PPL to revalidate oil, gas exploration investment in Iraq

The Economic Coordination Committee (ECC) on Wednesday allowed Pakistan Petroleum Limited (PPL) to revalidate the feasibility of investment for oil and gas exploration activities in Iraq.

The petroleum division had sought the approval of the summary for the revalidation of the ECC approval for exploration of oil and gas activities in Block-8 Iraq by PPL. The ECC approved the proposal to revalidate the investment in oil and gas exploration in Iraq.

The government of Pakistan had allowed PPL to carry out the committed oil and gas exploration with a minimum financial obligation of US$100 million in 2012.

Out of the total, PPL had already invested US$77.6 million for oil and gas exploration. The ECC allowed the revalidation and directed the PPL Board to revalidate the feasibility of investment. After revalidation, PPL will resume the operation of oil and gas in Iraq.

Federal Minister for Finance and Revenue, Shaukat Tarin, chaired the ECC meeting.

The ECC also granted approval to the proposal of the Ministry of Energy (Petroleum Division) to re-open the Kohat Oil Depot under the Inland Freight Equalization Margin (IFEM) mechanism. It will also add around 2000 kiloliters to the country’s storage capacity.

The economic decision-making body of the cabinet also accorded approval to the proposal of the Ministry of Maritime Affairs to appoint Foreign Engineering Consultant for planning, preparing, reviewing, and Updating of Port Master Plan of Port Qasim Authority, Karachi. It also directed that the board would decide all matters relating to the fund’s authority is using after following the standard procedures for ensuring efficient progress.

The Ministry of Overseas Pakistanis and Human Resource Development requested the approve grant for pension support worth Rs. 4.52 billion.

The ECC decided to meet the expenditure from its own resources as EOBI is a self-financing organization. It also directed the Board of trustees of EOBI to look into other possibilities of meeting the pension liabilities.

It also approved the Rs. 873.320 million for the Ministry of Defence to meet the expenses of its various Executive Departments. It further accorded approval to Rs.1.5 billion supplementary grant for the Finance Division to provide food subsidy of the Government of AJ&K.