Monday, 2 September 2013

Karachi Stock Exchange: Daily News Update

POL prices move up
The government on Saturday raised the prices of petroleum products by up to Rs4.71 per litre, citing the rising trend in the international market. However,  following  directives  of  Prime  Minister  Nawaz  Sharif,  the  government made  a  partial  increase  of  Rs2.5  per  litre  in  the  price  of  high  speed  diesel (HSD),  which  is  mostly  used in  agriculture  and  transport  sectors. The  summary  sent  to  the  prime  minister  had  proposed  an  increase  of  Rs3.57  per litre  in  the  HSD  price.  The  government  has  given  a  subsidy  of  Rs1.07  per litre  in  the  price  of  HSD  to  facilitate  consumers  following  direction  of  the prime minister. The new price of HSD is Rs112.26 per litre. The price of petrol has gone up by Rs4.64 per litre, from Rs104.50 to Rs109.14 per litre. The price of kerosene, which is used as a fuel for stoves in remote areas where liquefied petroleum  gas (LPG)  is  not readily available,  has seen an increase of Rs4.71 per litre, bringing its price up from Rs101.28 to Rs105.99 per litre.

Govt earned Rs595bn from oil, gas in FY13
The  government  collected about  Rs595 billion  in  different taxes on  oil  and gas  in  2012-13,  accounting  for  almost  31  per  cent  of  total  revenues  collected  by  the  Federal Board  of  Revenue at Rs1,936bn.  As  such, the oil  and gas sector has emerged as the single largest  contributor to Pakistan’s total revenue.  According  to  final  financial  data  reconciled  by  the  Accountant General Pakistan Revenue (AGPR), the federal government was able to collect  Rs110bn  as  petroleum  levy  on  sale  of  petroleum  products  during  the outgoing fiscal year against Rs60bn a year before, registering an increase of 83pc.  Likewise,  the  government  also  collected  Rs32.2bn  as  development surcharge on natural gas in 2012-13 compared with Rs23bn collected in the preceding  year,  showing  an  increase  of  39pc.  Similarly,  an  amount  of Rs65.2bn  was  recovered  on  account  of  royalty  on  oil  and  gas  during  the year  under  review  compared  to  Rs62.8bn  a  year  before,  a  4  per  cent  increase. In addition, the government also collected about Rs23.8bn as Windfall Levy against crude oil during the FY13 compared with no collection under this head a year before.

OMV discovers oil, gas at Mehar gas field
The  Austrian  Exploration  and  Production  (E&P)  Company  OMV  has  announced  discovering  of  18  Million  Cubic  Feet  per  Day  (MMCFD)  gas  and 1,550 barrel crude oil from Mehar gas field located in Ranikot area of Sindh. The  presence  of  hydrocarbons  was  proven  through  wire-line  logging  and testing operations. During testing, a total of 18 MMCFD of gas plus an additional  1,550  barrels  of  condensate  (Gross  4500  boe/d)  flowed  from  the Ranikot  formation. The  Sofiya-2  exploration  well  is  located  in  the  Mehar exploration  block  in  the  Sindh,  around  10km  north  of  the  Mehar  gas  and condensate field. OMV Maurice Energy Limited holds a 75 percent share in the exploration license; joint venture partners are Government Holding Private Limited (GHPL, 5  percent),  Ocean Pakistan Limited (15  percent), and Zaver Petroleum Company (5 percent). The new discovery's proximity to the Mehar field provides the opportunity of using the Mehar gas and condensate plant for processing. The Mehar field development is in its mechanical completion phase; production start-up is expected in Q4/13.

SSRL raises investment for Thar projects
Sino-Sindh Resources (Pvt) Limited (SSRL) has reached a  subscription and cooperation agreement with a consortium of investors  consisting of  Global  Mining  (China) Limited (GMC) and  Asiapak Investments  (Asiapak). SSRL  is  planning to  develop coal mine with a capacity of 10 million tonne a year and integrated 1,200 MW mine-mouth power plant in Block 1 of Thar coalfields, in which the company holds a 30-year mining lease. The project cost is estimated at $2.6 billion for which a bankable feasibility has been completed through China Coal Technology and Engineering Group (CCTEG). SSRL was awarded the block,  which covers  around  150  square kilometres, after  a  round of  international  competitive  bidding in  September  2011. The  block  holds  lignite coal  resources of  nearly 3.5bn  tonne  including 600m  tonne of  measured, 1.9bn  tonne  of  indicated and 1bn tonne of inferred resources. Under the terms of the agreement, GMC will provide the equity funding for the project and will also arrange the required debt facilities from a consortium of Chinese banks.

PTA with Indonesia goes effective tomorrow
The Preferential Trade Agreement (PTA) between Pakistan and Indonesia will become operational from September 1, creating new opportunities for mutually beneficial exploration of the huge trade potential that exists between the two countries. The last hurdle in the actualisation of the PTA was affectively removed by the signing of Mutual Recognition Agreement on Plant  Quarantine  and  SPS  Measures  in  Jakarta on  Friday. Pakistan  Ambassador Sanaullah and  Head  of  Indonesian  Agricultural  Quarantine  Agency  (IAQA)  Mrs  Banun  Harpini  signed  the  agreement,  according  to  information  made  available  here. Indonesia has signed MRA with only USA, Australia, New Zealand, Thailand and Canada. From South Asia, Africa, Europe and Middle East, Pakistan has become the first and the only country which will be able to export its fruit to Indonesia without subjecting it to Indonesian Quarantine Rules and Regulations.

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