ISLAMABAD-Minister of State for Petroleum Mussadiq Malik has ruled out the possibility of instant decrease in the oil prices in the country with the arrival of first ship of Russian oil, saying that the prices will come down as soon more cargoes of cheap oil touch the country’s shores.
The minister also announced that to increase the production of indigenous oil and gas in the country, the government is resuming offshore exploration work. The Russian oil destined for Pakistan has reached the port of Oman and will reach Pakistan in couple of weeks, Minister of State for Petroleum said while addressing Pakistan Oil and Gas Conference 2022: Securing Our Energy Future, organised by Petroleum Institute of Pakistan. Minister of State for Petroleum addressed delegates through a video recorded message highlighting the importance of energy sector reforms and goals for the sustainable energy future of Pakistan.
Regarding the impact of Russian cargo arrival on the prices of petroleum products in Pakistan, the minister said that it will not matter if one ship comes, the prices will come down as more cargoes will arrive. Mussadiq Malik added that wherever cheap oil is available in the world Pakistan will try to purchase it. He said that with the reduction of oil prices, the cost of electricity generation will also decrease. Efforts are under way to increase the production of gas at the local level.
Therefore it has been decided to resume work on offshore oil and gas exploration. It is worth mentioning here that back in 2019, the then PTI government had abandoned work on the offshore Kekra-1 drilling operations after no reserves were found there. The minister said that green energy has become indispensable to avoid environmental change. He said that the country is moving toward green energy.
Malik further said that to maximize the gas supply the government is planning to reopen the closed gas wells. Efforts are being made to give some concessions to these closed wells, he added. Similarly, the minister said that there are vast reserves of tight gas in the country. Soon the government will bring tight gas policy in the country, he said. The conference served as a significant platform for the launch of Pakistan Energy Outlook Document 2022, while highlighting the collaborative efforts of PIP and NED University of Engineering and Technology in analyzing the changing energy demand-supply scenarios.
Over the course of the conference, key topics included in-depth discussions on the challenges and solutions for sustainability in the oil sector, Pakistan energy supply chain and associated safety challenges, power supply assessment and demand side management opportunities, Pakistan’s offshore potential, E&P challenges and opportunities, Pakistan’s Refining sector – Challenges and opportunities, the future of LPG in Pakistan and addressing the growing natural gas shortage.