AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad: Pakistan Oilfields Limited (POL) held a Corporate Briefing Session to discuss its financial results and future outlook. The company announced the commencement of gas production at its Razgir site, with plans to boost capacity by the end of 2025. Despite a drop in oil and gas production during the last fiscal year, POL shared updates on ongoing projects and new acquisitions.
The management revealed that Razgir’s current production is between 20-25 million cubic feet per day (mmcfd) and is expected to increase to 30 mmcfd after plant enhancements. These upgrades are projected to be completed by the end of 2025. The company is capitalizing on a 16 percent premium over PP2012 pricing due to third-party allocation of Razgir gas.
POL disclosed its cautious approach towards offshore investments, noting that such ventures will only be considered if they present exceptionally strong prospects. The company’s oil and gas production figures for the fiscal year showed a decline of 6 percent and 14 percent, respectively.
The Tal block experienced a significant curtailment impact, losing around 90-95 mmcfd of gas and 5-7 percent of oil production. However, POL-operated fields remained unaffected. The company is working with Sui Northern Gas Pipelines Limited (SNGPL) to clear an outstanding backlog of receivables, which currently stands at Rs18 billion.
Significant progress has been made in exploration activities, with 3D seismic acquisition completed in the Hisal and Taung blocks, and drilling ongoing at the Gurgalot block. The Jhandial-2 sidetrack is nearing completion, and drilling has commenced at Jhandial-4, expected to spud in the second quarter of fiscal year 2026.
POL reported success in the latest bidding round, securing the Jherruk block and the Chah Bali exploration license with a 30 percent stake alongside the Oil and Gas Development Company (OGDC). Agreements for the Multanai and Saruna West blocks have also been signed with the government.
The company remains involved in a windfall levy case, which is still pending in court, and no revenues have been recorded from it yet. POL reported a net profit of Rs5.4 billion, marking a 2.1-fold increase year-over-year.
JS Global maintains a “BUY” stance on POL, highlighting the company’s current trading at an estimated price-to-earnings ratio of 6.9 for fiscal year 2026 and 5.6 for fiscal year 2027.