The Petroleum Policy 2011 recommends reduction in the appraisal period from two years to one year, exploratory period from nine years to six years and puts in place a better and efficient mechanism for the prices of the discovered gas and oil.
Petroleum Minister Dr Asim Hussain briefed Prime Minister Syed Yusuf Raza Gilani on Tuesday on the upcoming petroleum policy that also seeks allowing petroleum and gas companies to sell 10 per cent of their products directly to consumers. The approval of the policy will be taken at the next federal cabinet meeting.
An official source said the reduction in the appraisal period would expedite oil and gas exploration in the country. The government also plans to hold bidding for petroleum concessions during the next few weeks after implementation of the policy. He said the direct sale of products would be a major incentive for the power sector to sign long term agreements for gas supplies for power generation.
The minister also briefed the PM on the proposal to provide free cylinders and stoves to the poor, which could be refilled through the Benazir Income Support Programme cards. PM directed that the interest of the poor must be protected at all cost.
The prime minister was also informed that work on Liquefied Natural Gas (LNG) was expedited and the LNG terminal would be completed by the third quarter of next year. The minister also briefed on the proposal that laying of a dedicated pipeline between Karachi and Lahore for LNG transmission was under contemplation.
The minister also apprised the PM about the Iran Pakistan India (IPI) gas pipeline, adding the survey of laying the pipeline in Pakistan was completed and financial advisors would be soon appointed to undertake responsibilities pertaining to financial aspects of the project. The work on laying the pipeline in Pakistan is expected to start in due course. Iranian officials were affirmative that they would complete their part of pipeline by the middle of next year.
