Page 21 - Pakistan Oilfields Limited - Annual Report 2021

The oil and gas value chain starts with discovering fields and ends with providing

products to end consumers. The different stages include exploration, production,
storage, processing/refining and marketing.

The three facets of the value chain are:

Upstream sector (Exploration, Production) Pakistan Oilfields Limited – After conducting
- known as Exploration and Production seismic surveys to assess fields for potential
companies, are primarily involved in identifying presence of hydrocarbon reserves, wells are
and assessing potential Oil & Gas producing then drilled to extract Oil & Gas. Main products
blocks, drilling exploratory wells & developing extracted by POL include Crude Oil and Natural
infrastructure in economically viable oil fields to Gas.
produce commercial quantities of hydrocarbon.
Crude oil is stored in storage tanks and then
Midstream sector (Transportation and transported through pipelines and bowzers to
Storage) - primarily involved in transportation our own Khaur Crude Decanting Facility. After
of hydrocarbons. The various modes of decanting it is transported through pipelines
transportation include pipelines, rail and road and oil bowzers to refineries. Similarly, Natural
transportation. Gas is transported through pipelines to SNGPL.

Downstream sector (Refining and Retail The LPG supply chain starts with production
Markets) - is the process of refining, marketing of oil and gas at wells. Gas is then converted
& selling. These companies transform & refine into LPG and distributed to end users in LPG
crude oil into a variety of derivative products cylinders.
such as liquefied petroleum gas, gasoline, jet
fuel, diesel oil, other fuel oils etc., which are in
turn, sold to different end-users.

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