ISLAMABAD -  Eying on the target of the production of 2 million barrel oil per day, by 2025, the Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) on Wednesday signed a Memorandum of Understanding (MoU) with the American Halliburton company.

Under the MoU, American Halliburton company would train the KPOGCL workforce and provide it with latest technology software and introduce technology in exploration and production of oil and gas in the province, KPOGCL CEO Raziuddin told media persons here after signing the MoU with Ahmed Kenawi, the senior vice president of Middle East and North America of the Halliburton company.

Halliburton will also train local manpower on latest software and provide on-job training to bring them at par with international standards. “The Halliburton is one of the World’s biggest services companies and its’ come back to Pakistan, especially to Khyber Pakhtunkhwa is a sign of investors’ increased interest and confidence in the country’s improving security and business environment,” Raziuddin said. He said that this company had worked in Pakistan earlier as well and its’ return to Pakistan will send a positive message to other companies who had left the country over last several years, he added.

“We are targeting to achieve crude oil production of two million barrels per day by 2025 which is currently 51,000 barrels a day (53pc of country’s total oil production) which was only 30,000 barrels four-year back,” the KPOGCL CEO said.

“Similarly, natural gas production has been targeted at 2,000 million cubic feet/day (mcfd) by 2025 which is currently at 430 mcfd and three year back it was 330mcfd. He further said that liquefied petroleum gas (LPG) production was only 10 tons/day and now it has been raised to 550 tons/day and by 2025, we are targeting to increase its production to 3,000 tons a day,” he maintained.

Razziuding said that out of 28 active rigs in Pakistan, 11 are working in KP. Estimates show that KP has recoverable reserves of 16 trillion cubic feet of natural gas and more than 1.1 billion barrels of oil. The province has high success rate of drilling, as among each 2.8 wells dug for the oil or gas, one well is successful, whereas world average is one out of ten wells, he claimed.

The KPOGCL chief executive further said that with more and more investment in the sector, it would also bring industrialisation in the province including setting up of fertilisers plants, refineries and other relevant industries that will ultimately help create more jobs, boost provincial and country’s overall economy, reduce dependence on imported oil and save hard-earned foreign exchange. The increased production will also help in social uplift of the province, by allocating more and more royalties for health and education and other uplift schemes, he added.

On the occasion, Halliburton Senior Vice President Ahmed Kenawi, said, “It is pleasure to sign MoU with the KPOGCL under which we will be training the workforce and transfer advanced technology.

Hopefully, it will be a growth opportunity for both the companies.”