ISLAMABAD: The petroleum policy of Pakistan still offers incentives to foreign oil and gas firms despite a plunge in crude prices as the cost of service, technology and manpower has come down, said Petroleum Institute of Pakistan (PIP) Chief Executive Officer Asim Murtaza.
Speaking at a press conference on Monday, he said Pakistan had the opportunity to take advantage of international recession in oil and gas markets as service costs and other exploration-related costs had significantly dropped.
Pakistan’s future when, and if, oil prices increase
“Moreover, Pakistan’s current petroleum policy presents a number of incentives to the exploration and production (E&P) companies operating in the upstream and downstream sectors.”
Murtaza pointed out that as a result of the weak international oil and gas prices, the E&P companies operating in many parts of the world were reducing their costs by adopting different means. This, he said, provided Pakistan an opportunity to attract these companies to undertake new E&P activities as the Petroleum Policy 2012 extended attractive incentives to them.
“At present, no international E&P company is considering winding up operations in Pakistan as its petroleum policy still offers the best production prices and incentives,” he said in reply to a question.
He said PIP was a representative body of the oil and gas companies and individuals and is organising its flagship Pakistan Oil and Gas Conference on April 20. The theme of this year’s conference is ‘Roadmap for a Sustainable Energy Future’.
“The objective is to provide a valuable platform to local and international stakeholders and policymakers including the government to discuss and analyse the key oil and gas issues and come up with solutions,” he said.
“The Ministry of Petroleum has extended full support to the endeavour of PIP and has attached great importance to this conference,” he added.
Speaking more about the conference, he said it would provide policy guidance and recommendations for increasing activity and investment in the sector, with focus on oil and gas exploration and energy efficiency.
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The conference would also provide a set of recommendations based on long-term energy solutions for securing higher GDP growth and economic development on a sustainable basis.
PIP has membership of 26 major oil and gas companies operating in Pakistan. It is the country representative of international bodies such as the World Petroleum Council and the International Gas Union.
PIP Chairman Shaikh Imranul Haq would present the Pakistan Energy Outlook in the upcoming conference.
Published in The Express Tribune, April 19th, 2016.
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