Home / Brokerage / Gas wellhead price at higher than USD6/mmbtu for new Fields – Alfalah Securities Limited

Gas wellhead price at higher than USD6/mmbtu for new Fields – Alfalah Securities Limited

Karachi: Ministry of Petroleum and Natural Resources is likely to forward new ‘Exploration and Production Policy’ to the Economic Co-ordination Committee (ECC) wherein the gas wellhead price has been proposed to be fixed at more than USD6/mmbtu for exploration activities in future.

According to Alfalah Securities Limited, the measure would be taken to encourage exploration companies to make investment and work on new fields at fast pace. The wellhead price of gas is USD 2.5/mmbtu that is lower than the drilling cost per mmbtu gas. The higher wellhead price offered to new fields is likely to increase the interest of E&P companies leading to higher exploration activities.

Leave a Reply

Scroll To Top