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Pakistan Crisis Puts Oil And Gas Projects At Risk

2 January 2008

Major oil and gas projects in Pakistan could be at risk in the wake of the assassination of former Prime Minister Benazir Bhutto last week, according to analysts.

Violence sparked by the assassination of Benazir Bhutto will hold up or halt plans to build the trans-Afghanistan pipeline and the Iran-Pakistan-India natural gas pipeline, according to local reports.

Foreign companies such as Tullow Oil, Premier Oil, Royal Dutch Shell and Total SA are reportedly among majors vying to invest in a multibillion dollar liquefied natural gas project in Karach, writes Dow Jones.

Speaking to the news organisation, analysts in India say the assassination has put a "question mark on Pakistan's future" with investors watching closely to see whether Pakistan can overcome the current crisis.

Pakistan is short of natural gas and vital supply infrastructure and faces estimated deficits of 2,100 million standard cubic feet of natural gas per day by 2015.

Pakistan announced today it is to postpone national elections until mid-February due to the violence sparked by the assassination, despite objections from the two main opposition parties.

By staff writer