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Report No. : |
344494 |
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Report Date : |
13.10.2015 |
IDENTIFICATION DETAILS
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Name : |
PAKISTAN OILFIELDS LIMITED |
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Registered Office : |
P.O.L. House, Morgah, Rawalpindi |
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Country : |
Pakistan |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
25.11.1950 |
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Com. Reg. No.: |
0000408 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is engaged in exploration, drilling
and production of crude oil & gas. |
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No. of Employees : |
787 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Pakistan |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
PAKISTAN - ECONOMIC
OVERVIEW
Decades of internal political disputes and low levels of
foreign investment have led to slow growth and underdevelopment in Pakistan.
Agriculture accounts for more than one-fourth of output and two-fifths of
employment. Textiles account for most of Pakistan's export earnings, and
Pakistan's failure to diversify its exportshas left the country vulnerable to
shifts in world demand. Official unemployment was 6.9% in 2014, but this fails
to capture the true picture, because much of the economy is informal and underemployment
remains high. Pakistan’s human development continues to lag behind most of the
region.. As a result of political and macroeconomic instability, the Pakistani
rupee has depreciated more than 40% since 2007. The government agreed to an
International Monetary Fund Standby Arrangement in November 2008 to preventa
balance of payments crisis, but the IMF ended the Arrangement early because of
Pakistan’s failure to implement required reforms. The economy has stabilized,
it continues to underperform and foreign investment has not returned to levels
seen during themid-2000’s, due to investor concerns related to governance,
electricity shortages, , and a slow-down in the global economy. Remittances
from overseas workers, averaging more than$1 billion a month, remain a bright
spot for Pakistan. After a small current account surplus in fiscal year 2011
(July 2010/June 2011), Pakistan's current account turned to a deficit where it
remained through 2014, spurred by higher prices for imported oil and lower prices
for exported cotton. In September 2013, after facing balance of payments
concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund
Facility. The Sharif government has since made modest progress implementing
fiscal and energy reforms, and in December 2014 the IMF described Pakistan’s
progress as “broadly on track.” Pakistan remains stuck in a low-income,
low-growth trap, with growth averaging about 3.5% per year from 2008 to 2014.
Pakistan must address long standing issues related to government revenues and
the electricity and natural gas sectorsin order to spur the amount of economic
growth that will be necessary to employ its growing and rapidly urbanizing
population, more than half of which is under 22. Other long term challenges include
expanding investment in education and healthcare, adapting to the effects of
climate change and natural disasters, and reducing dependence on foreign
donors.
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Source
: CIA |
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Business Name |
PAKISTAN
OILFIELDS LIMITED |
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Registered Address |
|
P.O.L. House, Morgah, Rawalpindi, Pakistan. |
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Tel # |
92 (51) 5487589, 97 |
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Fax # |
92 (51) 5487598, 99 |
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Website |
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Email |
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a. |
Nature of Business |
Principally
engaged in exploration, drilling and production of crude oil & gas. |
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b. |
Year Established |
November 25, 1950 |
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c. |
Registration # |
0000408 |
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In Karachi & Lahore |
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A. F. Ferguson & Co (Chartered
Accountants) |
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Khan & Piracha, Pakistan. Ali Sabtain Fazil & Associates,
Pakistan. |
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The Company is incorporated in Pakistan as a public limited company
and its shares are quoted at Stock Exchanges of Pakistan |
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Names |
Designation |
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Dr. Ghaith R. Pharaon Mr. Shuaib A. Malik Mr. Bilal Ahmad Khan Mr. Laith G. Pharaon Iqbal A. Khwaja Mr. Wael G. Pharaon Mr. Babar Bashir Nawaz Mr. Abdus Sattar Mr. Nihal Cassim Mr. Tariq Iqbal Khan |
Group Chairman Company’s
Chairman & Chief Executive Director Director Director Director Director Director Director Director |
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Categories |
Percentage
(%) |
|
Investment Corporation of Pakistan Banks & Financial Institutions Associated Companies Public Sector Companies Modaraba Companies Mutual Funds Investment Companies Insurance Companies Individuals |
0.00 16.59 52.86 1.36 0.01 4.75 1.41 7.54 12.10 |
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The Attock Oil Company Limited, incorporated
in England, is the holding company of Pakistan Oilfields Limited. |
A. Subsidiary
(1)
Capgas (Private) Limited.
(2)
Attock Chemicals (Private) Limited.
B. Associated Companies
(1)
Attock Petroleum Limited,
Pakistan.
(2)
Attock Information
Technology Services (Pvt) Limited, Pakistan.
(3)
Attock Refinery Limited,
Pakistan.
(4)
Attock Gen. Limited,
Pakistan.
(5)
Attock Cement Pakistan
Limited, Pakistan.
(6)
National Refinery
Limited, Pakistan.
Principally engaged in exploration, drilling
and production of crude oil & gas. Its activities also include marketing of
liquefied petroleum gas under the brand name POLGAS
and transmission of petroleum.
