PETRO-NEWSPETRO-NEWSDecember 2013 Edition

Linking the Energy World

PIP’s 50th Annual General Meeting

From (L to R) Mr. M. Aslam Sanjrani, CEO-PIP, Mr. Aftab Husain, MD-PRL, Mr. Asim Murtaza Khan, MD-PPL, Mr. Tariq Khamisani, President-UEPL, Mr. S. Tariq Rizavi, MD-PARCO.

The 50th Annual General Meeting (AGM) of the Petroleum Institute of Pakistan was held on December 19, 2013 at Pearl Continental Hotel, Karachi. The meeting was chaired by Mr. Asim Murtaza Khan, Managing Director & Chief Executive Of�cer, Pakistan Petroleum Ltd (PPL) and it was commenced with a recitation of the Holy Quran by Mr. Muhammad Aslam Sanjrani, Chief Executive Of�cer, Petroleum Institute of Pakistan (PIP) who also presented the updates on PIP’s activities for the information of the members.

The agenda of the Annual General Meeting (AGM) was then successfully undertaken which included the following:

1- To con�rm the minutes of the Extra-Ordinary General Meeting (EOGM) held on March 18, 2013 at the Sheraton Hotel, Karachi

2- To receive and adopt Report of Directors and Auditors together with audited �nancial statements of the Institute for the year ended June 30, 2013.

3- To appoint M/s. A.F. Ferguson & Co. as Auditors of the Institute for the year 2013-2014 and to �x their remuneration of Rs: 88,000/- per annum.

The chairman thanked the directors and members for attending the meeting.

There being no other item on the agenda, the meeting was closed with a vote of thanks to the chair.

Dr. Asim Hussain – ChairmanMr. Muhammad Aslam Sanjrani - CEOMr. Asim Murtaza Khan - PPLMr. Tariq Khamisani - UEPLMr. M. Arif Hameed - SNGPLMr. Aftab Husain- PRLMr. Omar Yaqoob Sheikh - SHELLMr. S. Tariq Rizavi - PARCOMr. Sh. Imran-ul-Haque - EVTLMr. Hassan Sobuctageen - FOTCOMr. Mobin Saulat – ISGSMr. M. Adil Khattak – ARLMr. Zuhair Siddiqui – SSGCMr. Amjad Parvez Janjua – PSOMr. Muhammad Riaz Khan – OGDCL

PIP Board of Directors

IN THIS ISSUE

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Technical Training of Local Youth in partnership with the Hunar Foundation

Pictorial Coverage 2011-13

Augmentation of MAKORI EPF

Rules of Business

Industrial News (World Wide)

9SSGC’s media campaigns advocate gas conservation and refraining from gas theft to avoid heavy penalties

10 Energy Security through Responsible Self Reliance

12 US-Pakistan trade mission elicits potential investor interest

3rd Health Safety Environment (HSE) Conference -2013

TakingPIPDizzier Heights of

to

Success

United Energy Pakistan (UEP) is an exploration and production company operating across 9 districts of Sindh province. Development indicators in the concession districts are, much like the rest of the rural landscape, quite poor. Educational facilities that exist, struggle to cater to the local demand in terms of population as well as quality of education imparted. Many educated youngsters are unemployed and lack necessary skills that can generate suf�cient income. As a major business working in the area UEP does its best to address local issues with the allocated budget it earmarks for its CSR contribution. A well thought out and robust philosophy governs all CSR and Social Investment projects. One of the three key areas the company chooses to focus on is building the capacity of local youth to enable them to improve income generation.

UEP, in partnership with The Hunar Foundation has initiated a programme for young members of the local community from its concession area at Post-Matriculation or Intermediate level. This project focuses on Mechanical and Electrical disciplines. UEP sponsors this year-long technical & vocational training course for 40 individuals from its Badin & Mirpurkhas Khipro (MKK) concession blocks.

At the commencement of the programme, advertisements are placed in local language newspapers. Applicants undergo a rigorous exam and interview process, supervised by the Hunar Foundation with only top scoring candidates being selected.

The partner NGO for this programme, Hunar Foundation is committed to providing livelihood opportunities for youth through quality vocational training of international standards. The NGO has established a campus in Tando Allahyar district which awards certi�cates endorsed by the Trade Testing Board and City & Guilds (UK). The Hunar Foundation’s training programmes test baseline skills including pro�ciency in English language, basic workshop practices, HSE and entrepreneurship along with speci�c industry needs-based vocational skills. Apart from

professional training, education on work ethics is also included in the curriculum to ensure that those who train under this programme are not only highly skilled but also practice integrity. Graduates of the programmes are readily employable both locally and abroad.

