Turkey, Azerbaijan: PD officials laud policy reforms aimed at attracting investment

ISLAMABAD: The government’s policy reforms and administrative actions have not only attracted investment from state-owned oil and gas companies in Turkey and Azerbaijan, but have also been instrumental in settling outstanding invoices and halting the growth of the circular debt within the domestic gas sector, petroleum division officials said.

Turkish Petroleum (TPAO) will spearhead seismic and drilling operations in the Indus Block C, working in partnership with Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Mari Energies Limited (MEL). Agreements for both onshore and offshore blocks have been signed, and TPAO is establishing its office in Pakistan with a resident team of 15 to 20 members. Turkish mining companies also interested in joint ventures and technical collaborations.

Azerbaijan’s state owed company SOCAR’s technical team will be visiting Pakistan this month for weeklong meetings at the OGDC to evaluate opportunities in upstream petroleum sector of Pakistan. Technical sessions will cover onshore and offshore opportunities in exploration licences, leases and international collaboration.

The entities like the FWO, OGDCL, and SOCAR are involved in Pakistan’s energy sector projects, specifically in the development of the Machike-Thallian-Tarujabba White Oil Pipeline (MTT-WOP), which will be inaugurated, soon.

The OGDC is moving on fast track for the Shale Pilot Project. Schlumberger and Baker Hughes engaged for technical and technological assistance. Pilot programme designed to establish technical and commercial viability of shale in Pakistan. Horizontal fracking is to commence in early 2026.

The OGDC settlement of invoices significantly improved due to policy and administrative interventions by the government. Petroleum Division took measures for timely payments by Sui Company. Circular debt accumulation effectively contained. The OGDC is receiving interest payment for Term Finance Certificates as per schedule. Principal amount has already been received.

The Reko Diq project development is proceeding as per schedule. Project financing secured in accordance with project development concept, i.e., 50 percent equity and 50 percent project finance. The Reko Diq financing is going to be highest ever financing for a mining project. International financial institutions reposed full confidence in the project and the ability of the state owned enterprises as the shareholders for the multi- billion-dollar project. Project consists of two phases with room for significant extension in due course. Pakistan side has to receive USD 1.5-2 billion annually once fully operational.

Copyright Business Recorder, 2025