ISLAMABAD:
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has announced that the government is working on a shale gas policy framework and drilling for this yet-to-be-explored energy source will start next year.
He was speaking at the signing of an exploration licence and petroleum concession agreement for the Karak North block with Tallahassee Resources Inc here on Monday.
Petroleum and Natural Resources Secretary Abid Saeed, Petroleum Concessions Director General Saeedullah Shah and Tallahassee Resources Director from Khyber-Pakhtunkhwa Wasim Ahmad put their signatures on the licence and agreement.
Abbasi, while boasting that government’s policies had remained stable in the oil and gas sector, told the audience that some energy companies were interested in venturing into the exploration of shale gas, which is natural gas found trapped within shale formations.
“Our policies are stable and long marches (by the Pakistan Tehreek-e-Insaf and Pakistan Awami Tehreek) would not have serious implications for investment,” he said.
The government is also working on a policy for flare gas, which would be siphoned to the power plants. “Flare gas is likely to generate 300 to 500 megawatts of electricity,” Abbasi said.
Speaking about the Karak North block, he said it was located in Karak district of Khyber-Pakhtunkhwa and covered an area of 99.14 square kilometres.
The company that has won the licence has made minimum work commitment of $3.07 million. Apart from this, it is required to spend a minimum of $30,000 per year in the block on social welfare schemes.
On the occasion, the minister asked the director general of petroleum concessions to facilitate exploration and production companies in accelerating the pace of work in order to boost oil and gas production in the country.
With growing focus on increasing the hydrocarbon output, the Ministry of Petroleum and Natural Resources, after taking all provinces on board while finalising the model of petroleum concession agreement and exploration licence, awarded provisional exploration rights for 50 blocks to nine companies in January this year.
Of these, 21 blocks were in Balochistan, 15 in Punjab, seven in Khyber-Pakhtunkhwa, six in Sindh and one in Federally Administered Tribal Areas (Fata). The ministry has already signed 43 exploration licences and petroleum concession agreements this year.
Tallahassee Resources is an exploration and production company based in Calgary, Canada. Established in 2007, it has core assets with stakes in more than 100 producing wells in British Columbia and Alberta, Canada.
According to the company, they are primarily focused on conventional and Montney shale gas play in British Columbia, and conventional light oil and Duverney shale play development in Alberta.
Moreover, it has exploration plans in Pakistan with current focus on light oil development in Kohat/Potwar belt with the acquisition of Karak North block. It intends to expand in the near future into Pakistan’s tight gas and shale oil development by utilising its existing technical expertise and North American assets.
The government is giving high priority to tapping hydrocarbon resources to bridge the demand and supply gap. Since it took power in June last year, 120 wells have been drilled and 30 discoveries made.
Oil production in the country has crossed 98,980 barrels per day, the highest output level achieved so far.
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