Islamabad, March 13, 2015 (PPI-OT): Pakistan has a large sedimentary basin covering over 827,268 Sq. Km and spread over both onshore and offshore. Majority of the area has remained unexplored or under explored. The current government has taken various measures to create an investment friendly environment in the Exploration and Production (E and P) Sector to attract investment.
Due to the efforts of the Ministry of Petroleum and Natural Resources, especially by the DGPC and his team, 173 wells have been spud, 47discoveries have been made, and 17 Leases have been granted during the tenure of this government. The grant of 46 new blocks during the tenure of the current Government has increased the area under exploration from 269,152 Sq Kms to 363,639 Sq Kms (35% increase), which is now about 44 % of the total sedimentary area. Moreover, around 32,000 bbl of oil production per day have been added and over 500 MMCFD additional gas has also been injected in the gas network system. Pakistan domestic oil production touched its highest level on 7 Dec, 2014 – 100,698 barrels per day.
The aforesaid performance is the result of effective monitoring of E and P activities in accordance with the work commitments. Various steps are also being taken to improve the regulatory oversight and procedures have been developed to streamline and facilitate the regulatory approvals. The Government is also taking punitive actions against companies not performing in accordance with their commitments in exploratory efforts and other obligations.
The Government is also exploring various options, including award of exploration blocks on strategic partnership basis, which may open a window for foreign companies to invest in the E and P Sector. The Government of Kuwait has taken keen interest in the upstream petroleum sector and intends to invest more in the exploration of oil and gas in Pakistan.
It had recently requested for award of exploration blocks on strategic partnership basis and Kirthar Pakistan B.V., a subsidiary of Kuwait Petroleum Corporation (a wholly owned company of the Government of Kuwait) had applied for acquiring Petroleum Rights in Paharpur Block on Government to Government basis. The Cabinet in its meeting of 23rdFebruary, 2015, approved signing of the MOU between the Ministry of Petroleum and Natural Resources, Government of Pakistan, and its Kuwaiti counterpart over the Paharpur Block.
Subsequently, on 13th March, 2015, an MoU was signed between the Government of Pakistan, Kuwait Petroleum Corporation, and Kirthar Pakistan B.V. Simultaneously, the Government executed Petroleum Concession Agreements (PCA) and Exploration Licence (EL) over Block No. 3170-5 (Paharpur) with Kirthar Pakistan B.V. The Paharpur block is located in D.I Khan and Tank districts of Khyber Pakhtunkhwa with a small part in Bhakkar district of Punjab.
The total area of the block is 2260.79 Sq. Km and minimum firm work commitment is US$ 9.5 Million including drilling of two exploratory wells. Apart from minimum work commitment, the company is obligated to spend a minimum of US $ 30,000 per year in the block on social welfare schemes.
Kuwait Foreign Petroleum Exploration Company (KUFPEC), a subsidiary of Kuwait Petroleum Corporation, is an international oil company engaged in the exploration, development and production of crude oil and natural gas outside the State of Kuwait. It is currently active in 15 countries world-wide with 63 oil and gas projects across Asia, Africa, Australia, Europe and North America; it manages these assets through its Head Office in Kuwait and seven Country Offices in Pakistan, Australia, Norway, Indonesia, Egypt, Tunisia and Canada.
The company has been active in Pakistan since 1987with over US$ 1 billion in investments and currently holding working interests in Qadirpur, Zamzama, Kadanwari, Bhit, Badhra, Sukhpur and Bolan Blocks, and is ranked 3rd largest producer of gas amongst foreign E and P Companies working in Pakistan. KUFPEC is also Operator of the Jati Exploration Block in Province of Sindh.
The ceremony was graced by Mr. Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources. The MoU, EL and PCA were signed by Sheikh Nawaf Saud Nasir Al-Sabah, the Chief Executive Officer of KUFPEC, Mr. Arshad Mirza, Secretary, Ministry of Petroleum and Natural Resources, and Mr. Saeedullah Shah, Director General Petroleum Concessions.
For more information, contact:
Public Relations Officer
Ministry of Petroleum and Natural Resources