Bidding, exploration companies had committed to invest a minimum financial expenditure of more than $372 million on the 50 of the 58 blocks advertised by the govt. PHOTO: FILE
ISLAMABAD:
The state-run oil and gas explorer Pakistan Petroleum (PPL) expressed serious concerns over the delay in formal grant of the ten blocks which the company had won during the bidding round held on March 10.
The Pakistan Peoples Party-led coalition government had opened offers to 58 blocks just a few days before completion of its five-year constitutional tenure, a decision which was criticised by experts. Energy experts termed the decision of offering blocks in such a large number as a hasty one as they were of the view that the government could get higher bids if the blocks were offered in phases.
PPL had also won ten blocks during the exploration bidding round held on March 10, 2013 at the Director General Petroleum Concession (DGPC) office in Islamabad.
“It is requested that the formal grant of these blocks may please be expedited so that exploration activities may be started at the earliest. Furthermore, for the operational synergy with our ongoing activities, we shall be grateful if the blocks are granted in the order of priority,” PPL said in a letter sent to DGPC on April 22.
The explorer said that that the ongoing two-dimensional (2D) seismic survey at the three Karan blocks operated by PPL was about to be completed and it will be a big advantage if the same crew could then move to the adjoining Nausherwani block.
“This will not only provide operational synergy but also save time and cost. Similar advantage may also be gained in the Karsal block,” PPL said adding “we would like to inform you that we have already started the ground work for execution of the planned exploration work programme to save time and fast-track the work once the blocks are granted.”
PPL further went on to say that project planning and resource allocation was also being undertaken to carry out concurrent activities to meet the work commitment in the given timeframe.
The blocks won by PPL are located in Sindh, Punjab and Balochistan. The company had committed a total of 6,445 work units, which translates into a minimum financial obligation of $64.45 million; though actual investment will be significantly higher on discharging the work commitment, the company had said in a statement after winning blocks.
In order to alleviate the shortage of hydrocarbons and to meet future requirements of the country, the DGPC after a lapse of almost three and half years, offered 58 blocks for grant of exploration licences. The bids for these blocks were opened on March 10.
Following advertisements published in leading newspapers calling for bids, the government received 66 applications for 50 out of the 58 blocks offered for bidding through open and transparent competitive bids. As a result of bidding, exploration companies had committed to invest a minimum financial expenditure of more than $372 million.
Published in The Express Tribune, April 28th, 2013.
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