Boarding and lodging for the candidates, selected for the UEP funded training programme, is provided by the Rashid Memorial Welfare Organization (RMWO). Rashidabad is located on the Hyderabad-Mirpurkhas road near Tando Allahyar. The project is spread over 100 acres of beautiful fertile land. It houses schools, residence units, healthcare facilities, a vocational training centre and recreational facilities. RMWO focuses on education, health, environment and socio-economic uplift.

This project not only provides a sustainable technical education for local youth to enhance their employment prospects but it also creates a cadre of productive professionals that can contribute to businesses in rural Sindh and beyond.

Dear Readers,

Welcome to the re-launch of PIP’s Newsletter “Petro-News”. Petro-News aims to provide information and analysis on industry wide developments and PIP’s activities along with articles cover-ing technical, non-technical and socio-economic aspects of the oil and gas sectors.

This newsletter is the new version after a halt of almost three years. During the halt, PIP organized some remarkable events and launched its much awaited executive learning center; you will see the highlights of all activities in this issue.

PIP is functioning as a body providing professional information, analysis & guidance on Pakistan’s energy sector to key energy sector stakeholders. The on-going initiatives are holding the series of seminar/lectures/workshops on the energy sector issues in the country with possible solutions, weekly on-line Energy Reports, monthly oil/gas prices report, international standard learning courses for oil & gas professionals in Pakistan, bi-annual

published Pakistan Energy Outlook book, the �agship bi-annual Pakistan Oil & Gas Conference and PIP’s coordinating role as the country charter member for the global bodies such as Interna-tional Gas Union (IGU) and World Petroleum Council (WPC). PIP is unique in these activities since no other energy sector entity in Pakistan performs these tasks.

We are appreciative of the support of our members for their contribution of relevant articles for this edition of Petro-News and we look forward to their continued encouragement in making this newsletter the mouthpiece of the industry. We hope that the contents and presentations contoured in this edition will be of interest and value to our readers.

The dawn of the year 2014 brings with it fresh aspirations and provides us with an opportunity to take new initiatives and inno-vative measures to bring further coordination in the activities of the industry players for a streamlined approach towards our ultimate goal – a strong and prosperous Pakistan.

Happy New Year!

EDITOR’S NOTE

Technical Training of Local Youth in partnership with the Hunar Foundation

For CorrespondenceMuhammad Danish, Editor, PETRO-NEWS1st Floor, Federation House, Block V, Kehkashan, Clifton, Karachi-75600, Pakistan.Tel: (92-21) 35378701, 35378702 Fax: (92-21) 35378704 Email: info@pip.org.pk

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Makori Early Production Facility (EPF) was initially arranged through M/S Schlumberger, in phases, on rental basis and its �rst phase was commissioned on 8th January, 2006. Later on, after testing the integrated facility (inclusive of all the three phases) for an extensive period of time, it was purchased by TAL JV on 8th January, 2007. By this time the facility had already successfully processed 2637 MMSCFD of gas, 144,025 BBLS of Condensate and 172,706 BBLS of Crude.

The initial design capacity of the facility was 20 MMSCFD of gas; however, as a result of an in-house de-bottlenecking study and its implementation during the ATA in August 2008, with nominal expenditure the said capacity was increased to 30 MMSCFD of gas.

Later on, in view of additional upside potential of Mamikhel, Makori and Makori-East, construction of a new gas processing facility namely Makori-GPF was proposed and the same is expected to be ready soon. However, the increasing demand of gas in the country and availability of new Makori-East wells, prompted MOL Pakistan and its JV partners to plan about temporarily, i.e. till the availability of the GPF, producing the said wells through Makori-EPF after its necessary augmentation. So in May 2011 in order to verify the concept and review the options for realizing the same, an in-house study was carried out. The study recommended the addition of some new process equipment in addition to associated piping modi�cations to successfully handle the expected additional volumes of gas and condensate at the subject EPF. During the said study, the existing crude heater and �ash gas compressor came out to be as the major bottle-necks for handling the expected larger amounts of �ash gases from the rich-gas/condensate feed of Makori East. It was thus thought essential that in addition to other necessary equipment, a 6 MMBTU/hr Crude Heater and a robust four stage Flash Gas Compressor with a capacity of more than 6MMSCFD may also be arranged.

