistan to now sail longer routes from east to west without needing to stop elsewhere, while also giving the country a stronger local supply of environmentally compliant marine fuel.

 

[Pakistan Space Agency]

This is interesting.

Pakistan’s PPL to create artificial island to ramp up oil & gas exploration: report

Pakistan Petroleum Limited (PPL), one of the country’s leading energy companies, is reclaiming land from the sea to...

www.brecorder.com

 

[ghazi52]

Pakistan’s first large scale production & delivery of IMO complaint VLSFO​

Milestone achieved with Vitol’s Singapore flag bunker barge, Marine Ista with Dead Weight Tonnage (DWT) of 8,722MT

BR Web Desk
November 20, 2025

Pakistan has successfully executed the first large scale production and delivery of IMO compliant Very Low Sulphur Fuel Oil (VLSFO) from Karachi Port Trust Oil Pier, a statement said.

The milestone was achieved with Vitol’s Singapore flag bunker barge, Marine Ista with Dead Weight Tonnage (DWT) of 8,722MT.

This marks a major step forward for Pakistan’s energy and maritime sectors enabling the domestic production and supply of environmentally compliant marine fuels.

The development was made possible through collaboration of Prime Minister’s Maritime Task Force and other key stakeholders from the Government of Pakistan.

Providing IMO complaint very low sulphur fuel oil to the vessels owned and operated by largest shipping companies in the world will essentially work as catalyst to develop international standard blue economy in Pakistan.

 

[ghazi52]

PPL rejects reports of offshore ‘artificial island’​

BR Web Desk
November 20, 2025

Pakistan Petroleum Limited (PPL), one of Pakistan’s largest energy and exploration companies, has rejected recent media reports claiming that the E&P is “reclaiming land from the sea to build an artificial island”, terming the media coverage “misleading” which does not fully reflect the technical scope and design of the project.

The clarification comes after it was reported that PPL is reclaiming land from the sea to create a launch pad, which will allow the company to accelerate oil and gas exploration.

As per the report, the artificial island will be located 300km (190 miles) off the coast of Sindh.

However, PPL on Thursday clarified that the “activities underway relate to enabling safe drilling operations in a challenging marshy environment, rather than the development of a standalone offshore island”.

“This is a technically complex and unique initiative, and is among the first projects in Pakistan to undertake drilling in such a marshy, tide-affected area,” said the company.

The listed company shared that the project is located in the southern marshy region of the Sirani Block, near district Sujawal, Sindh, which has previously remained unexplored due to significant operational and accessibility constraints.

“PPL has already successfully acquired 2D and 3D seismic data in this area using specialised transition-zone equipment,” read the notice, adding that construction activities are currently in progress.

The company shared that due to marshy subsoil conditions and tidal influence, both the access road and the well pad are being raised by approximately nine feet to ensure operational continuity and mitigate the effects of low and high tides.

“The well location is approximately 30 km from the mainland. A natural water channel of approximately 17 km between the loading and offloading jetties will be used to transport equipment and materials via barges.

“The well is planned to be spud in March 2026,” the company said.

 

[hydrabadi_arab]

Pakistan Petroleum Limited to drill first offshore oil well in March 2026​

Monitoring Desk22/11/2025

Pakistan will drill its first offshore oil well in March 2026 along Sindh’s southern shoreline, in the Sirani Block near Sujawal about 30 kilometres from the mainland, Arab News reported, citing a senior Pakistan Petroleum Limited (PPL) official as saying.

According to the report, PPL plans to begin drilling in March, with reservoir evaluation to follow. A discovery, if made, is expected roughly three months after drilling starts. Depending on the results, the company may drill up to 25 wells in the area. The official said expectations for oil are strong but did not disclose anticipated volumes.

The project comes as Pakistan looks to cut its reliance on imported oil, which makes up over 60% of national consumption. It marks the country’s first move into offshore exploration after decades of onshore drilling. A successful find would add domestic supply and ease Pakistan’s exposure to global fuel price volatility.

PPL has recently expanded its exploration footprint by securing eight new blocks, Gharo Creek, Kochi Creek, Bin Qasim South, Keti Bandar, Behr, Zarrar, Sapat Bandar and Offshore Deep D, in southern Pakistan. The company currently supplies around 20% of the country’s natural gas alongside crude oil, NGLs and LPG.

The official noted that the Sirani Block’s prospectivity is linked to Block C, located about 70 kilometres away and operated by Turkish Petroleum Corporation (TPAO), which holds a 25% working interest there. A discovery at Sirani could improve prospects for the adjoining block.

The Sirani site poses technical challenges due to marshy terrain and tidal activity, which have long delayed exploration. In a filing to the Pakistan Stock Exchange on Thursday, PPL said construction is underway to support drilling operations, including jetties, logistics channels and an access road. Drilling equipment will be transported via a 17-kilometre natural channel.

Both the access road and well pad are being raised by approximately nine feet to withstand shifting tides. The elevated site will accommodate up to 250 personnel during drilling.

 

[ghazi52]

Progress on major JVs with Russia likely​

Delegation from Moscow due next week to explore cooperation in energy, mining, pharma sectors

ZAFAR BHUTTA
November 23, 2025

ISLAMABAD: Pakistan and Russia are poised to make headway on multibillion-dollar projects for offshore drilling, mineral mining, insulin production and Pakistan Steel Mills (PSM) revival during the upcoming dialogue.

The Pakistan-Russia Inter-Governmental Commission is scheduled to meet on November 27 in Islamabad.

Sources told The Express Tribune that a high-level delegation of Russia was set to arrive on November 25. It will hold meetings with the Pakistani side on November 26-27.

Key projects on the agenda include stakes in offshore hydrocarbon zones for Russian energy giant Gazprom.

Pakistan's government has recently awarded 23 offshore exploration licences to domestic companies including Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL) and Mari Energies. A Turkish firm has also entered into a joint venture with Pakistani firms to try their luck in offshore drilling.

During the previous government of Pakistan Tehreek-e-Insaf (PTI), US energy major ExxonMobil searched for oil and gas in an offshore area in Karachi. But its bid failed and it did not yield any result. However, it helped to collect data, which would be of great support in the upcoming offshore drilling ventures.

 

[ghazi52]

State-owned OGDC is at an advanced stage of forging a joint venture with Gazprom for offshore oil and gas exploration in Pakistan. Gazprom has also offered OGDC stakes in its projects in different countries.

Sources said that during the upcoming sessions of the Inter-Governmental Commission, Pakistan and Russia were set to make some headway on beginning joint projects for oil and gas excavation in offshore zones.

The Pakistani side is also exploring prospects of joint exploration of mineral resources. It has offered Russia to join efforts in this regard. The two sides will take up the potential for cooperation in this area during the upcoming discussions. US firms have also shown interest in participating in mineral exploration in Pakistan.