ISLAMABAD: Foreign exploration and production companies have invested about $2.02 billion for oil and gas exploration in the country during last three years.
The government has launched an investor friendly Petroleum Policy 2012 to attract further foreign investment to cope with the demand of oil and gas.
Incentives offered in this regard include better gas price, windfall levy reduced from 5 percent to 40 percent, base price for crude oil and condensate increased from $30/barrel to $40/barrel, official sources told APP on Wednesday.
"Ceiling of $100/barrel is replaced with $110/barrel, while renewal of lease will also be ensured, after expiry of lease term for another five years subject to payment of amount of 15 percent of the well head value".
He said sale of 90 percent share of pipeline specification gas to the government and 10 percent by E&P companies to any buyer with prior consent of the government was another step to encourage foreign investment.
The official said a bonanza of $1/MMBTU would be given for first three discoveries in offshore area.
The Policy 2012 gas price will also be extended to the lease for additional 10% production over and above the commitment of development plan approved by the government, he added.
For the purpose of pricing and delivery obligations for natural gas, he said, the gas would be delivered at outlet flange (Field Gate/ Delivery Point).
While for offshore, the gas will be delivered at the nearest access point to an existing regulated transmission system or at the shore within coastal locations, he added.
Award process for 50 new exploration blocks is being finalized in consultation with the provinces, he said.
In order to exploit shale gas reserves of the country, he said the USAID was providing technical assistance to Ministry of Petroleum and Natural Resources via appointment of experts in the Shale Gas policy formulation and technology support for exploitation of unconventional gas resources.
Approval to commence project has been granted in October 2013 and it will take nine months to complete, he added.
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