Pakistan’s oil and gas discoveries touch record

Published: June 29, 2016
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Four fresh reserves were found in Sindh and two in K-P. PHOTO: REUTERS

Four fresh reserves were found in Sindh and two in K-P. PHOTO: REUTERS

ISLAMABAD: Pakistan has made the highest number of oil and gas discoveries in the current month as exploration companies found fresh hydrocarbon deposits in six wells that will add 50.1 million cubic feet per day (mmcfd) of gas and 2,359 barrels per day (bpd) of oil to the existing production levels.

Of these, major discoveries have been made in Sindh that already has a big share in total gas output in the country.

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Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, while speaking during a meeting of the National Assembly Standing Committee on Petroleum and Natural Resources chaired by Bilal Ahmed Virk on Tuesday, said four discoveries were made in Sindh and the remaining two in Khyber-Pakhtunkhwa.

Of these, Oil and Gas Development Company made two finds, MOL Pakistan two and Petroleum Exploration Limited and United Energy Pakistan one each. The discoveries have shown presence of 31.6 mmcfd of gas and 339 bpd of crude oil in Sindh and 18.5 mmcfd of gas and 2,020 bpd of oil in K-P.

Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Amjad Latif warned that the country’s gas reserves were depleting and no gas was available for the domestic consumers in Punjab. He pointed out that the purchasing cost of gas for domestic consumers stood at Rs510 per million British thermal units (mmbtu) but the consumers coming under the first slab were receiving it at Rs110 per mmbtu.

Eighty-five per cent of domestic consumers were paying less than 50% of the cost of gas and the industrial and commercial consumers were cross-subsiding the domestic consumers, he said.

However, now industrial and commercial consumers were being provided imported liquefied natural gas (LNG), so the burden of cross-subsidy had been shifted to SNGPL that was feeling the strain on its finances.

Though the gas production was declining, Latif told the committee that the company would lay pipelines over 8,000 km in the current year. At present, 1.5 million applications for new gas connections are awaiting approval of the company.

The country was facing gas shortages as politicians were using it as a tool to win elections.

During the meeting, National Assembly member Mian Tariq Mehmood, who belonged to the ruling PML-N, alleged that SNGPL had provided 100 gas meters in his constituency to please his political rival Imtiaz Safdar Warraich, though his requests for new meters were turned down repeatedly.

He insisted that the provision of gas meters to his opponent had damaged his political image. NA Standing Committee Chairman Bilal Ahmed Virk accused Director General Petroleum Concession Saeedullah Shah of not responding to the committee for the last two years.

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Describing Shah’s attitude as non-sense, he said he was not cooperating with the committee and sought the record of past meetings to show response of the director general of petroleum concession.

The committee also took up for review the issuance of licences for liquefied petroleum gas (LPG) stations to the defaulters that were previously running CNG stations.

It recommended that rules of Oil and Gas Regulatory Authority (Ogra) should be amended to ensure the clearance of outstanding bills of SNGPL, Water and Power Development Authority and banks before issuing licences for setting up LPG stations.

Published in The Express Tribune, June 29th, 2016.

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Reader Comments (16)

  • faheem
    Jun 29, 2016 - 8:24AM

    pmln only give rights to ther people…..chekout hanif abbasi and shaikh rasheed …hanif abbasi is doing everything in rawalpindi while rashid being mna has no fundsRecommend

  • Parvez
    Jun 29, 2016 - 9:20AM

    …but we still have to buy gas from Qatar because without such deals we would be unable to buy expensive properties like 1 Hyde Park in London. Recommend

  • Faisal Hamid
    Jun 29, 2016 - 10:52AM

    Oh no, what are they doing. That is not the vision and mission of our countries institutions like OGRA, PEMRA, NADRA and so on. If they work against the manifesto of their deeds, the country will become self reliance. When there will be no deals (buying) from international market, how will cut-back be made.

    ############### To be continuedRecommend

  • Hawk
    Jun 29, 2016 - 1:36PM

    How convenient! as soon as the oil prices go down we start to find oil and record high numbers.Recommend

  • Usman
    Jun 29, 2016 - 4:28PM

    These discoveries are already being under reported by foreign companies so they can steal.Recommend

  • hoshiar singh gill
    Jun 29, 2016 - 5:02PM

    Congratulations,hope it will be properly utilised for real benefit of Pakistani people!Recommend

  • hoshiar singh gill
    Jun 29, 2016 - 5:04PM

    congratuations!Recommend

  • kam
    Jun 29, 2016 - 6:05PM

    OIL!!!!!!!!!! now wait for US to bring democracy in Pakistan.Recommend

  • Malik Saab
    Jun 29, 2016 - 8:38PM

    @Parvez: A typical negative comment. These discoveries will add only 50 Million Cubic to the whole system, whereas Our daily needs are more than 1 billion cubic feet. So we need to import anyway. Recommend

  • Pak
    Jun 29, 2016 - 8:40PM

    Now link it the pipelines directed to punjab. Nothing to change at least in KP, as usual will get nothing because they have to respect big brother. KP is already producing more than its requirements and still depriving for energy. This country needs justiceRecommend

  • Sarfaraz
    Jun 29, 2016 - 9:20PM

    So once again Sindh proves to be rich in natural resources, together with KP. Sindh, whereas Punjab is sucking on the natural resources of the rest of the provinces. Recommend

  • Sarfaraz
    Jun 29, 2016 - 9:22PM

    SNGPL Managing Director Amjad Latif warned that the country’s gas reserves were depleting and no gas was available for the domestic consumers in Punjab.

    What can we do if God hasn’t blessed Punjab with rich natural resources? Recommend

  • Tahir
    Jun 29, 2016 - 10:49PM

    It’s good news for pakistanis. But when government will take step for all this.we have all thing as Allah blessings but we don’t have commonsense. Recommend

  • buga
    Jun 29, 2016 - 11:46PM

    When oil companies find actual oil/gas they are the first to announce to increase their share prices … but they are often limited to announcements that are considered “proven”. The govt on the other hand isn’t constrained by restrictions imposed by stock exchanges and they tend to boast about major findings that are “unproved” which basically means that their is insufficient information to determine whether the reserves can be extracted economically. Since this announcement is coming from Petroleum and Natural Resources Minister Shahid Khaqan Abbasi you can guess which type of finding this is. Recommend

  • syed & syed
    Jun 30, 2016 - 4:22AM

    Did any one try off shore drilling. When there is so much shortage and the Government is running after central Asian projects which will pass through Afghanistan why do they not go to Pak Iran Gas pipe line.Recommend

  • aamir
    Jun 30, 2016 - 5:13AM

    There is no link between oil platform and war ship as the discovery is being made at land not sea. Moreover, while article is about Pakistan Oil exploration whereas the war ship is of some unknown third nation. Recommend

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