In view of the obvious �scal advantages of the proposal and its bene�ts for the country on one hand offsetting the import bill with respect to oil and addition of much needed gas supplies to the national grid on the other, the JV extended wholehearted

Augmentation of MAKORI EPF

support to the proposal. Followed by the same, necessary approvals and bidding process contract was awarded to Schlumberger for the required augmentation of the EPF. In addition to other minor challenges the arrangement of the above �ash gas compressor proved to be a major one during the project. After successfully negotiating all the said challenges, with extraordinary support and guidance of all the JV partners, the augmented facility stood commissioned early 2013. The integrated facility is currently processing around 30MMSCFD of gas and 8000bpd of crude/condensate.

The project, in every sense is an exhibit of TAL JV’s commitment to the optimal and accelerated development of its assets, is also an example of its entrepreneurship and awareness of its role in mitigating the energy needs of the country. However, it is just another milestone along the journey and with the active support of our partners many more such milestones are expected to be achieved in due course. One of them i.e. Makori GPF is just round the corner now.

Courtesy: MOL

Rules of Business

The Annual Technical Conference (ATC) 2013, jointly organized by Society of Petroleum Engineers (SPE) and Pakistan Association of Petroleum Geoscientists (PAPG), an af�liate of the American Association of Petroleum Geologists (AAPG), was held between November 26 and 27 at the Islamabad Serena Hotel under the theme ‘Energy Revolution through Hydrocarbon Resources’.

A key technical event of the local upstream oil and gas industry, the conference drew a large crowd of Exploration and Production (E&P) professionals and service providers, government of�cials, academia and students. MD and CEO Asim Murtaza Khan and DMD and COO Moin Raza Khan and Pakistan Petroleum Limited’s (PPL) technical staff participated in the event.

Minister of State for Petroleum and Natural Resources Jam Kamal Khan, who was chief guest at the conference inauguration, addressed participants, stating that the government was pursuing a vibrant and investor-friendly policy to attract more local and international players in the oil and gas sector. He also apprised the audience that the government would soon initiate import of Lique�ed Natural Gas (LNG) on a short-term basis and was working on the plan to explore shale gas.

Chairman, ATC 2013 and Director, Institute of Science and Technology, Oil and Gas Development Company Limited (OGDCL) Dr. M. Saeed Khan Jadoon and other distinguished speakers also spoke on the occasion, urging government to grant exploration licenses for blocks auctioned. The need to initiate exploration in offshore areas was also stressed.

Addressing participants at the closing ceremony, Federal Minister for Inter-provincial Coordination Riaz Hussain Pirzada highlighted that the current energy crises warranted search for new energy resources on a war footing. The minister added that securing the country’s energy security remains a priority on the government’s agenda and increasing local energy production is the only way of ensuring cheap, reliable energy supply to the people and industry. He mentioned that shale and tight gas as well as Thar coal needed to be exploited to their full potential as highlighted in the conference proceedings.

Around 30 professional papers, including those by PPL’s technical staff, were shared during the conference. Two student paper contests were also held in the earth sciences and petroleum engineering categories as was a panel discussion on pressing energy issues chaired by Jam Kamal Khan with participation by heads of PPL, OGDCL, Mari Petroleum Company Limited, MOL Pakistan Oil and Gas Company B.V., Kuwait Foreign Petroleum Exploration Company, Weatherford Oil Tool M.E. Limited and Schlumberger Seaco Inc.

In addition, two technical pre-conference courses were also arranged on ‘How to avoid work over – an innovative way to bring life to old/ dead wells’ and ‘EOR/ IOR of mature/ depleted �elds’ along with a �eld trip to study ‘Triangle Zone of Deformation North of Soan Syncline and its Petroleum Prospectivity’ in the North East Potwar Region.

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Minister of State for Petroleum and Natural Resources Jam Kamal Khan speaks at the inaugural session.

Courtesy: PPL

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Attock Re�nery Limited 3rd Health Safety Environment (HSE) Conference -2013In today’s highly competitive and performance driven business climate nobody can afford to rest on its laurels. Sustainable business growth is possible only when we take care of the interests of our stakeholders and the society at large.

