Pakistan Oil Fields (POL) – Analyst Briefing Highlights (FY25 Results & Outlook)
Pakistan Oil Fields (POL) held its analyst briefing today to discuss FY25 financial results and provide an update on operations and future plans. Key points are as follows:
• Razgir Production: Gas production from Razgir has begun at 28 mmcfd, with a potential to reach 35 mmcfd. Both Razgir and Mamikhel fields are selling gas to third parties at a 16% premium to Petroleum Policy 2012 prices.
• Exploration Activity: The company is drilling two wells in the Jhandial Block and is sidetracking the Pindori-9 well. A discovery in one of these wells is expected soon. Future drilling in Jhandial will depend on ongoing results. POL is also actively conducting seismic surveys in the Pariwali, Ikhlas, Noor, and Langrial blocks.
• Development Drilling: Work continues in partner-operated wells, including Bilitang-1 (Tal Block) and Gurgalot X-1 (Gurgalot Block). Management noted that the Tal JV operator remains focused on maintaining production through compression projects and additional drilling.
• Gas Curtailment: Management highlighted that resolving gas curtailment issues will take time, especially during the winter peak. POL’s JV partner in the Tal Block is particularly affected.
• Offshore Ventures: The company considers offshore drilling to be high-risk with uncertain basin potential, and therefore remains cautious about pursuing such projects.
• Windfall Levy (Under Litigation): Revenues related to the disputed windfall levy on oil and condensate have not been recognized in financials. A favorable court decision would be positive for POL. Currently, the company holds PKR 34.7bn in payables linked to this disputed revenue.
• Third-Party Gas Sales (Tax Treatment): Management clarified that the windfall levy applies on the pricing premium earned above Petroleum Policy 2012 levels, and this is tax-deductible.
https://dps.psx.com.pk/download/document/261117.pdf
