Pakistan Petroleum Limited; Where Energy is Opportunity

The demand for energy is perpetual reality of contemporary world whereby availability and access to energy is decisive factor in rise or fall of nations. The Pakistan Petroleum Limited (PPL) remains undaunted vanguard of Pakistan`s energy sector since the mid- 1950s. While lending inevitable support to unleash potential of indigenous natural gas sector, PPL could safely claim to be the pioneer of this crucial sector. The syndicate not only specializes in exploration, investigation, discovery and production of petro-commodities such as crude oil and natural gas but also provides Liquefied Natural Gas (LNG).

The prestigious Board Members and Executives ensure the competitiveness, innovation, transparency and smooth operationalization of this energy goliath. In retrospect, PPL has also exhibited muscular commitment to corporate social responsibility and proliferation of myriad people-centric welfare initiatives in marginalized and neglected peripheries of Pakistan depict the energy giant`s unwavering dedication to business ethics. The vigorous commitments to communities render PPL an inclusive and pluralistic corporate venture which believes in establishing egalitarian social order by ushering sustainable development and inclusion of disenfranchised segments. The robust adherence to corporate ethics and moral code distinguishes PPL from strictly profit-oriented brutally capitalist enterprises.

The International Energy Outlook 2006, predicted sturdy rise in global energy demand over the next 27-years concomitant with excessively competitive global economic growth. Though, the pandemic induced global recession has inflicted debilitating blow to world economic order but robust vaccination drive is poised to bequeath space to global economic architecture. According to International Energy World, economic growth will be average 3.8 percent per annum after 2006. Much of the growth in world energy demand will come from non-OECD Asia, which includes China and South Asian countries; demand in the region will nearly triple over the projection period. Total primary energy consumption in the non-OECD countries will grow at an average annual rate of 3.0 percent between 2003 and 2030. In contrast, for the Organization for Economic Cooperation and Development (OECD)—countries energy use will grow at a much slower pace of 1.0 percent per year over the same period.

The herald of Parag Khanna`s ‘Asian Century’ exhibit that the region would grease its economic wheels from astronomical consumption of energy. Prior to pandemic, Pakistan’s economy was growing at an average rate of over 7.6 percent per annum for three years consecutive years. Furthermore, Pakistan is determined to vigorously implement its economic vision against the backdrop of state-sponsored vaccination drive and declining infection curve. This brings the important role of Pakistan Petroleum Limited in the economic equation because economic activity necessitates insurmountable energy demands. Successive discoveries of large natural gas reserves have shaped Pakistan’s energy landscape since the 1950s. These sparked, in the 1960s, the growth of the domestic fertilizer industry and large public-sector gas distribution utilities. Between the mid-1970s and the 1990s, all the major power plants that the government set up were based on dual fuel, with natural gas as the primary fuel. The share of gas in Pakistan’s primary energy mix stood at approximately 50% in 2005.

In retrospect, Pakistan imports nearly a third of its energy capital in the form of oil, coal, and liquefied natural gas (LNG). An import-centric energy policy is not sustainable for Pakistan, making it energy insecure in the long term. Besides strapping the country of its meager foreign exchange reserves, it exposes the economy to international energy price shocks, putting the entire economy at risk through inflation. The kaleidoscopic inflationary pressures reduce the competitiveness of the country’s exports, further debilitating the country`s exports concomitant with its ability to pay for energy imports.

These dynamics necessitate robust exploration drive on behalf of PPL in order to make Pakistan energy secure state and replenish the fast dwindling reserves. Fortunately, PPL is already incessantly working on elaborate roadmap to discover and utilize indigenous energy resources. The pandemic induced breakdown of global supply chains rendered energy insecure states more vulnerable to external shocks. Furthermore, economic recession always precipitates military adventurism among states because politicians usually hide their inefficiency and incompetence under veneer of concocted external threat and brinkmanship. Thus, resurgence of great power politics is the writing on the wall and resultant choking or blockade of vital chokepoints and Sea Lanes of Communication further raises the alarm bells for energy insecure states.

