Islamabad, July 13, 2012 (PPI-OT): Ministry of Petroleum has already promulgated Tight Gas Policy in May 2011 with the objective to accelerate exploration, development and production of gas from existing gas reservoirs that are not being produced due to non-commerciality.
In this regard, MGCL in Zarghun Block, POGC in Kirthur Block (Rahman and Hallel Wells) and OMV in Maino and Sawan Block has discovered tight gas and these companies have submitted third party certification for tight gas reserves. As regards Shale Gas, a policy is under preparation with the active involvement of PPL and Eni. A seminar on shale gas was held in Islamabad in November 2011 under the chairmanship of Secretary Petroleum wherein a Committee comprising of PPL, ENI and OMV was constituted to incentivize shale gas exploration and production.
Under Shale Gas Framework, higher incentives will be offered to the companies to invest in exploration, development and production of shale gas reserves. In light of the input/discussion, Draft Shale Gas Framework has been prepared by the Ministry of Petroleum and Natural Resources and is under consideration and after getting consensus from the provinces it will be sent to the CCI for approval.
Regarding assertion that the Government has approved a new Petroleum (Exploration and Production) Policy in January 2012, it is clarified that New Petroleum Policy 2012 has been approved in principle by the CCI on 09-02-2012 subject to development of consensus on the issues of Zoning, Royalty, Mode of Royalty and Production Bonus. After developing the consensus on these issues the revised Petroleum (Exploration and Production) Policy 2012 has been sent to CCI on 5th April, 2012 for final approval.
With reference to the statement that Pakistan Petroleum has invited fresh bids to auction licenses to explore and develop several blocks in KPK and Sindh with huge shale and tight gas reservoirs. This is not correct. It is clarified that only Directorate General Petroleum Concessions, Ministry of Petroleum and Natural Resources can award licenses for exploration, development and production of hydrocarbons, including shale and tight gas, and not Pakistan Petroleum which itself is an upstream public sector exploration company.
For more information, contact:
Ministry for Petroleum and Natural Resources
Tel: +9251 921 0220 -9206416
Fax: +9251 921 3180