New petroleum policy to be implemented in July: Jadoon

Minister for Petroleum and Natural Resources Amanullah Khan Jadoon said on Monday new petroleum policy has been finalised and will be sent to the Federal Cabinet in next few days for approval for its implementation from July next.
"The suggestions and written comments of all the stakeholders were taken into consideration and the draft of new policy will be sent to the Federal Cabinet for the approval in next few days," he said in an interview.
The suggestions and recommendations of representatives of national and international, public and private sector oil and gas companies, owners, developers and operators of licenses as well as potential investors, financial institutions and consortia, were considered before preparing draft of the policy.
He said the next bidding for awarding exploratory licenses would be held after the approval of the new policy. Responding to a query, he said under the new policy, the operators will be allowed to shift from old policy to new policy, but the interest of the consumers will be protected at all costs.
The Minister said the government will ensure supply of energy to meet the growing energy demand by increasing its indigenous oil and gas production and also mobilising its other resources including hydropower, coal reserves and expanding nuclear energy.
He said about 80 percent of crude oil and other petroleum products are being imported to meet the demand of our growing economy. However, owing to government policies and efforts of petroleum experts, there was a sizeable increase in oil and gas production in the country, he added.
Amanullah Jadoon said in wake of increasing domestic energy needs, the government is making efforts to import gas through pipeline from Iran and electricity from Tajikistan. "We need to make adequate energy available to sustain the current economic growth rate," he added.
Talking about main objectives of the new policy, he said it would ensure competitiveness and production through a transparent mechanism. He assured that views of the stakeholders will be taken into account and their legitimate concerns will be addressed.
"Top priority is being accorded to promote the oil and gas sector on modern lines aimed at to meet the growing energy needs of the country for sustaining rapid economic growth of over 7percent per annum," he added. He said owing to all out efforts the gas production has been enhanced from 2 billion cubic feet per year to 4 billion cubic feet per year.
Commenting on the draft of new policy, the transparent criterion has been laid down by government for awarding petroleum concessions through accelerate bidding process.
He said that attractive package of incentives would be offered to the investors in level playing field, adding "More incentives will be offered in the new policy to the prospective investors in the oil and gas exploration and production sectors."
The government, he said, intends to promote upstream oil and gas sector activities to enhance oil and gas production for meeting emerging energy needs of country by encouraging the foreign and local investment. For this purpose, the Ministry has drafted the new policy package to provide incentives to the investors and operators.
"To make the new policy more open, transparent and competitive, an international consultant has been hired to help prepare the draft of the policy," he added. He said a pre-qualification mechanism is being devised providing equal chance to quality players and new comers.