Page 102 - Pakistan Oilfield Limited - Annual Report 2022

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PAKISTAN OILFIELDS LIMITED
SWOT Analysis

The Board provides strategic direction to management and fulfills its fiduciary responsibilities with
a sense of commitment. The Board remained engaged with management which helped it to meet
the exceptional and unforeseen challenges. The Board has fulfilled all its mandatory responsibilities
including ensuring compliance with all legal and regulatory requirements for POL and addressing
possible threats/weaknesses while taking into consideration company’s strengths and opportunities.

Strength

• POL is part of Attock Group - the only vertically integrated group in Pakistan
• POL’s Strengths are its balance sheet, cash generation, technical expertise and most of all, the
dedication and will of its employees.
• Well established pipeline network (from POL owned and operated fields to Attock Refinery
Limited) which safely transported 8.6 million barrels of crude during the year.

• Only E&P Company in Pakistan which is also marketing LPG under its brand name POLGAS. The
Company has established a good storage capacity for continuous supply.
• POL has a separate IT wing to control and monitor related E&P functions and continuously
upgrading its IT structure to cope with recent advancement in technology

Weakness

• The Company’s future earnings and profitability is dependent upon the production and reserves
of its oil and gas fields. Due to inherent nature of the business, the actual production may differ
materially from estimates.
• The difficulty of extraction, the possibility that the accessible reserves in any deposit are
smaller than estimated and reliance on depleting natural resources and which could result in
decline conventional as well as incremental revenue
• POL’s oil prices are linked with the international oil prices which is uncontrollable factor for POL
as well as the industry as a whole. Any unfavorable variance in the international prices adversely
affects the Company’s profitability.
• Delays in approvals from Regulators (e.g. grant of new blocks, work plans and gas pricing etc.)
which affects the operations and profitability.
• High cost for exploration/drilling.