Attock Re�nery Limited (ARL) has always strived to play an active role in the promotion of knowledge sharing events in all spheres of corporate business including Health, Safety & Environment (HSE), Plant Maintenance & Operations and Human Resources. These events are not only in line with ARL’s core value of, “Learning & Innovation” but also provide sound basis for future strategies, growth & development of staff. Learning from each other experiences is a key to continual improvement.

The 3rd HSE conference was held at ARL in September 2013 in which over 85 delegates from 37 industries across the length and breadth of Pakistan participated and showed their commitment and interest about the importance of HSE. This event was a clear demonstration of the growing awareness and realization of the importance of HSE Culture in the corporate sector in today’s dynamic business environment. This conference was a reach out to the HSE leaders for sharing of best practices and discussions on how to meet the global challenges facing the industry today.

It is pertinent to mention that 1st & 2nd HSE Conferences were organized and held at ARL in 2008 & 2012. Similarly four HR Conferences and one Plant Maintenance & Operations Conference have been held during the last �ve years. Considering the importance of HSE in our business environment, ARL has now made HSE Conference a regular event to be held every alternate year.

Speaking at the occasion, Mr. M. Adil Khattak, Chief Executive Of�cer, ARL emphasized the importance of HSE and related this to corner stone of ARL business as well as moral and social responsibility. Implementation and continuous compliance with ISO-9001, ISO-14001, OHSAS-18001, ISO-17025 and ISO-50001 not only keep us on the right track but also enable continuous improvement, he said.

It is important to highlight that ARL over a period of time have brought substantial improvements in the HSE areas as detailed below:-

1. Development of Scenario Based Emergency Plans for all plants.

2. Carrying out regular HAZOP study of all its operating units. 3. Development and implementation of Process Safety Audit

Protocols for re�nery Plants & Tank Farm area.4. Re-evaluation of the Fire Water Network System and it’s up

gradation.5. Development and implementation of software for Incident

investigation & reporting System.6. Contribution in development of National Fire and Safety

Policy for Pakistan.7. Continuous compliance with NEQS standards.

8. Upgradation of ef�uent treatment facility by addition of secondary treatment unit.

9. Environmental Impact Assessment (EIA) Studies and other consultancy and analytical services to the industry by our National Cleaner Production Centre (NCPC).

10. Hospital waste incineration services 11. Research & development on solar energy. 12. Recycling of Canteen wastewater for use at Citrus Orchard

through drip irrigation 13. Biogas production from cattle waste at Morgah Biodiversity

Park14. Organic Farming at ARL Vegetable Farm 15. Annual Tree Plantation drives, 19,000 saplings last year16. Bio-remedial treatment of oil spillages.17. Free Medical Camps, Health Awareness seminars and Poor

patient Fund.18. Body Mass survey and weight management program.19. Occupational Health Survey of our employees20. Fumigation of premises and surrounding areas against

dengue and other viruses.21. Extensive HSE awareness and training programs.22. Established Industry/Academia collaboration for various

research projects.23. R&D in collaboration with NUST for capturing CO2 from

re�nery stacks for production of Bio-Diesel and animal feed etc.

Based on these activities, some of the Research Papers produced by ARL employees have been published in reputed International Journals. The keenness and dedication for the promotion of safety culture in ARL has resulted in a signi�cant reduction of our Total Accident Incident Frequency Rate (TAIFR) from 15 to 2.3 in the last 6 years. Achievement of 14.2 Million Safe-Man-Hours last year was another manifestation of ARL commitment towards safety.

Cont... on page 11

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Pictorial Coverage (2011-13)

Pakistan Energy Conference held on April 10th – 12th, 2011 at Serena Hotel, Islamabad

Pakistan Energy Outlook Seminar held on November 18th, 2011 at Pearl Continental Hotel Karachi

2011 Strategic Workshop to identify PIP’s working themes held on December 22nd, 2011 at Golf Club DHA, Karachi

World Gas Conference (WGC) & Exhibition held in Kuala Lumpur, Malaysia, from June 4-8, 2012 where PIP represented the Gas sector of Pakistan

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Seminar on ‘Achievements of Oil, Gas Sector Outlined’ held on October 8th, 2012 at OGDC House Islamabad.

