Centre, K-P review security of E&P activities

Observe secure operating environment can help expand oil, gas exploration

ISLAMABAD:

A meeting was held between Federal Minister for Petroleum Ali Pervaiz Malik and Khyber-Pakhtunkhwa Minister for Energy and Power Nazir Ahmed Abbasi on Thursday to discuss strategic energy issues, oil and gas supply, security of exploration and production activities, and the energy challenges faced by the province.

Ali Pervaiz Malik spoke about the prevailing oil supply situation and volatility in international markets. He highlighted the pressure being faced by the domestic energy sector due to developments in international markets and reiterated the federal government's commitment to ensuring stable and uninterrupted energy supplies. He highlighted that the federal government, in coordination with the security forces, was working on a comprehensive plan to ensure the security of exploration and production (E&P) activities in K-P. He emphasised that a secure operating environment was essential for sustaining and expanding exploration activities in the province.

K-P Minister Nazir Ahmed Abbasi acknowledged that the security issue needed to be addressed to facilitate E&P operations and assured full support and cooperation from the provincial government. Both sides agreed that enhanced coordination among the federal government, security forces and the provincial government would be important for creating a secure environment for E&P activities.

They agreed that enhanced E&P activities in K-P would not only strengthen Pakistan's domestic energy security but also increase royalty revenue for the province. The K-P minister highlighted that the success ratio of wells in the province was higher than the global average, underscoring the significant potential for further exploration and investment.

Discussing the gas challenges faced by K-P, the federal minister explained that the ongoing war and resulting disruptions in international energy markets were placing pressure on gas supplies. He stated that once the situation improved, the supply and distribution arrangements could be reassessed in light of the prevailing circumstances. The K-P minister proposed that the provincial government establish an LPG company to cater to the energy needs of people living in hilly and remote areas, by utilising 10% of the LPG quota provided under the LPG policy for such areas.

Officials from the Petroleum Division briefed the meeting on the LPG being allocated to the hilly and forest areas and said that specific details regarding supply would be shared with the K-P government.