Indigenous oil, gas reserves to earn energy self-reliance

ISLAMABAD (APP) - Initiatives taken to exploit countrys rich natural resources sector are aimed at securing self- reliance on indigenous production, which otherwise cost billions of dollars on import. Pakistan is currently producing 64,000 barrels of oil a day while the production of gas stands at 3.9 MMCF, which meets around 40 per cent of countrys needs. Experts are eying on success of the governments moves undertaken to help countrys meets its current and future energy- related requirements. They hailed the new petroleum policy, which if implemented in true letter and spirit, would attain self-reliance of the country in this vital sector in four years. The policy targets tapping the natural resources to ensure energy security and fulfil the future requirements. It enshrines exploration work on over 250 blocks out of 350 to discover oil and gas and for this purpose up to 100 new licenses would be issued. Government focuses on accelerating oil and gas exploration and production activities, besides making the country self sufficient in this vital sector within four years, it was officially learnt on Monday. Sources in the ministry of petroleum and natural resources said efforts were underway to meet the challenges of ever increasing energy demands, encouraging foreign direct investment and also promoting local participation in the sector. Incentives would be given to local and foreign investors to launch venture in oil and gas sector. Expertise of foreign companies would also be utilised to explore more oil and gas by working on maximum exploratory well. Besides, investors would be offered higher prices up to four dollars per barrel as their share in exploration of crude oil to attract more investment in this sector. Government has reduced discount from 15-10 pc during extended well test phase pc to encourage the companies for early production. Local investment would be encouraged into energy sector with investors requiring to make deals with foreign companies or engage a high calibre technical and management team capable to exploit hydrocarbon resources to its full potential. Apart from indigenous means, officials said, emphasis would also be laid on importing LPG and completing two projects of LNG to enhance its availability for the consumers. Pakistan would invest in other countries in oil and gas sector. Pakistan Petroleum Limited has entered into a joint venture with a Yemeni company for undertaking work in Yemen at an estimated cost of US $ 17.5 million. The government would encourage the setting up of second-hand refineries in the coastal areas of Balochistan with tax holiday of seven and half years.

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