787
|
Considering the nature of the Company’s
business, information regarding capacity has no relevance. |
|
Years |
In Pak Rupees |
|
2014 2015 |
37,857,154,000/- 33,295,474,000/- |
Subject import globally from Companies belongs to U.K., U.S.A., European
Countries, Korea, Taiwan & Singapore
At Balkassar
(100% owned by POL), Balkassar X-1 was drilled to the target depth and tested,
the well started producing small quantity of oil intermittently after placing
jet pump. Rig was released on 2nd of February 2015. Side track of the well is
being considered to encounter better fractures. Balkassar B-7A well which is a
replacement well of B-7 was producing hydrocarbons when its casing collapsed
and the well was suspended. Good formation pressures were envisaged, recently
good pressures were also recorded at nearby B-4 well. The proposed B–7A well
has been spud on July 28, 2015 and is under drilling. At Pindori (operated by
POL with a 35% share), deeper (exploratory) formations proved tight at
Pindori-9 well. The Sakesar formation tested 81 barrels of oil and 0.26 mmscf
of gas per day. On the basis of production logging, bottom most intervals were
successfully plugged to isolate upper zone. After PLT job the well was put on
production and produced 139 barrels of oil and 0.46 mmscf of gas per day.
Currently the well is under production. At Tal block, (operated by MOL, where
POL has a pre-commerciality share of 25%), Manzalai-11 well was drilled down to
the target depth and after conducting cased hole drill stem test (CHDST) the
well produced 362 barrels of condensate per day and 12.50 mmscf of gas per day.
The well has been connected to the production line. Maramzai -3 well was
drilled down to the target depth and after acid test the well produced 830
barrels of condensate per day and 20.39 mmscf of gas per day. This well has
also been connected to the production line. Makori East-4 well was drilled down
to the target depth. After completion, the well produced 2,900 barrels of oil
per day and 12.34 mmscf of gas per day. Exploratory well Makori Deep-1, was
spud on June 22, 2015 and drilled down to 5,702 ft. Proposed target depth of
the well is ±18,144 ft. Also at Tal block, the well location of Makori East-5
has been completed and drilling will be started in the month of August-2015.
Rig is being mobilized. The Makori Gas Processing Facility (MGPF) is fully
functional and producing LPG of around 430 M.Tonnes per day. Following are the
highlights of Adhi field (operated by Pakistan Petroleum Limited, where POL has
11% share): Adhi-20: After hydraulic fracturing the well produced 8.5 mmscf per
day of gas and 600 barrels of oil per day. Adhi-21: After hydraulic fracturing
and cleaning the well produced 163 barrels of oil per day and 2.1 mmscf of gas
per day.
The Company
continues to play a vital role in the oil and gas sector of the Country. During
the year the Company saved foreign exchange in excess of US$ 598 million (2014:
US$ 650 million) for the Country. Contribution to the national exchequer, in
the shape of royalty and other government levies, was Rs 9,348 million (2014:
Rs 11,192 million).
The outlook for Pakistan Oilfields Limited is very positive with an exciting and aggressively drilling programme underway. The financial strength of the Company, as evidenced from its balance sheet, remain very strong with no borrowing and are in a position to actively pursue opportunities for growth. The Company has an excellent platform from which to succeed and it shall be able to show a significant improvement in future results.
(1)
Faysal Bank Limited, Pakistan
(2)
Bank Al-Habib Limited, Pakistan.
(3) Habib Bank Limited, Pakistan.
(4) MCB Bank Limited, Pakistan.
(5) National Bank of Pakistan.
(6) Bank Al-Falah Limited, Pakistan.
(7) Habib Metropolitan Bank Limited, Pakistan.
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Currency |
Unit |
Pakistani Rupees |
|
US Dollar |
1 |
Rs. 104.40 |
|
UK Pound |
1 |
Rs. 159.50 |
|
Euro |
1 |
Rs. 117.75 |
Pakistan Oilfields Limited (POL) a subsidiary of the Attock Oil Company Limited (AOC) was incorporated on November 25, 1950. AOC was founded in 1913 and made its first oil discovery in 1915 at Khaur, District Attock. In 1978, POL has been investing independently and in joint venture with various E & P companies for the search of oil and gas in the country. In addition to exploration and production of oil and gas, POL plants also manufacture LPG, solvent oil and sulphur. POL markets LPG under its own brand name of POLGAS as well as through its subsidiary CAPGAS (Private) Limited. POL also operates a network of pipelines for transportation of its own as well as other companies’ crude oil to Attock Refinery Limited.
The subject company enjoys excellent
credibility in the International Business Community, Worldwide. The company is Principally engaged in exploration, drilling
and production of crude oil & gas. Subject can be considered good
for normal business dealings at usual trade terms and conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.73 |
|
|
1 |
Rs.99.30 |
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Euro |
1 |
Rs.73.60 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.