Petroleum Exploration

What Petroleum Exploration does

Petroleum Exploration (Pvt.) Ltd (PEL) is Pakistan's largest private-sector exploration and production (E&P) company and the core operating subsidiary of the Shahzad International Group of Companies, headquartered in Islamabad. Incorporated in 1994, PEL holds 8 Development and Production/Mining Leases, 9 onshore exploration licenses, and 1 offshore exploration license in Pakistan, plus three exploration blocks in Morocco (Haha Onshore, Oualidia, and Doukala Abda). Core producing assets include the Ayesha Gas Complex (3 fields in Badin South Concession producing 11.26 MMSCFD gas and 69.87 BBLSD condensate to SSGCL since February 5, 2020), Badar Gas Field (124 BCF recoverable reserves with a 30 MMSCFD gas dehydration facility commissioned August 7, 2021), Kandra Gas Field (2.86 TCF recoverable reserves), and Block-22 (Hassan, Sadiq, and Khanpur D&P Leases injecting into the SNGPL grid). Technical capabilities span 3D seismic acquisition and interpretation, onshore and offshore drilling (the Group's GM Drilling has over 45 years of experience across 250+ wells), horizontal drilling, sour gas processing via MDEA amine sweetening, and gas dehydration. PEL achieved its first oil discovery in 2024 at the Wasu-1 well in Badin IV North Block, testing 7.74 MMSCFD of gas and 500 BOPD, and has recently added four gas discoveries projected to contribute 65 MMCFD to the national grid.

PEL operates an enterprise B2B model selling all natural gas and condensate production to government-nominated off-takers, specifically SSGCL and SNGPL, under multi-year OGRA-regulated supply contracts following government pricing policies including the Low BTU Pricing Policy 2012 and Tight Gas (E&P) Policy 2011. The company operates exclusively through direct sales with no retail distribution layer. Strategic positioning emphasizes indigenous energy production to reduce Pakistan's import dependency, supported by joint venture partnerships with national oil companies (OGDCL, PPL, GHPL) domestically and ONHYM in Morocco. Downstream vertical integration is underway through wholly-owned subsidiaries: Kandra Power Company (120 MW power plant utilizing Kandra low BTU gas), Gas Ocean (oil and gas pipeline transmission and distribution), Shahzad LNG (LNG import, processing, storage, and distribution), and Shahzad Processing Solutions. The Group's recent acquisition of KUFPEC Pakistan assets (Dadu, Kirthar, Tajjal, and Qadirpur Concessions with Bhit and Qadirpur Leases) materially expanded the upstream portfolio and signaled an M&A-led growth posture. PEL employs 10,000+ staff across the Group and has contributed over US$31.067 million to the Government of Pakistan through statutory payments including royalty, taxes, and bonuses.

The company was founded by Zaheer-ud-Din, who passed away in May 2019; leadership transitioned to his son Shahzad Zaheer as Chairman and Chief Executive, with second-generation family members and seasoned industry executives from OGDCL, Saudi Aramco, BP, Schlumberger, Occidental, ADNOC, and Petronas Carigali occupying senior technical and operational roles. In 2019, PEL secured a stay against the Government of Pakistan's revocation of five exploration blocks and subsequently secured their revival in 2022, demonstrating both regulatory engagement capability and operational continuity. PEL has won a landmark ICC arbitration award upholding Pakistani jurisdiction over joint operating agreement disputes.

Name

Petroleum Exploration

Legal name

Petroleum Exploration (Pvt.) Ltd

Website

https://pepl.com.pk

Company type

Private

Founded year

1994

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

PEL is Pakistan's largest private-sector exploration and production company, operating 8 D&P leases and 10 exploration licenses across Pakistan plus 3 blocks in Morocco, supplying natural gas, condensate, and oil to government utilities SSGCL and SNGPL.

Ownership category

akta.pro rank

Product category

Oil and Gas Exploration and Production

NAICS

Crude Petroleum Extraction (21112), Oil and Gas Extraction (211), Oil and Gas Extraction (2111)

SIC

Crude Petroleum & Natural Gas (1311), Oil & Gas Field Exploration Services (1382), Oil & Gas Field Services, Nec (1389)

akta.pro primary industry

Production Operations & Well Optimization (Artificial Lift, Flow Assurance) (EUALAAAF)

Keywords

• Oil and gas exploration
• Hydrocarbon production
• Natural gas development
• Upstream exploration licensing
• Condensate and oil sales

Headquarters

HQ city

Islamabad

HQ country

Pakistan

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Personnel, Infrastructure, Technology or R&D, Others

