Oil exploration licence granted for Sindh block

Kuwait company’s subsidiary will invest $3.3m in phase-I.

ISLAMABAD:

The government has granted exploration licence for a block in district Thatta (Sindh) to Kirthar Pakistan BV – the operator – and Pakistan Petroleum Limited (PPL), which have 75% and 25% working interests respectively.

According to a statement issued here on Friday, the joint venture has committed to undertake work at the site by investing $3.3 million during Phase-l, which is spread over three years. The work programme includes a seismic survey and drilling of two exploration wells.

The exploration licence and petroleum concession agreement were signed by Petroleum and Natural Resources Secretary Dr Waqar Masood Khan, Director General Petroleum Concessions Qazi Mohammad Saleem Siddiqui, Kuwait Foreign Petroleum Exploration Company (Kufpec) Deputy Managing Director A Naser Y AI-Fulaij and PPL CEO and Managing Director Asim Murtaza Khan. Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain was also present.

Kirthar Pakistan is a wholly owned subsidiary of Kufpec, which is active in Africa, Middle East, Far East, Australia and Southeast Asia. The company has been active in Pakistan since the mid-1980s and holds working interests in Qadirpur, Zamzama, Kadanwari, Bhit and Bhadra, Sukhpur and Zarghun blocks.

The licence has been granted on government-to-government basis under the Petroleum Exploration and Production Policy 2009, which will help cope with challenges faced in meeting energy needs.

According to the statement, Asim Hussain has emphasised that new exploration licences and petroleum concession agreements form an integral part of the government’s drive to attract investment in the oil and gas sector. Maximum number of exploration licences might be granted to multinational, public sector and local exploration and production companies, which would help achieve the desired goals and cater to the energy needs of the country, he said.

Published in The Express Tribune, October 13^th, 2012.