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- These companies have signed petroleum concession agreements and exploration licenses for eight blocks
- Minister hopes agreements will enhance investment in petroleum sector, bridge energy demand and supply
KARACHI: Pakistani petroleum exploration and production companies will invest more than $33 million under petroleum concession agreements (PCAs) and exploration licenses (ELs) signed on Wednesday, the Pakistani energy ministry announced.
The PCAs and ELs were signed by Momin Agha, the Petroleum Division secretary, Kashif Ali, director-general of petroleum concessions on behalf of the government, Ahmed Hayat Lak, managing-director and chief executive officer of the Oil & Gas Development Company Limited (OGDCL), Shuaib A. Malik, chairman of the Pakistan Oilfields Limited (POL), Sikandar Ali Memon, chief operating officer of the Pakistan Petroleum Limited (PPL), and Dr. Nadeem Ahmed, head of exploration at United Energy Pakistan (UEP).
The signing ceremony was witnessed by Minister for Power and Petroleum Muhammad Ali, Special Assistant to Prime Minister Dr. Muhammad Jahanzaib Khan and others in Islamabad.
“The minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks for prospecting will be over USD33.3 million in three years,” the Pakistani energy ministry said in a statement.
PCAs and ELs have been signed for eight blocks including Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19) and Zindan-II (3271-9) with Oil & Gas Development Company Limited (OGDCL), Multanai (3168-3) with Pakistan Oilfields Limited (POL), Sawan South (2668-26) with United Energy Pakistan Limited (UEP), Gambat-II (2668-25) with Joint Venture of Pakistan Petroleum Limited (Operator) and OGDCL, and Saruna West (2666-1) with Joint Venture of POL (Operator), PPL and OGDCL.
These companies will make investments to develop production for blocks with discoveries, besides spending a minimum of $30,000 per year on social welfare schemes in each block in their respective areas.
Petroleum Minister Ali said the efforts would bear fruit for the country in the form of additional hydrocarbon reserves during the next few years. He hoped the execution of the ELs and PCAs would not only enhance investment in the petroleum sector, but they would also contribute to bridging the energy demand and supply gap.
The South Asian country is only 16.35 percent self-sufficient in oil production, while it meets the rest of the demand through costly imports.