Page 63 - Pakistan Oilfield Limited - Annual Report 2022
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Annual Report 2022
partners in operated and non-operated In order to mitigate the risk, the Company
projects and by providing them necessary maintains strong control and has also taken
resources/information/approvals required insurance coverage.
for flow of work.
16. Increase in fuel cost: The Company is trying
12. Terrorist attacks: A terrorist attack could to switch to cheaper alternatives from
have a material and adverse effect on the diesel to gas in order to keep the operating
Company’s business. The Company has cost low and keep the fields economically
taken a terrorist insurance cover of all its viable.
material installations to mitigate this risk.
17. Increase in the SNGPL line pressure: Due
13. Third party liability: A third party liability to ever increasing SNGPL line pressure, it
could have a material and adverse effect on has become difficult to inject gas into the
the business. In order to mitigate the risk, SNGPL network. In order to avoid flaring of
the Company is continuously evaluating the produced gas the Company is continuously
areas where insurance cover is required monitoring the SNGPL line pressures and
and it has also taken a third party liability has initiated the process of increasing its
insurance which covers its drilling areas, delivery pressures.
pipelines and material installations.
18. Overdue receivables : The Company
14. Human Resource Risks: Lack of succession issues the invoices at the earliest possible
planning may lead to hierarchical time and is continuously monitoring
breakdown. The Company has prepared the receivables position with the help
department wise organogram and jobs of reports generated through Business
descriptions. Requisitions for new positions Intelligence module. Where required, the
and replacements are promptly processed Company adopts a strong follow up with
and advertised accordingly. refineries and SNGPL for swift payment of
its invoices.
15. Lost in hole/damage beyond repair: During
drilling, costly equipment are run in the
hole for several jobs at different depths.
