Islamabad, March 21, 2014 (PPI-OT): Oil and gas has been major global commercial energy source for decades and expected to play a leading role in future as well. Historically, Pakistan has been an oil importing country but has been fortunate that till recently most of the energy needs of the country were being met through indigenous gas production.
However, due to depleting trend of major gas fields and rapid increase in demand for natural gas, wide gap between demand and supply has emerged which is bearing negative impact on the economy. In order to bridge the gap, the present Government is giving high priority to develop indigenous hydrocarbon resources to minimize the demand and supply gap.
Due to the untiring efforts of Ministry of Petroleum and Natural Resources and especially by the DGPC and his team and keen interest generated by the investment friendly and attractive policies, since taking over by the current government 78 numbers of wells have been spudded and 20 discoveries have been made so far. On 06.03.2014 the oil production in the country crossed 93,600 bbl per day, which is the highest oil production level achieved so far.
The Ministry of Petroleum and Natural Resources after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), awarded 50 blocks on provisional basis to nine E and P companies on 21.01.2014. Out of which 21 blocks are falling in Balochistan, 15 in Punjab, 6 in Sindh and 8 blocks in Khyber Pakhtunkhwa Province. The Ministry has already signed (28) ELs and PCAs in February, 2014.
The Government of Pakistan on 21st March 2014 executed 15 more Petroleum Concession Agreements (PCAs) and 15 Exploration Licences (ELs) over Blocks No. 2564-2 (Parkini Block-A), 2763-5 (South Kharan), 2764-3 (Palantak), 2564-5 (Rasmalan West), 2865-3 (Kharan-3), 2561-1 (Gwadar), 3169-2 (Zhob), 2566-5 (Bela North), 2764-2 (Rakhshan), 3066-5 (Bostan), 2866-3 (Khuzdar North), 3370-14 (Tirah), 3171-3 (Khiu), 3273-4, 3070-17 (Layyah), and (Warnali) 3273-4 with Oil and Gas Development Company Limited (OGDCL).
Parkini Block-A block is located in Awaran and Kech districts of Balochistan, South Kharan block in Kharan district of Balochistan, Palantak block in Kharan and Panjgur districts of Balochistan, Rasmalan West block in Awaran and Pasni districts of Balochistan, Kharan-3 in Kharan and Nushki districts of Balochistan, Gwadar Gawadar,Pasni and Kech districts of Balochistan, Zhob block in Zhob,Musakhel districts of Balochistan and in Fata, Bela North clock in Khuzdar, Awaran and Lasbela disctricts of Balochistan, Rakhshan block in Kharan district of Balochistan, Bostan block in Ziarat,Pishin,Killa Abdulla and Quetta districts of Balochistan, Khuzdar North block in Khuzdar district of Balochistan, Tirah block in Khyber, Kurram and Orakzai Agencies of Fata, Khiu block in Bhakkar and Khushab districts of Punjab, Layyah block in DG Khan and Muzaffargarh districts of Punjab, Warnali block in Chakwal,Jhelum and Rawalpindi districts of Punjab.
The total area of aforesaid blocks is 32357 Sq. Km and minimum firm work commitment is US $ 39.19 Million. Apart from minimum work commitment, companies are obligated to spend a minimum of US $ 30,000/year in each block on social welfare schemes.
OGDCL is a Public Limited Company engaged in Exploration and Production activities in the country for the last four decades. OGDCL holds the largest share of Oil (58%) and Gas (42%) of the total reserves in the country.
Its percentage share of total Oil and Gas production in Pakistan is 52% and 27%, respectively. In addition, OGDCL is the Operator in 48 exploration licences and working interest owner in 6 other exploration blocks operated by various E and P companies. OGDCL is currently producing 43,896 barrels of Oil, 1163 MMCFD of gas, 84 metric tons of LPG and 96 metric tons of Sulphur per day.
The execution ceremony was graced by Mr. Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources, Mr. Jam Kamal Khan, State Minister for Petroleum and NR and Mr. Zahid Muzaffar, Advisor to Ministry of Petroleum and Natural Resources with their presence.
The respective ELs and PCAs were signed by Mr. Abid Saeed, Secretary Petroleum and Natural Resources, Mr.Saeedullah Shah, Director General Petroleum Concessions, Mr. Riaz Khan, Managing Director, OGDCL and Directors from the provinces of Balochistan and Punjab.
For more information, contact:
Public Relations Officer
Ministry of Petroleum and Natural Resources