Revenue model

1. Natural Gas Sales: PEL produces and sells natural gas to government-nominated buyers including SSGCL and SNGPL. Gas is supplied from multiple fields including Ayesha Gas Complex, Badar Gas Field, Kandra Gas Field, and Block-22 fields. The company currently produces approximately 18 MMSCFD from Ayesha Complex, 2.52 MMSCFD from Badar, and additional volumes from other assets.
2. Condensate Sales: Alongside natural gas production, PEL sells condensate produced from gas wells to government-nominated buyers. The Ayesha Complex alone produces approximately 70 BB LSD of condensate daily.
3. Oil Production: Following the Wasu-1 discovery in Badin IV North Block, PEL achieved its first oil discovery producing approximately 500 barrels of oil per day alongside 7.74 MMSCFD of gas.
4. Asset Acquisition (KUFPEC): PEL expanded its portfolio through acquisition of KUFPEC Pakistan assets including Dadu, Kirthar, Tajjal, and Qadirpur Concessions with Bhit and Qadirpur Leases.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Petroleum Exploration (Pvt.) Ltd (PEL) is Pakistan's largest private-sector exploration and production (E&P) company operating a portfolio of 8 Development & Production/Mining Leases, 9 onshore exploration licenses and 1 offshore exploration license in Pakistan, plus 3 overseas exploration blocks in Morocco. The company explores for, develops and produces hydrocarbons (natural gas, condensate and crude oil) and operates associated gas processing facilities including amine sweetening and gas dehydration plants, selling output under long-term supply contracts to government-nominated buyers.

Product overview

Petroleum Exploration (Pvt.) Ltd (PEL) is Pakistan's largest private-sector exploration and production company, operating as the core business of the Shahzad International Group of Companies. The company operates a diversified portfolio of hydrocarbon assets including 8 Development & Production/Mining Leases, 9 Onshore Licenses, and 1 Offshore Exploration License in Pakistan, plus 3 overseas exploration blocks in Morocco. Core offerings include oil and gas exploration services, gas production from fields (Ayesha Gas Complex, Kandra Gas Field, Badar Gas Field), and gas processing facilities. The company also has subsidiaries in power generation (Kandra Power Company), gas transmission (Gas Ocean), and LNG import/regasification (Shahzad LNG).

Differentiator

Problem solved

Functional benefit

Products and services

• Oil and Gas Exploration Services Exploration services including geological surveys, seismic data acquisition (2D/3D), exploratory drilling and prospect evaluation across onshore and offshore blocks in Pakistan and Morocco, conducted on PEL's owned and joint-venture acreage.
• Ayesha Gas Complex Major gas-condensate producing asset in the Badin South Concession of Sindh province producing high BTU natural gas and condensate; developed across the Ayesha, Aminah, Ayesha North and Zainab fields and supplying gas to government-nominated buyer SSGCL.
• Kandra Gas Field Development & Production lease in Sindh producing low BTU gas for power generation, with recoverable reserves of 2.86 TCF in the Sui Main Limestone and additional potential in the Chiltan Limestone; gas from this field supplies the Kandra Power Company power project.
• Badar Gas Field and Mining Lease Mining lease in Sindh with recoverable reserves of 124 BCF in the Sui Main Limestone; the Badar-1 well has been producing since 2006 (69.76 BCF cumulative through April 2021) and Badar-2 at 5.5 MMSCFD, with gas delivered after on-site processing.
• Block-22 Hassan D&P Lease Development & Production lease covering the Hassan, Sadiq and Khanpur blocks across Shikarpur, Sukkur, Kashmor and Jacobabad districts of Sindh, with a ~42.5 km gas collection network injecting gas into the SNGPL national grid; incremental gas pricing notified by OGRA on February 23, 2016.
• Block J Offshore Exploration Offshore Indus exploration license in which PEL has acquired 936 lkm of 2D and 550 sq.km of 3D seismic data and mapped two prospects with reserve exposure exceeding 22 TCF of gas.
• Haha Onshore – Essaouira Basin (Morocco)

Quantifiable outcome

• Four gas discoveries adding 65 MMCFD to national grid
• +3 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

14 partnerships are on record, tiered core, secondary, minor and former - assets acquired.

