PPL endeavours to achieve a continuous growth in exploration activities for replenishment of hydrocarbon reserves.
Hydrocarbon discoveries are becoming increasingly scarce in Pakistan. This calls for concerted exploration activities aimed at maintaining and possibly increasing the discovery ratio in the country.
During the year PPL participated in eleven exploration ventures in various parts of the country. Out of these, two areas namely Tal and Khanpur (Block-22) resulted in gas discoveries of commercial quantities.
The Company takes cognisance of the reducing number of low risk-low cost areas in the country and accordingly plans to embark on exploration activities in the relatively un-explored areas such as Balochistan / Pishin Basins.
The Company is also considering the prospects of venturing into international exploration to increase its hydrocarbon reserves portfolio. In this respect several prospective countries are under consideration.
This invigorated approach to exploration emphasises Management's commitment to increase the value of shareholders equity. The Company has also identified four additional blocks in Balochistan, namely Mumin, Khuzdar, Nushki and Nauroz for prospective exploration activity.
PRODUCE & PROSPECT PRODUCTION STRATEGY: PPL's production strategy is aimed at optimising reservoir recovery in the most efficient manner by using the latest technological advancements to achieve operational excellence at all locations.
The Company's production team is making relentless efforts to optimise production efficiency and to bring new discoveries online at the earliest. During the year the Mazarani and Sawan gas fields have been brought on production whereas work on upgrading the compression facilities at Sui is in final stages.
During the year the acquisition of the Purification Plant at Sui was successfully completed.
The deficiencies in the operational and safety aspects of the acquired Plant were a major concern which have gradually been addressed.
The Plant is increasingly becoming more reliable and is expected to reach the high operational standard maintained at other facilities operated by the Company.
In line with the efforts to optimise recoveries in producing fields, additional development wells will be drilled in the Pab reservoir, Sui. Development drilling and installation of compression facilities have been planned for Kandhkot gas field in order to enhance the existing production of 115 MMcfd to 165 MMcfd.
Expansion of the LPG / NGL processing plant at Adhi Field is also being considered for efficient exploitation of remaining reserves.
TEAMWORK & DEDICATION HUMAN RESOURCES: PPL is committed to create a work environment based on transparent employer - employee relationship and endeavours to develop a work force not only satisfied in terms of professional development and compensation but also committed to the future development of the Company.
In order to achieve these objectives, the Management has embarked upon a well-structured programme of human resource excellence through training both within and outside the country.
The courses are carefully selected in order to ensure compatibility with the individual's aptitude and its relevance to his work profile.
The results of these strenuous efforts can be gauged from the continually improving employee efficiency measured through sales per employee.
During the year, over 700 members of the staff attended various courses both in-house as well as at local institutions. In addition 23 members of the staff were nominated to attend foreign training.
Management's relationship with the Labour Union remained satisfactory during the year encouraging an open and constructive partnership. During the year the transition of staff on take-over of the Sui Purification Plant was completed smoothly.
HEALTH, SAFETY AND ENVIRONMENT: PPL remains committed to the health and safety of its employees, neighbours, communities, stakeholders and all others affected by its activities.
In its endeavours to ensure that operations of the Company meet statutory requirements and are carried out with minimal environmental impact, regular HSE training is imparted to increase the level of awareness amongst the employees.
During the year, 333 members of the staff participated in courses of various HSE topics including legal obligation in the light of national environmental laws, first aid training, specialised emergency response training etc.
In order to comply with its statutory obligations, the Company obtained No Objection Certificates from the Government after conducting Initial Environmental Examination for all drilling, seismic and field development activities.
The Management has introduced a 'no-blame' culture in the Company in its efforts to enhance the level of comfort amongst its employees to appropriately record and report injury incidents.
The Company also intends to implement ISO 14001 EMS based integrated HSE management system.
In this respect the Company will be undertaking a gap analysis in order to identify areas requiring bridging to comply with the requirements of the aforesaid ISO.
EDUCATION & PROGRESS SOCIAL RESPONSIBILITY AND COMMUNITY WORK: Since its inception, the Company has been an active and responsible corporate citizen.
The Company is fully dedicated to the cause of upliftment of Pakistan's under developed society.
PPL's core values attach utmost importance to the development of under privileged communities in rural locations, specially in the areas of its operations.
The main focus of the Company's social welfare activities has been in the spheres of education and general health care.
Sui Model School (managed by PPL) was founded in 1951 to promote primary and secondary education among local populace. Presently the school has a staff of 35 teachers who are imparting education to around 2,500 students.