Delegation from China’s largest power company “Dongfang Electric Corporation”(DEC) visited PIP of�ce on November 2nd, 2012

Seminar on ‘Shale Gas Potential & Challenges’ held on February 23rd, 2013 at Dr. Ziauddin University, Karachi

PIP Executive Learning Centre launched on March 10-11, 2013 at Marriot Hotel, Islamabad

Industrial News (World Wide)

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Asian countries combat rising LNG prices

India and Japan are considering joint tenders for the import of lique�ed natural gas (LNG) in a bid to reduce the price of LNG imports in Asia, which is currently four times more expensive than in the US.

Increased demand for LNG in Asia, the world’s largest importer of LNG, has seen prices rise accordingly as countries such as Japan and South Korea wean themselves off nuclear energy, and China try to reduce reliance on coal.

Japan’s crack plan to solve the world’s energy problems: Turn the moon into a giant solar panel

A Japanese construction company is proposing to solve the energy problems facing Japan, and ultimately the entire planet, by turning the Moon into a solar power plant.

Shimizu Corp, which is based in Tokyo, wants to lay a belt of solar panels 350 kilometres wide around the equator of the Moon and relay the resulting constant supply of energy to “receiving stations” on Earth by laser or microwave transmission.

Future world energy demand driven by trends in developing countries: EIA

EIA's International Energy Outlook 2013 (IEO2013) projects that growth in world energy use largely comes from countries outside of the Organization for Economic Cooperation and Development (OECD).

Energy use patterns for countries inside the OECD are relatively stable between 2010 and 2040 as primary energy use is projected to grow by 0.5% per year, roughly the same rate as population growth in those countries.

BP Pushing the Limits of Technology to Develop Ultra-Deep Fields

In order to survive into the future, big oil companies are forced to constantly search for large discoveries, driven by the necessity to replace the steady decline in production at existing �elds.

After so many decades of producing oil from easy to access �elds, the only large discoveries left are found in remote or dif�cult to access formations.

Drones will Generate Energy at 50,000 Feet then Beam it Back to Earth

New Wave Energy UK, is the �rst that plans combine several ideas together in a �ying unit that generates energy from multiple sources and then beams the energy down to the planet’s surface. The company’s product consists of a drone that would �y around at about 50,000 feet generating energy from solar, wind, and heat, using a bit to power itself, and then transmitting the rest down to a receiver on Earth.

Tullow, Africa Oil drill �fth northern Kenya oil discovery

Tullow Oil PLC and Africa Oil Corp. have reported a �fth oil discovery in northern Kenya where they plan to run six rigs full time for the foreseeable future. The Agete-1 exploratory well on Block 13T has discovered and sampled movable oil with an estimated 100 m of net oil pay in good-quality sandstone reservoirs.

Agete-1 is the �fth consecutive oil discovery in the �rst of a chain of multiple rift basins on Africa Oil’s acreage in the region. Agete-1 derisks several follow-on prospects north of and on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the signi�cant resource base already discovered.

U.S. shale oil productions could impact Saudi light Grades

U.S light oil production from shale and tight rock formations may impact Saudia Arabia in the medium-term by forcing it to sell its lighter grades at lower prices, according to Jadwa Investment Co.

The price difference between light and sweet grades of crude oil, which contain less sulfur and yield more transportation fuels, and heavier and sour grades will narrow as the U.S. adds more light crude from shale formations over the next �ve years.

Surge Seen in U.S. Oil Output, Lowering Gasoline PricesDomestic oil production will continue to soar for years to come, the Energy Department predicted, scaling to levels not seen in nearly half a century by 2016.The annual outlook by the department’s Energy Information Agency was cited by experts as con�rmation that the United States was well on its way — far faster than anticipated even a year ago — to achieving virtual energy independence.

The report predicted that the increase in United States production would contribute to a decline in the world oil benchmark price over the next few years to $92 a barrel in 2017 from a 2012 average of $112 a barrel, which should translate into lower prices at the pump for consumers.

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Responsibly, wisely, ethicallySSGC’s media campaigns advocate gas conservation and refraining from gas theft to avoid heavy penalties

A natural gas utility with a customer-centric vision has a dual responsibility. It has to guarantee an uninterrupted supply to its rising customer-base while at the same time ensure that the customers use the resource responsibly and ethically. Gas losses mean less gas available to the consumers and at the same time reduced pro�ts for the Company, not to mention personal embarrassment in the form of penalties if they resort to gas theft.

SSGC runs its media campaigns in tandem with its ongoing efforts aimed at resolving issues of major signi�cance. For instance, the Company has been confronted for quite some time now with a major problem of Unaccounted-for-Gas or UFG. The phenomenon of UFG therefore occurs when Gas Sales are less than the Gas Purchases. Lower gas sales result from gas theft by the consumers.

