Govt issued 35 new exploration licences since taking charge

Resultantly, 39 new discoveries are under evaluation for reserve estimation.

November 15, 2012

ISLAMABAD: Adviser to the Prime Minister on Ministry of Petroleum and Natural Resources Dr Asim Hussain, on Thursday, informed the National Assembly that the government had signed 35 new exploration licences to explore new reserves of natural gas in the country during the past four years.

“Currently, 133 exploration licences for exploration of oil and gas are operating. A total 100 exploratory wells were drilled during reported period for exploration of oil and gas. As a result of these efforts, 39 oil and gas discoveries have been made which are under evaluation for reserve estimation,” said the Hussain while responding to questions.

“Efforts are being made to put these discoveries on production during 2012-2013. During the reported period, gas production had been enhanced from 3,973 million standard cubic feet per day (mmscfd) to 4,200 mmscfd.

Council of Common Interests (CCI) had approved Tight Gas (Exploration and Production) Policy, 2011 which offers 40%-50% higher prices than the price announced in exploration and production,” he added. He said that the government had announced a policy in 2009 to attract exploration companies to invest in tight gas fields.”Tight Gas Reserves are estimated at 24 trillion cubic feet (tcf).

Initially, 100-150 mmcfd will be added depending on its success rate. Petroleum Policy, 2012 had been notified that gave additional incentives to investors for exploration of oil and gas in Pakistan,” he added.

Regarding the compressed natural gas (CNG) issue, Hussain said that the Oil and Gas Regulatory Authority (Ogra) had not issued any instructions regarding closure of operational CNG stations across the country.

Published in The Express Tribune, November 16^th, 2012.