The Company is also maintaining a 40 Bed Medical Hospital at the Sui Field. This hospital is fully equipped with the modern surgical facilities and a team of specialist doctors is providing medical services to the employees and their families.
To channelise its social commitment and to give a systematic dimension to its welfare objectives, the Company formed an independent trust titled "PPL Welfare Trust" in 2001.
The Trust is responsible for execution of various welfare projects in Sui and other operating areas. Main projects undertaken by the Trust include:
-- Provision of air-conditioned mobile dispensary at Sui
-- Free eye treatment camps at Dera Bugti
-- Repair and uplift of Technical Training Center at Sui
-- Construction of a new High School at Sui under Taleem Foundation
-- Construction of a new 50-Bed Sui Welfare Hospital
-- Water supply scheme at Manzai
-- Additional classrooms at Lakki Marwat district
-- Construction of road in Chakwal near Adhi field
The Company is highly committed to improve the living standards of the people of backward areas of the country by making basic education and health facilities more and more accessible.
CORPORATE ACTIVITIES: The Company has formulated and is implementing strong internal and financial control policies, including setting up of an independent Internal Audit Department reporting directly to the Managing Director and the Board Audit Committee.
The Company's operating policies and procedures for day to day business are based on best industry practices and the fundamental principle of transparency.
The Board of Directors met six (6) times during the financial year 2002-2003. In compliance with the Corporate Governance guidelines issued by the Government of Pakistan, the Board has constituted three-sub-committees namely Finance, Human Resource and Audit Committees.
The Committees are composed of both executive and non-executive Directors except Audit Committee which comprises of only non-executive Directors.
The terms of reference of these Board Committees and the names of Committee members are given below.
BOARD FINANCE COMMITTEE: The Board Finance Committee is composed of the following:
(i) S.R. Poonegar, Chairman
(ii) S.Munsif Raza
(iii) G.A. Sabri
(iv) M. Iqbal Awan
Main functions of the Committee include review of periodic financial statements, annual work program and budget.
The Committee is also involved in the progress review of all major projects and status of implementation of approved work program. It is responsible for recommending to the Board, the approval of major financial commitments of the Company including selection of new exploration areas, farm-in/farm-outs and relinquishment of exploration blocks.
The Committee also performs a constant review of the Company's long term financial projections and Strategic Plan.
Six (6) Board Finance Committee meetings were held during the year 2002-03.
Board Human Resource Committee
THE BOARD HUMAN RESOURCE COMMITTEE IS COMPOSED OF THE FOLLOWING:
(i) M.A.K. Alizai, Chairman
(ii) S.Munsif Raza
(iii) G.A. Sabri
(iv) Abdul Wadood Khattak
Human Resource Committee is mainly responsible for providing policy guidelines regarding organisational plan and staff compensations.
The Committee makes a periodic review of competitive compensation practices including evaluation of staff remuneration policies prevailing in the industry. It is also involved in recommending to the Board, Company's staff succession planning and promotions of senior management.
The Committee also reviews the implementation and progress of the staff training and development policies approved by the Board. Human Resource Committee met three (3) times during the year.
BOARD AUDIT COMMITTEE: The Board Audit Committee is composed of the following:
(i) Sajid Zahid, Chairman
(ii) M. Iqbal Awan
(iii) S.R. Poonegar
(iv) Abdul Wadood Khattak
Audit Committee examines the adequacy of financial policies and practices to ensure that an efficient and strong system of internal controls is in place.
The Committee also reviews the audit reports issued by the internal Audit Department and the compliance status of audit observations. Four (4) Audit committee meetings were held during the year.
In line with its policy of promoting good corporate practices, the Company issued a Code of Ethics to its employees in July, 2002.
Although an informal Code of Ethics was already being followed in the Company, its formal implementation reaffirms the Company's commitment towards achieving high levels of Corporate excellence.
OUR VISION: Our vision is to maintain PPL's position as the premier producer of hydrocarbons in the country and at the same time make a strategic transition to become an international company, exploiting oil and gas resources beyond the borders of Pakistan, resulting in value addition to shareholders' investment and to the nation as a whole.
OUR MISSION: Our mission is to optimise hydrocarbon production and pursue an aggressive exploration programme in the most efficient manner on the local as well as international horizon through a team of professionals utilising the latest developments in the exploration and production technology and maintaining the highest standards of health, safety and environment protection.
(Chief Executive & Managing Director PPL)
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