ISLAMABAD - Despite various challenges, the Ministry of Petroleum and Natural Resources is working on several fronts to meet the country’s growing energy requirements.
As part of such efforts, the government recently announced a new exploration bid round offering 60 exploration blocks along with road shows in Houston and London in early December to showcase the Petroleum Policy 2012 and lure the multinational companies to participate in this bid round, an official of the Ministry of Petroleum said Thursday.
He said policy was as one of the best in the world since it offers level playing field to E&P companies, both local and international ones. He said the policy offers price up to a maximum of $6.5 per MMBTU for onshore and up to a maximum of$9 per MMBTU for offshore oil and gas discoveries.
He also informed the government for the first time in its history has formulated policies on Tight Gas and Low BTU Gas. As regards the prospects of oil and gas exploration in the country, he pointed out that Pakistan is endowed with vast sedimentary area of over 800,000 square kilo-meters of which over 70 percent is yet to be explored. The success ratio of oil and gas discoveries is one of the best in the world.
Similarly, the ECC of the Cabinet has approved the LPG (Production and Distribution) Policy Guidelines, 2012 which would help end cartelization in LPG market and promoting its utilization in the automotive sector.
In addition, the Sui Southern Gas Company (SSGC) and United Energy of USA recently signed a Memorandum of Understanding (MoU) pertaining to supply of LNG in Houston.
He said according to the MoU signed between SSGC and United LNG of USA, the later will supply 4 Million metric tons of Liquefied Natural Gas (LNG) per year to SSGC, supplementing the government’s efforts to ensure energy security of the country.