ISLAMABAD - The Petroleum Division has not received any bids for 36 per cent onshore exploration blocks because of poor response from the foreign and local private exploration & production (E&P) companies to the bidding process.
Out of 14 onshore blocks offered by Directorate General of Petroleum Concession (DGPC) of Petroleum Division for grant of Petroleum Exploration Rights bids were offered only for nine blocks, confirmed by the Petroleum Division. Even of the bidding offer received for nine blocks, only four have more than one bids, while for the remaining five there is only one bidder, official documents reveals.
One foreign exploration and production company has partially participated in the process through joint venture while the rest of overseas E&P companies abstained from the bidding process, official documents available with The Nation revealed. The foreign E&P company that participated in the process is United Energy Pvt Ltd, a Chinese company. Even the local E&P companies participation was very poor.
No bids were received for five blacks including BLOCK No.2967-6 (SIBI), BLOCK No. 3071-5 (FATEHPUR), BLOCK No. 2871-7 (KHANGARH WEST), BLOCK No.2770-4 (ISLAMGARH) and BLOCK No.2762-2 (DESERT).
For the nine blocks where success bidders have been declared include BLOCK No.2866-5 (KALAT WEST); the bidding winners are Joint Bid of PPL/MPCL (50pc/50pc share) with the offer of 813 Work Units. OGDCL 245 Work Units was on 2nd number. For BLOCK No.2967-5 (MACH) the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 10454 work unit. OGDCL/POL with 781 work units offer was 2nd.
There is poor response from foreign and local private exploration & production companies to bidding process
For BLOCK No.2867-9 (DADHAR) the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 3209 work unit. OGDCL/POL with 937 work units offer was 2nd. For BLOCK No.2969-11 (MEERAN PUR), the successful bidders are the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 210 work unit. OGIL with 153 Work Units offer was 2nd. For BLOCK No.2869-15 (Sui North) the successful bidders are the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 360 work unit; there was no second bidder.
For BLOCK No.2966-2 (CHAH BALI) the successful bidders are the joint bidders OGDCL/POL (respectively with 70pc/30pc shares), who offered and 169.5 units respectively while there was no second bidder for these both blocks.
For BLOCK No.3171-2 (NURPUR) and BLOCK No. 3072-9 (OKARA) OGIL was declared a successful bidder with 100pc shares, who offered 111.5 360 work unit, there was no second bidder. For BLOCK No.3269-3 (WANA) OGDCL was single bidder winner with 236 work unit. According the Petroleum Division, the minimum investment to be carried out by the exploration and production (E&P) companies in these Blocks will be over USD 70.2 million in three years. Apart from E&P activities, the successful companies will also spend over USD 810,000 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.
Out of 14 onshore blocks offered by Directorate General of Petroleum Concession (DGPC) of Petroleum Division for grant of Petroleum Exploration Rights bids were offered only for nine blocks, confirmed by the Petroleum Division. Even of the bidding offer received for nine blocks, only four have more than one bids, while for the remaining five there is only one bidder, official documents reveals.
One foreign exploration and production company has partially participated in the process through joint venture while the rest of overseas E&P companies abstained from the bidding process, official documents available with The Nation revealed. The foreign E&P company that participated in the process is United Energy Pvt Ltd, a Chinese company. Even the local E&P companies participation was very poor.
No bids were received for five blacks including BLOCK No.2967-6 (SIBI), BLOCK No. 3071-5 (FATEHPUR), BLOCK No. 2871-7 (KHANGARH WEST), BLOCK No.2770-4 (ISLAMGARH) and BLOCK No.2762-2 (DESERT).
For the nine blocks where success bidders have been declared include BLOCK No.2866-5 (KALAT WEST); the bidding winners are Joint Bid of PPL/MPCL (50pc/50pc share) with the offer of 813 Work Units. OGDCL 245 Work Units was on 2nd number. For BLOCK No.2967-5 (MACH) the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 10454 work unit. OGDCL/POL with 781 work units offer was 2nd.
There is poor response from foreign and local private exploration & production companies to bidding process
For BLOCK No.2867-9 (DADHAR) the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 3209 work unit. OGDCL/POL with 937 work units offer was 2nd. For BLOCK No.2969-11 (MEERAN PUR), the successful bidders are the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 210 work unit. OGIL with 153 Work Units offer was 2nd. For BLOCK No.2869-15 (Sui North) the successful bidders are the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 360 work unit; there was no second bidder.
For BLOCK No.2966-2 (CHAH BALI) the successful bidders are the joint bidders OGDCL/POL (respectively with 70pc/30pc shares), who offered and 169.5 units respectively while there was no second bidder for these both blocks.
For BLOCK No.3171-2 (NURPUR) and BLOCK No. 3072-9 (OKARA) OGIL was declared a successful bidder with 100pc shares, who offered 111.5 360 work unit, there was no second bidder. For BLOCK No.3269-3 (WANA) OGDCL was single bidder winner with 236 work unit. According the Petroleum Division, the minimum investment to be carried out by the exploration and production (E&P) companies in these Blocks will be over USD 70.2 million in three years. Apart from E&P activities, the successful companies will also spend over USD 810,000 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.