In order to achieve energy self-sufficiency and protect Pakistan from external shocks, Pakistan Petroleum Limited developed strategic collaborations with acclaimed energy exploration companies concomitant with mastering novel integrated technologies. The Exploration & Business Development (E&BD) Directorate of PPL  comprises three rich Assets; South, North and Frontier Asset (Frontier Asset includes a block in Iraq) and also looks after partner-operated offshore blocks in Pakistan and one partner operated onshore block in Yemen. Furthermore, new endeavor, International & Unconventional (NVIU) and Subsurface Technologies & Support Services (STSS) division are operated by E&BD Directorate. Setting a prestigious precedent, Pakistan Petroleum  Limited (PPL) is currently operating thirteen production fields in Sui, Kandhot, Adhi, Mazarani, Chachar, Adam, Adam west Shahdadpur, Shahdadpur west, Shahdadpur east , Fazal and Dhok Sultan. Amongst these ventures, the first two are absolutely owned by PPL and has dynamic partnerships with 23 partners in other fields whereby well coordinated team efforts operate tirelessly to produce mutually beneficial dividends. Daily gas production of PPL from its operated and partner-operated fields stands around astronomical one billion cubic feet equivalent (bcfe) of gas per day, which translates into nearly 22 percent of the country’s total population (gas equivalent). The company’s major clients comprises Sui Southern Gas Company Limited (SSGCL), Sui Northern Gas Pipelines Limited (SNGPL) and Water and Power Development Authority.

One substantial characteristic of Pakistan Petroleum Limited is its vibrant people-centric social welfare program. The tyranny of corporatocracy has long ripped communities after harbinger of Capitalist World Order. In retrospect, the ruthless corporate ambiance has long remained oblivious to sufferings and miseries of community and average masses. Pakistan Petroleum Limited (PPL)’s Corporate Social Responsibility (CSR) endeavour was envisioned when PPL’s commercial operations in Sui in the 1950s.  Sensing the needs of their employees and natives, it established a school for children of workers and local communities. Thus, Corporate Social Responsibility has been the trademark of PPL’s corporate culture. In 2001, the PPL Welfare Trust (PPLWT) was established to achieve geographic and pluralistic diversity to the company’s CSR programme, which includes education, health, infrastructure development, socio-economic uplift of marginalized communities, particularly those living in and around its operating areas concomitant with post-disaster rehabilitation. Moreover, in order to ensure rapid delivery, substantial grass-root impact and sustainability of its social investments, all endeavours are planned and implemented after lengthy deliberations and mutual agreement with all stakeholders, including community representatives, local governments and non-governmental organizations. Hence, PPL is inclusive and progressive corporate venture which believes in ushering sustainable development by inclusion of vulnerable and disenfranchised. The robust adherence to corporate ethics and moral code distinguishes PPL from strictly profit-oriented brutally capitalist enterprises.

While persistently striving to diversify PPL’s Corporate Social Responsibility portfolio and register its welfare presence in the under-developed and deprived peripheral urban areas, the company has commenced Corporate Donations Programme in 2016-2017.  As one of the frontline corporate providers of sustainable inclusive social development and welfare services in some of the most disenfranchised and neglected peripheries of the country, PPL has received Pakistan Corporate Philanthropy Award for 14 consecutive years from 2004 to 2017. Hence, PPL is shining example for other corporate endeavours in its scramble to play proactive role in development of society. The simultaneous investment in technology, manpower and communities are imperative for sustainable business models and PPL`s propensity towards generous social investments render its business model worthy of emulation. The success and perpetual presence of any corporate venture in any area depends upon favorable attitude of native community towards that venture. In order to cement affirmative image in local communities, its crucial to secure mutually beneficial engagement with them and here comes the prime importance of egalitarian philanthropic initiatives. The mainstream corporate ambiance is blatantly oblivious to social responsibility and this explains that why costly ventures in remote areas mostly fail to deliver.

Pakistan is all set to grease its industrial development wheels by virtue of CPEC`s Special Economic Zones and major SEZ reside in remote hitherto neglected swathes of Pakistan. Thus, successful operationalization and long term presence could only be secured by emulating PPL`s commitment to community corporate social responsibility model.

PPL being the vanguard of energy exploration and production in Pakistan is striving in all capacities to practically implement its vision of making Pakistan energy self-sufficient state. If PPL achieves this serene mission, then it would be tantamount to colossal service to people of Pakistan. The energy price fluctuations and consequent inflation owing to external shocks routinely break the bank of ordinary masses. The country is still struggling to increase its export base and export competitiveness and value addition again depends upon stable energy prices. The company is tirelessly collaborating with acclaimed global energy giants to increase Pakistan`s production capacity concomitant with aggressive exploration drive. In this way, Pakistan will save mammoth foreign exchange reserves which are currently diverted to pay enormous energy import bills. PPL`s efforts to improve system`s efficiency and affordability depict that Pakistan`s energy landscape will be self-sufficient and self-replenishing within few years. Thus, PPL is demonstrating that energy could be opportunity, instead of liability

Newsletter SignUp