The government of Pakistan, in order to meet the energy shortfall in the country and fulfil future energy requirements formulated a new Petroleum Policy, 2012, wherein more liberal fiscal incentives were offered. Besides this, the government also introduced Tight Gas Policy, Low BTU Gas Policy, Marginal/Stranded Gas Pricing Guidelines and Shale Gas Framework for three pilot projects.
In order to alleviate the shortage of hydrocarbons and to meet the future requirements of the country, Advisor to the prime minister on Petroleum & Natural Resources Dr Asim Hussain said the Ministry of Petroleum & Natural Resources should play a dynamic and proactive role to meet new challenges. Following his directives, the Directorate General of Petroleum Concessions, after a lapse of almost three and half years, offered 58 blocks for grant of exploration licences. The bids for these blocks were opened on 10th March (yesterday), in the presence of representatives of the provinces, exploration and production (E&P) companies and officials of DGPC/Ministry of Petroleum & Natural Resources. Dr Asim also said the execution of new exploration licences and ‘petroleum concession agreements’ form an integral part of the government’s drive to attract investment in the oil & gas sector, therefore, maximum number of exploration licenses ought to be executed with multinational, public sector and local E&P companies to achieve the country’s energy goals in the shortest span of time.
Following advertisements published in leading newspapers calling for bids, the government received 66 applications for 50, out of the 58, blocks offered for bidding through open and transparent competitive bids. As a result of bidding, E&P companies have committed to invest a minimum financial expenditure of more than $ 372 million (Rs 37 billion).
