Concessions, exploratory wells to raise production

Petroleum ministry eager to attract investment in oil and gas sector

ISLAMABAD: In a bid to increase domestic oil and gas production, 200 concession agreements are expected to be signed during the next five years while 300 exploratory wells would be dug.

It is expected that 100,000 barrels of oil and 2,400 million cubic feet (mmcf) of gas would be added to domestic production, attracting an estimated investment of $20 billion, according to official sources in the Ministry of Petroleum and Natural Resources.

Prime Minister Nawaz Sharif has already directed the petroleum ministry to restructure the gas and utility companies and offer attractive incentives for increased international investment.

So far, 44 concession agreements have been signed, with 116 wells dug, 18 leases granted, 33 new discoveries announced, and 16,000 barrels of oil and 638 mmcf of gas added to domestic production.

Sources further stated that the country was working diligently to provide more incentives to foreign and domestic oil and natural gas exploration companies to significantly raise domestic production.

The incentives planned will be in addition to those already provided in the Pakistan Petroleum Policy 2012.

According to the Pakistan Bureau of Statistics, production of petroleum products increased 8.35% during fiscal year 2013-14 compared to the output of the previous year.

On a year-on-year basis, production increased 1.3% in June 2014 compared to the production of June 2013.

Published in The Express Tribune, September 27^th, 2014.

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