PD Fails to Attract Firms to Bid for Exploration Blocks

The Petroleum Division has failed to attract oil and gas companies to bid for onshore blocks to grant petroleum exploration rights to boost indigenous oil and gas production.

The petroleum division had floated bids for 10 onshore blocks and companies participated in only 6 blocks.

Moreover, no foreign company has participated in a bid.

The majority of the companies participating in bids belong to state-run firms.

Under the chairmanship of DGPC, the Bid Opening Committee opened bids for 10 Onshore Blocks for the grant of Petroleum Exploration Rights on November 30, 2023, at Petroleum House, Islamabad. Bids were received for 6 Blocks.

The highest bidder for 2 Blocks is  UEP (100%). POL ( 40% – operator) with JV partners PPL (30%) & OGDCL (30%) in 01 Block, OGDCL (100%) in  02 Blocks, and PPL (70% – operator) with JV partner OGDCL (30%) in  01 Block.OGDCL Completes Khewari Project With Fast Track Strategy

The minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks for prospecting will be over USD 23.25 million in three years.

Apart from E&P activities, the successful companies will also spend over USD 540,000 in social welfare for the areas of their respective Blocks. For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop the production