ExxonMobil likely to come back for offshore venture

As Pakistan is celebrating US President Donald Trump's announcement of joint development of Pakistan's oil reserves, Washington has not signalled whether its energy giant ExxonMobil will make a comeback to participate in bidding for offshore oil and gas fields.

Though Pakistan and the US have a long history of relationship, American oil and gas companies have not remained very active here. Pakistan's two provinces – Khyber-Pakhtunkhwa and Balochistan— are rich in oil and gas deposits, however, security challenges have hindered progress on potential projects.

Distrust between Pakistan and the US still prevails as conspiracy theories suggest that offshore fields in Karachi seawaters have significant hydrocarbon reserves.

Many people believe that Pakistan did not allow ExxonMobil to go further beyond in sea for offshore exploration during the tenure of Pakistan Tehreek-e-Insaf (PTI) government. Reports indicate that the US company sought access to an additional area in Kekra field to assess prospects of finding oil and gas but Pakistan expressed hesitation.

Now, the US president has struck a new agreement for oil and gas field development in Pakistan. It comes at a time when Islamabad is inviting foreign companies to submit bids for offshore fields, which will open on September 30.

Background discussions with officials revealed that the US had scores of private energy companies, but there were no signals which one would take part in field development. Pakistan expects ExxonMobil to come back for a new offshore exploration venture.

However, Pakistani officials point out that Trump's announcement is just a commitment that US energy companies will come to Pakistan. "It will be clear in the coming days when the two countries will start official-level talks by including energy companies to look for opportunities of joint ventures," remarked an official.

This is encouraging news as the US has been inclined towards India in the past. Even Indian oil and gas companies had formed joint ventures with US firms.

Earlier, Washington even refused to export liquefied natural gas (LNG) to Pakistan and showed interest in dealing with Delhi. At that time, a US embassy official told media that Indian companies had entered into joint ventures with US firms; therefore, the doors for LNG trade were open for India, not Pakistan.

Of late, the US president has hinted at American companies' investment in Pakistan's mineral sector. US Exim Bank is one of the financiers interested in pumping capital into the Reko Diq copper and gold mining project.

US companies are also keen to forge joint ventures with Pakistani firms in the mineral sector, which has estimated potential worth $8 trillion. Experts call it a new opening in bilateral relationship between Pakistan and US that will clear the way for notable investment.