E&P Firms to invest over $33.3m in eight blocks

Staff Report

E&P Firms are set to invest over $33.3m in eight blocks during the next three years.

The Government of Pakistan, on 24th January 2024, at the Prime Minister’s Secretariat in Islamabad, executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs).

These agreements to relate Block No. Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19), and Zindan-II (3271-9) with Oil & Gas Development Company Limited (OGDCL), Multanai (3168-3) with Pakistan Oilfields Limited (POL), Sawan South (2668-26) with United Energy Pakistan Limited (UEP) – a Chinese Exploration & Production Company, Gambat-II (2668-25) with the Joint Venture of Pakistan Petroleum Limited (Operator) and OGDCL, and Saruna West (2666-1) with the Joint Venture of POL (Operator), PPL, and OGDCL.Amid Economic Crisis: Shell Announces to sell petroleum stake

The signing ceremony was graced by Mr Muhammad Ali, Minister for Power and Petroleum, Dr Muhammad Jahanzaib Khan, Special Assistant to the Prime Minister (Governance Effectiveness), DG SIFC, Major General Tabassum Habib (Hilal-e-Imtiaz Military), National Coordinator SIFC, Lieutenant General (R) Muhammad Saeed.

The Exploration Licence and PCA were signed by Mr Momin Agha, Secretary Petroleum Division, Mr Kashif Ali, Director General Petroleum Concessions on behalf of the Government of Pakistan, Mr. Ahmed Hayat Lak, Managing Director/Chief Executive Officer (CEO), OGDCL, Mr Shuaib A. Malik, Chairman/CEO, POL, Mr Sikandar Ali Memon, Chief Operating Officer, PPL, and Dr. Nadeem Ahmed, Head of Exploration, UEP.

Minister for Petroleum Muhammad Ali stated that these efforts will bear fruit for the country in the form of additional hydrocarbon reserves during the next few years.

The Minister expressed that the execution of the Exploration Licences and PCAs will not only enhance investment in the petroleum sector but will also contribute to bridging the energy demand and supply gap.

The minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks for prospecting will be over USD 33.3 million in three years.

For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop production. Moreover, companies are obligated to spend a minimum of US $30,000/year in each block on social welfare schemes in their respective areas.”