KARACHI: Pakistan Petroleum Limited (PPL) has announced an ambitious plan to bolster the nation’s energy reserves, committing to drill 12 new oil and gas wells within the current year. The announcement came during the company’s annual general meeting, where positive progress on new discoveries was highlighted.
However, this optimistic push for exploration is being hampered by a severe financial squeeze. The PPL management revealed that the company is facing immense difficulty in recovering its massive outstanding dues from the Sui Southern and Sui Northern gas companies. PPL has now formally requested government intervention to help secure these payments.
During the meeting, PPL’s Managing Director, Sikandar Memon, expressed hope that the gas sector’s long-standing circular debt might soon be resolved. He noted that the International Monetary Fund (IMF) is “on board” with the overall circular debt management plan for both the power and gas sectors.
Looking ahead, PPL shared several promising updates. The ‘Lal X-1’ exploration well in Khyber Pakhtunkhwa is currently in its testing phase. Furthermore, major exploration projects are planned for 2026-2027 in Balochistan and offshore, which will involve collaboration with both local and international partners.
The Reko Diq gold and copper project was also mentioned, with production anticipated to begin between 2028 and 2029.
In a crucial clarification, the management stated that PPL will not receive any direct funds from the Rs 1,250 billion syndicated loan designated for clearing the power sector’s circular debt. Instead, PPL will only be paid its dues once SNGPL receives its share of funds as part of the broader debt resolution mechanism.
