United Energy Group holds the Q3 2018 meeting on the Pakistan project
On October 30, 2018, United Energy Group (UEG, the “Group”) held the Q3 2018 meeting on the Pakistan project at the headquarters in Beijing. This meeting was for reporting and summarizing the operation of the Pakistan project in the first three quarters, and making arrangement for and looking ahead to the work plan of 2019 as well as the medium-long-term planning and deployment of the Group. The meeting was attended by senior executives of UEG, including Zhang Hongwei, Chairman of Board of Directors, Rachel Zhang, Executive Director, Meng Muyao, Expert Consultant to the Chairman, Zhu Junfeng, Chief Executive Officer, and some other management team members from Beijing and Pakistan, some members of expert group and some technical personnel of the group.
In the meeting, the business operation in the first three quarters of 2018 was summarized.
Health, Safety and Environmental protection (HSE) Safety remains top priority of UEG. During the first three quarters, the Pakistan project delivered good performance in terms of overall safety. There was no fatality case, DAFWC and recordable injury frequency and other indicators were all lower than the KPIs target. But we should continue to focus on injury prevention as well as continue to press on better safety management by our contractors.
Production and Reserve Despite challenges, the Pakistani team has resorted to exploration and other measures to increase production and ensure that the annual target will be met. To optimize asset structure and lower risks, the Pakistani team has started relevant work in newly acquired blocks. It will proactively pursue new blocks to guarantee a stable and sound reserve replacement ratio.
Exploration and Development During the first three quarters of 2018, a number of exploration achievements were made in the Pakistani project, including the first exploratory well in the newly acquired block. The Pakistan team has also made the first oil discovery in Digri concession, which is an important finding of milestone significance.
The Beijing expert team recognized the performance of the Pakistan project in the first three quarters of 2018: despite multiple challenges, the Pakistan team and Beijing team have actively made coordination and organization efforts to push forward various work, as an outcome of which, the overall operation performance of Pakistan project was on track as of the 3rd quarter of 2018.
Zhang Hongwei, Chairman of Board of Directors of UEG, commented, this meeting is convened very timely, since UEG acquired the Pakistan project in 2011, in the past 8 years, thanks to the joint efforts from teams in both Beijing and Pakistan, the Pakistan project has made remarkable achievements, congratulations! At present, UEG has come to a new phase, transiting from single asset management to comprehensive management involving multiple asset business packages, from operating a single project in one country to simultaneously operating several projects in several countries. This transition will no doubt bring huge challenges to our management work. Against this background, Beijing team and Pakistan team should more than ever closely collaborate with each other to meet new challenges posed by new opportunities together. In respect to the Pakistan project’s future development plan, the target of achieving an annual production of 10 million tons within 5 years remains unchanged. The management team of the Pakistani project should resort to every effort to deeply explore existing blocks, speed up to explore new assets, expand cooperation with PPL, actively pursue new opportunities in other bidding blocks and new M&A opportunities to form a 5-year development plan.
Chairman Zhang said that, facing the new starting point, new opportunities and new challenges, UEG people should set new target, establish new mechanism, build new platform, closely collaborate with each other and conduct systematic optimization and integration of resources and organization structure.
Zhu Junfeng, Chief Executive Officer, said that the management will firmly carry out all directions and instructions made by Chairman Zhang, and will carefully study and research the suggestions and requirements made by the expert team. The management will continue to work hard in the fourth quarter of 2018 in an effort to successfully meet the annual production and operation target; further optimize next year’s work plan and maintain a stable and sustainable development of the Pakistan business; and will consider Chairman Zhang’s instructions and the expert team’s advices to further improve UEG’s medium-long-term planning and deployment.