Oil, Gas and Refinery Sectors - updates

[Hussain]

Pakistan Petroleum’s headquarters relocation to Islamabad faces PPP opposition; govt denies political motives​

Petroleum minister says PPL’s operational assets and field offices will remain in Karachi, while relocating headquarters to Islamabad will improve coordination with government departments

The proposed relocation of Pakistan Petroleum Limited's (PPL) headquarters from Karachi to Islamabad has drawn opposition from Pakistan Peoples Party (PPP) lawmakers, who questioned the financial justification for the move and cited an estimated cost of Rs4 billion.

During a National Assembly session on Tuesday, Petroleum Minister Ali Pervaiz Malik defended the proposal, saying it had been approved by PPL's management and three previous boards of directors to reduce expenditure and improve administrative efficiency.

Responding to a calling-attention notice moved by PPP MNA Naveed Qamar, the minister said PPL's operational assets and field offices would remain in Karachi, while shifting the headquarters would facilitate coordination with government departments in Islamabad.


He maintained that the decision was part of broader reforms at PPL and was not politically motivated.

Parliamentary Secretary for Petroleum Mian Khan Bugti said the company spent approximately Rs120 million annually on officers' travel, presenting the expenditure as one of the reasons for the proposed restructuring.

However, Qamar questioned the need to relocate the entire headquarters, arguing that the government's explanation was inadequate.

PPP MNA Nafisa Shah recalled that the petroleum minister had stated in 2025 that PPL would not be relocated from Karachi.


She criticised the proposed centralisation of operations and claimed that shifting the headquarters would cost approximately Rs4 billion. She also raised concerns about PPL's performance, citing losses of Rs3,600 billion in the gas sector.

Pakistan Petroleum Limited (PPL) is a state-owned oil and gas exploration and production company headquartered in Karachi. One of Pakistan’s largest companies in the sector, PPL accounts for more than 20% of the country’s total natural gas supplies.

Established in 1950, the company is primarily engaged in the exploration, prospecting, development and production of hydrocarbons and mineral resources.

Earlier, National Assembly Speaker Ayaz Sadiq expressed displeasure over the absence of the petroleum minister and senior Petroleum Division officials when the matter was taken up.


Malik subsequently arrived and apologised, explaining that a meeting at the Prime Minister's Office had delayed his attendance.

PPP living in donkeys paradise, no surprises.

 

[hydrabadi_arab]

Qatar offers revised LNG prices as Pakistan weighs deal for 66 annual cargoes: report​

QatarEnergy proposes 11.96% of Brent for both supply contracts as Pakistan negotiates lower prices and fewer cargo deliveries

QatarEnergy has offered Pakistan a revised liquefied natural gas (LNG) price of 11.96% of Brent crude for two long-term supply agreements, with Pakistan State Oil (PSO) seeking government approval to finalise the arrangement by November 3, The Express Tribune reported, citing sources.

The latest offer follows several rounds of negotiations over LNG pricing and supply volumes under two government-to-government agreements signed in 2016 and 2021, both of which expire in 2031.

Pakistan initially sought a reduction in the first contract's price from 13.37% to 10.20% of Brent. QatarEnergy declined the proposed rate but offered 11.36% for both contracts before presenting its final proposal of 11.96%.

For the second contract, Pakistan wanted to retain the existing rate of 10.20% of Brent, while QatarEnergy initially sought an increase to 11.98%.

Sources said QatarEnergy's latest pricing offer is final and Pakistan must now decide whether to accept it.

The proposed arrangement covers 66 LNG cargoes annually from 2027 to 2031, compared with 108 cargoes under the existing agreements. Another 210 cargoes have been deferred over four years beyond 2031.

The negotiations follow declining LNG demand from the power sector, which has resulted in surplus gas supplies in the domestic transmission system.

In 2023, the government authorised PSO to negotiate a reduction of two cargoes per month. Consequently, 24 cargoes were removed from the 2026 delivery schedule under a Net Proceeds Differential arrangement.

Both existing agreements operate on a take-or-pay basis, requiring PSO to meet contractual payment obligations even when domestic demand falls.

The contracts also provide limited flexibility for diverting surplus cargoes, with profits from overseas sales accruing to QatarEnergy while losses are borne by PSO.

Formal price reviews began in March 2026, when QatarEnergy issued a notice for the second agreement on March 7 and PSO initiated a review of the first agreement on March 19.

Under the first agreement, failure to reach a revised pricing arrangement within six months of the review notice allows either party to terminate the contract, subject to its terms.

 

[Owaiz]

QatarEnergy declined the proposed rate but offered 11.36% for both contracts before presenting its final proposal of 11.96%.

So, the brilliant regime negotiated a higher price that the initial offer from Qatar ? I wonder how much went into the pocket of Mr 10% and other dalals.