The government is taking concrete measures to meet the country’s growing energy needs, surging oil production to around 100,000 barrels per day, official sources revealed on Monday.
Sources say that the improved performance is the result of effective monitoring of Petroleum Exploration & Production Companies (E&P) activities in accordance with the work commitments.
The government has so far awarded 46 new petroleum exploration licenses which is a record in the country’s history.
For the first time, the government has fulfilled its commitment and has so far processed 94 applications for conversion to the new Petroleum Policy 2012 through execution of Supplemental Agreements, sources added.
By virtue of new discoveries, so far, over one TCF of gas and 16 million barrels of new oil reserves have been added to the available resources.
Since the government came to power, a record 227 wells have been drilled which resulted in 65 new oil and gas discoveries with around 560 mmcfd of additional gas and 27,000 BOPD of oil injected into the system.
The licenses were awarded after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA).
In order to expedite processing of various cases of E&P companies and to bring more transparency to the system, rules have been amended, economic model and petroleum reserve model and comprehensive SOPs have also been developed, sources said.
They said that the government had also initiated actions against non-performing E&P companies including those who had been holding licenses for a long time without any activity on the ground.
Sources claimed that this action would act as a wakeup call for non-performing E&P companies and would boost exploration and production activities in the country.
As a result of the action, 10 exploration licenses have been revoked after allowing adequate opportunities to the companies to remedy the defaults and after completing the necessary regulatory process.
In addition, 15 notices have also been issued to defaulting companies which are under process as per applicable rules, sources added.