UFG is an international phenomenon and every utility company in the world faces this problem. According to Internationally Accepted Industry Standards of UFG, 1 to 3% is considered ideal, 3 to 6% is adjudged reasonable and more than 6% is considered excessive.

Today, SSGC faces an annual UFG of nearly 11%, which is well above the internationally accepted standards more so since with every 1 bcf increase in UFG, the Authority takes away Rs. 1 billion from the Company’s pro�ts as a penalty. The Company operates on a �xed rate of return of 17% per annum on the net average �xed operating assets under tariff regime governed by Oil and Gas Regulatory Authority (OGRA).

While it is dif�cult to quantify gas theft in UFG, it is presumed to be approximately 20% of the total volume. Other factors responsible for the rising trend in UFG levels in Pakistan include underground and overhead gas leakages, measurement errors, illegal connections and such other connections which by pass the meters installed, shift of sale from Bulk-to-Retail customers, frequent third party damages and law and order situation in franchise areas.

The Company has been pursuing a number of measures including forming large anti-theft surveillance teams, utilizing technology including temper proof meters and regulators and creating Strategic Business Units for greater responsibility and accountability. Despite numerous measures taken by SSGC to control this menace, UFG levels have continued to soar in the recent years.

Although SSGC has been continuously replacing and rehabilitating leaking pipelines, the efforts have been more on a reactive basis especially when there are complaints of low pressure or interrupted gas �ows. For a more viable technical solution to control UFG across the board, the Company’s $200 million �ve-year period Natural Gas Ef�ciency Project (NGEP) was approved by the Government with the assistance of World Bank.

Selling the idea of the evils of gas theftPractical measures will not bear fruit if mass awareness about the perils of UFG is not propagated on a recurring basis. But how do you ‘sell’ the menace of UFG to the public? A robust concept that can be easily understood by the general public and one that emphasizes on solution accompanied by strong visuals are keys to making a desired impact.

SSGC’s all out war against UFG was given a major boost in 2011-12 with the promulgation of Criminal Law (Amendment) Act 2011. The Amendment gave the Company cart blanche for not just intensifying its raids against the miscreants involved in what is now a major crime, but also a free hand to lodge FIRs with local police. The Company’s electronic and print advertisements contributed hugely towards educating the public and more so cautioning the miscreants by proclaiming that gas theft is a big crime which imposes heavy �nes and prison sentences of up to Rs. 5 million and 10 years, respectively. Images of hand cuffs and prison cells are used to reinforce the message visually.

Cont... on page 11

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Energy Security through Responsible Self Reliance

Mari Petroleum Company Limited has drilled 7 wells and acquired 354.74 Sq. Km 3D and 269.125 line Km 2D Seismic data during the last one year. These milestones shall go a long way in setting the strategic direction of the Company and boosting revenues. The Company is also exploring opportunities of expanding its business to become a player in the National and International hydrocarbon Market, as outlined in its diversi�ed accomplishments below:

a) Establishment of 2D/3D Seismic Data Acquisition Services: The newly setup Mari Seismic Unit (MSU) offers state of the art 2D/3D/4D Vibroseis & Dynamite acquisition services, In-�eld 2D/3D processing, LVL Data Acquisition and Interpretation and complete Geodetic services. MSU has been successfully commissioned on its maiden and major seismic project, through the acquisition of approximately 1,000 square kilometers 3D seismic data in Mari Gas Field. The data acquisition/recording operations currently in progress are targeted to be accomplished in the next eight months.

b) Acquisition of 2500 HP VFD Land Drilling Rig: Apart from its 1500 HP Land Drilling Rig, MPCL’s newest addition to its land drilling �eet is the state of the art 2500 HP VFD Drilling Rig, with drilling capabilities ranging from deep to ultra-deep wells.

c) Establishment of 2D & 3D Seismic Data Processing Center: In order to attain in-house data processing capabilities, MPCL has established its own 2D/3D Seismic Data Processing Center which is capable of undertaking 2D/3D processing of newly acquired data, reprocessing of vintage data and quick reprocessing of key seismic lines. In parallel, the center will also be used for quality checks/ assurance and analysis of the outsourced processing / reprocessing projects to eliminate the requirement of long-term presence of a Quality Control professional at the overseas processing center.

