Govt executes petroleum concession agreements, exploration licences for eight oil, gas blocks

E&P companies will be investing over $33.3 million in three years

ISLAMABAD  -  The government of Pakistan on Wednes­day executed petroleum concession agreements (PCAs) and exploration licences for eight oil and gas blocks where E&P companies will be investing over $33.3 million in three years.

The signing ceremony to execute petroleum concession agreements (PCAs) and exploration licences (ELs) was held here which was attended by Muhammad Ali, Minister for Power and Petroleum, Dr Muhammad Jahan­zaib Khan, Special Assistant to Prime Minister (Governance Effectiveness), DG SIFC, Major General Tabassum Habib (Hilal-e-Imtiaz Military), Na­tional Coordinator SIFC, Lieutenant General (R) Muhammad Saeed. 

The petroleum concession agree­ments and exploration licences were executed over 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 joint venture of Pakistan Petroleum Limit­ed (Operator) and OGDCL and Saruna West (2666-1) with joint venture of POL (Operator), PPL and OGDCL.

The exploration licences and PCAs were signed by Momin Agha, Secretary Petroleum Division, Kashif Ali, Director General Petroleum Concessions on be­half of Government of Pakistan, Ahmed Hayat Lak, Managing Director/Chief Executive Officer (CEO), OGDCL, Shuaib A Malik, Chairman/CEO, POL, 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 next few years. The minister expressed that execution of the exploration li­cences and PCAs will not only enhance investment in the petroleum sector but will also contribute in 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 the pro­duction. Moreover, companies are obli­gated to spend a minimum of $30,000/year in each block on social welfare schemes in their respective areas.

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