Petroleum concession deals, exploration licences signed

ISLAMABAD: Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) over block no Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19) and Zindan-II (3271-9) on Wednesday signed with Oil and Gas Development Company Limited (OGDCL), Multanai (3168-3) with Pakistan Oilfields Limited (POL), Sawan South (2668-26) with United Energy Pakistan Limited (UEP) – a Chinese exploration and production company, Gambat-II (2668-25) with joint venture of Pakistan Petroleum Limited (Operator) and the OGDCL and Saruna West (2666-1) with joint venture of POL (Operator), PPL and the OGDCL.

The signing ceremony was graced by Muhammad Ali, Minister for Power and Petroleum, Dr Muhammad Jahanzaib Khan, Special Assistant to Prime Minister (Governance Effectiveness), DG SIFC, Major General Tabassum Habib, National Coordinator SIFC, Lieutenant General Muhammad Saeed (retired).

The Exploration Licence and PCA were signed by Momin Agha, Secretary Petroleum Division, Kashif Ali, Director General Petroleum Concessions on behalf of the Government of Pakistan, Ahmed Hayat Lak, Managing Director/Chief Executive Officer (CEO), OGDCL, Shuaib A Malik, Chairman/CEO, POL, Sikandar Ali Memon, Chief Operating Officer, PPL and Dr Nadeem Ahmed, Head of Exploration, UEP.

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The Minister for Petroleum, Muhammad Ali, stated that these efforts will bear fruit for the country in the form of additional hydrocarbon reserves during the next few years.

The minister expressed that execution of the Exploration Licences and PCAs will not only enhance investment in the petroleum sector but will also contribute to bridging the energy demand and supply gap.

The minimum investment to be carried out by the Exploration and Production (E&P) companies in these blocks for prospecting will be over USD 33.3 million in three years. For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop the production.

Moreover, companies are obligated to spend a minimum of USD 30,000 per year in each block on social welfare schemes in their respective areas.

Copyright Business Recorder, 2024