ISLAMABAD: Ministry of Petroleum and Natural Resources here on Wednesday signed one more Petroleum Concession Agreements (PCA) and Exploration Licence (EL) over block No.3370-15 (Kulachi) with Oil and Gas Development Company Limited (OGDCL).
The block award ceremony was witnessed by Federal Minister for Petroleum and Natural Resource Shahid Khaqan Abbasi, State Minister for Petroleum and Natural Resources Jam Kamal Khan and Advisor to Ministry of Petroleum and Natural Resources Zahid Muzaffar.
The EL and PCA was signed by Secretary Petroleum and Natural Resources Abid Saeed, Director General Petroleum Concessions Saeedullah Shah, Managing Director OGDCL and Director from Khyber Pakhtunkhwa Province on behalf of their respective organizations.
Federal Minister for Petroleum and Natural Resources speaking on the occasion said that the government executed one more PCA and EL over block No. 3370-15 (Kulachi) with OGDCL aiming at improving energy needs.
He said that Kulachi block is located in Dera Ismail Khan district of KPK, Layyah, Dera Ghazi Khan and Bhakkar district of Punjab.
Shahid said that the total area of the block is 2,495 sq. km and minimum firm work commitment is US $ 10.10 million.
He added that the present government is giving high priority to E&P sector to exploit indienous hydrocarbon potential to bridge the gap between demand and supply.
"Due to untiring efforts by the ministry and his team and keen interest generated by the investment friendly and attractive policies, since taking over by the current government 154 numbers of wells have been spudded and 45 discoveries have been made so far," he said.
The Minister said around 500 MMCFD of gas and around 34,000 barrels of oil per day of oil has been added.
The minister said that the oil production in the country has achieved 100,698 bbl per day of oil on 7.12.2014, which is the highest oil production level achieved so far.
The ministry of Petroleum and Natural Resources after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Agreements, awarded 50 blocks on provisional basis to nine E&P companies on 21.01.2014.
Out of which 21 blocks are falling in Balochistan, 15 in Punjab, 6 in Sindh and 7 blocks in KPK province and one in Federally Administered Tribal Areas (FATA). The ministry has already signed 44 ELs and PCAs in short span of time.
Due to grant of 45 new blocks during the tenure of the current government the area under exploration has increased from 269,152 to 362117 sq kms, which is about 44 % of total sedimentary area.
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