173 oil, gas wells, 47 other discoveries made in two years

The present government has taken various has taken various measures to create an investment friendly environment in the Exploration and Production (E&P) Sector to attract investment.

So far, 173 wells have been spud, 47 discoveries, and 17 leases granted during the tenure of this government, official sources in the Ministry of Petroleum and Natural Resources said.

The grant of 46 new blocks during the tenure of the current government has increased the area under exploration from 269,152 Sq km to 363,639 Sq km (35 per cent increase), which is now about 44 per cent of the total sedimentary area.

Moreover, around 32,000 bbl of oil production per day has been added and over 500 MMCFD additional gas has also been injected in the gas network system.

Pakistan domestic oil production touched its highest level on December 7, 2014 – 100,698 barrels per day.

The aforesaid performance is the result of effective monitoring of E&P activities in accordance with the work commitments.

Various steps are also being taken to improve the regulatory oversight and procedures have been developed to streamline and facilitate the regulatory approvals.

The government is also taking punitive actions against companies not performing in accordance with their commitments in exploratory efforts and other obligations.

The government is also exploring various options, including award of exploration blocks on strategic partnership basis, which may open a window for foreign companies to invest in the E & P Sector.

According to the sources, the government of Kuwait has taken keen interest in the upstream petroleum sector and intends to invest more in the exploration of oil and gas in Pakistan.

It had recently requested for award of exploration blocks on strategic partnership basis and Kirthar Pakistan B.V., a subsidiary of Kuwait Petroleum Corporation (a wholly owned company of the Government of Kuwait) had applied for acquiring Petroleum Rights in Paharpur Block on Government to Government basis.

An MoU was signed between the Government of Pakistan, Kuwait Petroleum Corporation, and Kirthar Pakistan B.V. Simultaneously, the Government executed Petroleum Concession Agreements (PCA) and Exploration Licence (EL) over Block No 3170-5 (Paharpur) with Kirthar Pakistan BV on March 13.

The Paharpur block is located in D.I Khan and Tank districts of Khyber Pakhtunkhwa with a small part in Bhakkar district of Punjab.

The total area of the block is 2260.79 Sq. Km and minimum firm work commitment is US$ 9.5 Million including drilling of two exploratory wells.

Apart from minimum work commitment, the company is obligated to spend a minimum of US $ 30,000 per year in the block on social welfare schemes.

The company has been active in Pakistan since 1987with over US$ 1 billion in investments and currently holding working interests in Qadirpur, Zamzama, Kadanwari, Bhit, Badhra, Sukhpur and Bolan Blocks, and is ranked 3rd largest producer of gas amongst foreign E & P Companies working  in Pakistan. KUFPEC is also Operator of the Jati Exploration Block in Province of Sindh.