• OGDCL (Oil and Gas Development Company Limited)coreStrategic or Co-development PartnerNational oil company and key joint venture partner in multiple PEL exploration blocks and production leases across Pakistan, including Badin IV South Block where production commenced in 2020.
• PPL (Pakistan Petroleum Limited)coreStrategic or Co-development PartnerNational oil company operating as joint venture partner in various PEL-operated blocks, bringing extensive E&P experience from Pakistan's oldest producing fields.
• GHPL (Government Holdings Private Limited)coreStrategic or Co-development PartnerGovernment holding company participating as joint venture partner ensuring state interest in PEL's exploration and production activities across domestic acreage.
• ONHYM (Office National des Hydrocarbures et des Mines)coreStrategic or Co-development PartnerMoroccan state-owned oil and gas company, joint venture partner for PEL's three exploration blocks in Morocco including Haha Onshore Essaouira Basin permit. First Pakistani E&P company to operate in Morocco.
• GPXPsecondaryStrategic or Co-development PartnerJoint venture partner in select PEL exploration blocks.
• ForpatrosecondaryStrategic or Co-development PartnerJoint venture partner in Morocco operations alongside ONHYM.
• Jura EnergysecondaryStrategic or Co-development PartnerJoint venture partner in certain exploration blocks.
• OGILsecondaryStrategic or Co-development PartnerJoint venture partner in select PEL-operated blocks.
• Spud EnergyminorStrategic or Co-development PartnerPartner in certain exploration activities.
• Pyramid EnergyminorStrategic or Co-development PartnerJoint venture partner in select blocks.
• Prontier Holdings/Frontier HoldingsminorStrategic or Co-development PartnerJoint venture partner in select PEL blocks.
• KUFPEC Pakistan (Kuwait Foreign Petroleum Exploration Company)former - assets acquiredOthersPEL acquired KUFPEC's Pakistan assets including Dadu, Kirthar, Tajjal, and Qadirpur Concessions with Bhit and Qadirpur Leases through Sale and Purchase Agreements with KUFPEC subsidiaries. This strategic acquisition expanded PEL's exploration portfolio significantly.
• SSGCL (Sui Southern Gas Company Limited)coreOthersGovernment-nominated buyer for gas and condensate from PEL's production assets. SSGCL receives gas from Ayesha Gas Complex, Badar Gas Field, and other PEL-operated production facilities, with first gas delivery from Badin IV South on February 5, 2020.
• SNGPL (Sui Northern Gas Pipelines Limited)secondaryOthersGovernment gas utility receiving gas from Block-22 fields through national grid injection from PEL-operated facilities.

Scale indicators11 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Pakistan Petroleum Limited (PPL): PPL is one of Pakistan's largest exploration and production companies and an existing PEL joint venture partner. It operates multiple onshore and offshore blocks with gas and condensate production sold to the same SSGCL/SNGPL utilities, making it a directly comparable upstream operator in the same basins.
• Saif Energy Limited: Saif Energy is a private Pakistani E&P operator with producing gas assets supplying government utilities. PEL's senior advisor Shahid Ahmed previously served as VP E&P at Saif, and the companies share customer base, regulatory framework, and Lower Indus Basin operating geography.
• Oil and Gas Development Company Limited (OGDCL): OGDCL is Pakistan's largest national E&P company and a core PEL JV partner across multiple blocks including Badin IV South. It produces gas, oil, and condensate from Lower Indus Basin fields under the same OGRA pricing regime, making it the most directly comparable Pakistani peer in scale and operating model.
• Dewan Petroleum (Pvt.) Limited: Dewan Petroleum is a private Pakistani upstream operator holding exploration and production acreage, with PEL's geophysics manager Muhammad Maas Siddiqui having previously served as GM Exploration there. It is a similarly structured private-sector Pakistani E&P competing for the same concessions.
• Pakistan Oilfields Limited (POL): POL is a listed Pakistani E&P company producing crude oil, natural gas, and LPG from Potwar and other basins. It sells output to similar government-nominated offtakers and operates under comparable OGRA-regulated pricing, making it a close functional and structural peer to PEL.
• Mari Petroleum Company Limited (MPCL): Mari Petroleum operates the Mari gas field and other E&P assets in Pakistan and supplies gas to government utilities. Several PEL senior managers previously worked at MPCL, and the companies operate overlapping upstream assets under similar government policy frameworks.
• Jura Energy Corporation: Jura Energy is a smaller Canadian-listed E&P company with producing and exploration assets in Pakistan, including Badin IV South where it is also a PEL JV partner. It offers a directly comparable small-cap Pakistani upstream operator model with similar offtake dynamics.

Broad incumbents

• KUFPEC (Kuwait Foreign Petroleum Exploration Company): KUFPEC is the international upstream arm of Kuwait Petroleum Corporation and a former PEL counterparty whose Pakistan assets PEL acquired. As a state-affiliated international E&P with portfolio overlap in Pakistan, it is a relevant comparable for evaluating PEL's expanded post-acquisition scale.
• MOL Pakistan: MOL Pakistan is the local subsidiary of Hungary's MOL Group operating the Tal Block and other Pakistani upstream assets. It is an IOC-affiliated E&P operator in the same basins as PEL, with comparable production and offtake arrangements but with the backing of a larger international parent.
• Eni Pakistan (Eni S.p.A.): Eni operates major gas fields in Pakistan including the Bhit and Badhra fields, selling into the same national gas grid under similar long-term offtake arrangements. As a major IOC with Pakistani upstream exposure, it is a relevant broad incumbent comparable for PEL's scale and customer profile.

Market position

Strengths1 record

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/petroleumexplorationltd

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Petroleum Exploration