d) Establishment of Mari Services Department: For an effective and ef�cient management of the new services, the Company has reorganized to set-up a services department,

comprising of a 2D/3D Seismic Data Acquisition Unit, a 2D/3D Seismic Data Processing Center, three land drilling rigs and two slick line units. Mari Services Department will not only cater to in-house needs, it will also offer these services at competitive rates to other E&P companies working in Pakistan and abroad.

e) New Premises: Ever increasing E&P portfolio of the Company coupled with establishment of Mari Services Department has necessitated a modern, purpose built, and spacious structure to accommodate its expanding operations. In order to cater for increased space requirements, work on construction of a new building of the Head Of�ce, located next to the old premises is in its �nal stages. The new structure will be ready by end of the calendar year.

f) Corporate Social Responsibility: Amongst an array of CSR activities carried out by MPCL during the year, establishment of Mari Education & Medical Complex stands out for its utility to the community that it will serve. The foundation stone of the Mari Education & Medical Complex was laid in May 2012 with the purpose to cater for the educational and medical needs of the outsourced workers and the community residing in the vicinity of Mari Field, Daharki. This signature project, costing Rs. 100 million, is now complete and shall commence provision of free, quality education and health facilities to the Company employees as well as the locals of Daharki.

Courtesy: MPCL

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Gas theft cases have continued to climb in Balochistan even though consumption is less compared to Sindh. Print, TV advertisements and �iers have featured highly in�uenced religious leaders or ulemas, considered as one of the most strongest opinion makers underscoring the point that meal cooked from ‘stolen’ gas is ‘haram’ and is strictly prohibited from the Islamic point of view.

Gas Leakages:

Leakage is the action of unmeasured gas passing from within a transmission/distribution system and to the outside atmosphere. In its advertisements, the Company makes it a point to ensure that it not just cautions the general public about UFG and its causes, but also gives them useful suggestions to minimize gasleaks. The purpose is two-fold, one, to prevent serious accidents and two, to facilitate the customers in managing their gas bills better. In its print advertisements related to leakages, the Company also advocates regular check-ups of home appliances to minimize the dangers of gas leaks by providing step-by-step details of two very simple tests – house line test and Soap test - that can be easily conducted by the homeowners.

Gas Conservation:

It would have been easy for the Company to run its conservation campaigns by making pompous statements ‘instructing’ the customers to conserve natural gas. However, that would not

have been a very pragmatic approach. SSGC’s media campaigns, therefore, stress on giving instant tips to the customer to ensure that they use gas not just sensibly but do it in such a way that they do not risk their lives in the process. These campaigns are run in both winter and summer seasons. The premise is simple: Use gas with responsibility so that there will be enough for the future.

Scrolls and announcements:

The Company’s Corporate Communication Department recently came up with an ingenious idea of having scrolls, break bumpers (minute long brief announcements containing a voice over, placed between a pause in the program and its commercial breaks) and sponsorship announcements run on television and radio channels to convey UFG related messages. Since the frequency of insertions is quite high especially during prime time programming, listeners are able to register the Company’s messages related to gas theft, leakages and other issues that directly impact the Company and its consumers. Recurring insertions cause a top of the mind recall and ultimately a positive action from the customers.

SSGC’s message is simple: It is committed towards serving its customers in the best way possible but if they themselves show callousness in the use of gas and �out laws with impunity, they will do little towards preserving this rich natural resource besides facing heavy penalties in the process.

Courtesy: SSGC

ARL HSE endeavors have also been recognized by many national and international organizations as under:- - The prestigious “The Royal Society for Prevention of

Accidents (RoSPA) Gold Award” for two consecutive years in 2012 & 2013 for Occupational Health & Safety.

- UN Global Compact Award. - WWF & ACCA’s Best Sustainability Report award for three

consecutive years.- ICAP, ICMA awards on sustainability Reporting in 2010,

2011, and 2012.- Economic Cooperation Organization (ECO) -Green Industry

Award 2011.

HSE once thought to be an unattractive cost to a project, is now considered as the most critical one. Companies now realize that high HSE standards are part of an ef�cient operation and of doing good business. Improving trust and communication with stakeholders, applying technology to improve health, safety & environmental (HSE) performance, and dealing with global climate change are the most important sustainable development issues. The challenges faced by industry are similar in nature and its solution by one of the corporate entity can help others. There is a saying: “If you are convinced that your organization has a sound safety culture, you are almost certainly mistaken.”

