Pakistan is seeking investments from domestic and international energy and petroleum (E&P) companies in the country’s oil and gas sector, following the country’s new Petroleum Policy 2012 announced in August.
The country’s Ministry of Petroleum and Natural Resources is currently organising the Pakistan Petroleum Exploration Conference, 2012 at Houston, US.
Addressing the key note address, Pakistan’s petroleum and natural resources advisor to the Prime Minister, Asim Hussain, said the new policy provides equal ground for domestic and international companies to invest in the country, in addition to an attractive price regime and incentives.
As per the new policy, the E&P rights will be issued under the Petroleum Concession Agreement for onshore operations and the Production Sharing Agreement for offshore operations.
It offers the exploration companies $9 per MMBTU (Million Metric British Thermal Units) for offshore oil and gas discoveries, and $6.5 per MMBTU for onshore. Further offshore fields will be leased for a period of 25 years, with an option to extend them for another five years.
The new policy, which is the second to be announced with the first released in 2009, was necessitated with the rise in international oil prices.
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The ministry arranged the conference in both Houston, US, and London, UK, with an aim to showcase Pakistan’s policy on the oil and gas sector, especially its decision to invite bids for 60 new concession blocks.
More than 70% of the 800,000km² sedimentary area remains to be explored, giving the companies a discovery rate of 1:3.22, said Hussain.
Pakistan has also formulated its first policy on tight gas and low BTU gas and is likely to announce one on shale gas, flared gas, marginal and stranded oil and gas fields.
Meanwhile, on the sidelines of the conference, the Government of Pakistan has signed an agreement with Eni Pakistan regarding the company’s farm-in farm-out of shares in the Indus-G offshore block; the other parties involved in the agreement were Government Holdings (GHPL), Oil and Gas Development Company (OGDCL), Pakistan Petroleum (PPL) and United Energy of Pakistan (UEP).
Image: Petroleum and Natural Resources advisor to the Prime Minister Asim Hussain addressing the conference. Photo courtesy of Ministry of Petroleum and Natural Resources, Government of Pakistan.