Ancient technology hinders Russia’s entry into oil and gas sector

A Russian delegation was due in January but the visit could not take place due to OGDCL’s reservations.

ISLAMABAD: The Russian dream of making large-scale investment in Pakistan’s oil and gas industry has not materialised so far due to its inability to meet the requirements of the Oil and Gas Development Company (OGDCL), an official told The Express Tribune.

The Russians were over-enthusiastic in joining the OGDCL in energy and power development projects but the company did not find their offer worth considering mainly because of outdated technology they were bringing, he added.

“The Russians are welcome to join us in oil and gas exploration,” said OGDCL Director General Naeem Malik. However, he made it clear that the Russians will have to bring latest and modern technology for exploration if they were interested in joining the OGDCL.

“I don’t think that they can do a lot for us or for themselves with the 1961 technology,” remarked Malik.

A delegation of Russian experts of the oil and gas industry, headed by a senior official, was due to visit Islamabad in January this year to negotiate cooperation between the two countries in oil and gas exploration with a view to developing a time-bound roadmap for cooperation in projects. But the visit could not materialise due to OGDCL’s reservations over the Russian technology on offer, a source revealed.

However, Gazprom, a major Russian petroleum company, and its subsidiaries are expected to participate in Pakistan-Iran gas pipeline venture as well as Turkmenistan-Afghanistan-Pakistan and India gas pipeline project. Pakistan and Russia had signed a memorandum of understanding on cooperation in oil and gas sector on November 19, 2010 in Moscow. Both the countries agreed to pursue joint projects and cooperation in the oil and gas sector.

Published in The Express Tribune, February 3^rd, 2011.