The conviction of robust and the best can lead to weaken judgment that could result in an increased risk of undesirable incidents, hazards and accidents. This kind of attitude undermines ability to spot danger signals.

The conference concluded with complete agreement on sharing knowledge - not only about solutions and best practices but also for our problems and challenges.

During the one day conference, 12 papers were read by representatives of reputed organizations with topics ranging from, WWF Green Of�ce, Behavior Based Safety, Energy and Recourse Conservation, Overview of Building Energy Code of Pakistan, Ergonomics, Nurturing Our Future through Environmental Stewardship, Effective Safety Supervision in Turnaround, ISO-50001 Implementation at Attock Re�nery Limited, Implementation of Safety Management System at KAPCO, Human Factors in Risk Assessment, Improving LTIFR through Contractor Safety Management Practices, Operating Experiences of aMDEA in CO2 Removal System and Cleaner Production Practices & Environment Theme 2013.

In the end, Management of ARL thanked all participants for attending the Conference and making it a resounding success.

Courtesy: ARL

Cont... from page 5

3rd Health Safety Environment (HSE) Conference -2013

Cont... from page 9

Responsibly, wisely, ethically

12

Courtesy: PPL

US-Pakistan trade mission delegates at the ExxonMobil Research and Development Centre, Houston, USA

US-Pakistan trade mission elicits potential investor interest

Aligned with the government’s efforts to draw international investment into Pakistan’s energy sector, a US-Pakistan trade mission led jointly by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and US Ambassador to Pakistan Richard G. Olson visited Houston, USA between November 14 and 15, 2013 to scope out investment opportunities in parleys with leading American companies.

Organized by the US Embassy in Islamabad, this was the �rst trade mission of its kind since the restart of the Strategic Dialogue process by US Secretary of State John Kerry and Prime Minister Nawaz Sharif in August and builds on the US-Pakistan business opportunities conference held in Dubai back in June.

The trade mission delegation included of�cials from the Ministry of Petroleum and Natural Resources, heads of 17 oil and gas companies, including both state- owned entities such as Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), Pakistan State Oil, Sui Southern Gas Company Limited and Sui Northern Gas

Pipelines Limited and private �rms and representatives from the US State and Commerce departments.

According to the US State Department, both Abbasi and Olson stated the US administration’s efforts to join hands with the Pakistani government in urging US investors to venture into Pakistan’s oil and gas sector. Representatives from international oil and service companies were informed that Pakistan is an attractive place to invest, particularly in offshore areas, equipment provision and supply of Lique�ed Natural Gas.

“The mission represents the strong emphasis the US places on i ts trade and investment relationship with Pakistan and US support for stronger business-to- business ties between our two countr ies,” said Olson. For his part, Abbasi highlighted t h e g ove r n m e n t ’s t r a d e - n o t - j u s t - a i d stance in his interaction with US business representatives.

Pakis tani delegates also visited facilities, i n c l u d i n g t h e ExxonMobil Research and Development Centre in Houston, to see cutting-edge exploration technology and equipment at work.

The US-Pakistan trade mission was organized in conjunction with the �fth bilateral US-Pakistan Energy Working Group held two days earlier on November 12 in Washington, USA.

The working group held a day-long session, focusing on the criticality of stable energy supply in accelerating Pakistan’s economic growth. The working group was co-chaired by Abbasi and Federal Minister of Water and Power Khawaja Muhammad Asif on the one hand and by US Special Envoy and Coordinator for International Energy Affairs Ambassador Carlos Pascual on the other. Olson, Pakistan Embassy Chargé d’Affaires Asad M. Khan and senior of�cials from the two countries also attended the session. The delegation also met US Secretary of Energy Ernest Moniz.

According to the US Department of State, the working group is expected to foster bilateral cooperation in Pakistan’s energy sector. “The US and Pakistan have worked closely and on a sustained basis to better develop and diversify Pakistan’s energy sector, a key priority of the Pakistani government and people,” stated the State Department spokesperson. At the meeting, the Pakistani delegation highlighted the need to expand power generation, promote further energy ef�ciency and develop hydroelectric and renewable resources.

Abbasi sought US support to attract private-sector investment into Pakistan’s oil and gas industry through joint ventures with public sector companies such as PPL and OGDCL, reiterating in particular the import of US technological cooperation to tap huge reserves of shale gas/ oil, believed to be the ninth largest in the world.

Brass tacks