Oil, gas firms win eight more exploration licences

Of the total, 21 blocks are in Balochistan, 15 in Punjab, six in Sindh and eight in Khyber-Pakhtunkhwa. PHOTO: FILE

ISLAMABAD / KARACHI: 

The government on Friday signed eight petroleum concession agreements and granted exploration licences to oil and gas companies, which will attract a minimum investment commitment of $60.73 million.

Apart from the work commitment, the companies will spend a minimum of $30,000 a year on social welfare schemes in each of the awarded blocks. The blocks are located in all four provinces of the country.

According to a statement issued by the Ministry of Petroleum and Natural Resources, before signing the fresh deals the government had inked 20 petroleum concession agreements and awarded exploration licences earlier in February.

The ministry said after taking all provinces on board for finalising model petroleum concession agreements and model exploration licences, it had provisionally awarded 50 blocks to nine exploration and production companies on January 21.

Of these, 21 blocks are in Balochistan, 15 in Punjab, six in Sindh and eight in Khyber-Pakhtunkhwa.

Petroleum and Natural Resources Secretary Abid Saeed, Director General Petroleum Concession Saeedullah Shah, OMV Senior Vice President Middle East and Caspian Region Erwin Kroll, Oil and Gas Development Company (OGDC) Managing Director Riaz Khan and Pakistan Petroleum Limited (PPL) MD Asim Murtaza signed the agreements. Petroleum Minister Shahid Khaqan Abbasi was also present.

PPL inks three accords

PPL signed three petroleum concession agreements with the government for blocks 2569-5 (Khipro East), 2866-4 (Margand) and 2867-5 (Kuhan).

Margand and Kuhan blocks would be explored in a joint venture with OMV (Pakistan), the Austrian petroleum exploration company, PPL said in a statement.

PPL will be the operator in Khipro East and Margand, located in Sindh and Balochistan, respectively. The two blocks together cover an area of approximately 4,900 square kilometres.

OMV would be the operator in Kuhan, also located in Balochistan, marking the first time in recent years that a multinational firm ventured as an operator, it said.

“The signing allays general apprehension regarding Balochistan’s security situation forestalling exploration activities in the province on the one hand and lack of interest by multinational companies to invest in Pakistan’s oil and gas sector on the other.”

Having played a key role in bringing the Austrian firm to Pakistan in 1990, PPL and OMV have since partnered in successful ventures, including Sawan, Miano, Latif and Tajjal fields.

PPL intends to make an estimated total investment of $50 million in Khipro East and Margand to discharge minimum work commitment, in processing and interpretation of 2D/3D seismic data and exploratory drilling during the first three years.

The signing of new agreements and licences, which is the third round held by the current government, concludes the grant of all the blocks won by PPL in the last bidding round in March 2013.