The Nation............................................................................................................................ October 25, 2011
ISLAMABAD - Ministry of Petroleum and Natural Resources has sent draft of Petroleum Exploration and Production Policy 2011 to the provinces for comments to be tabled during the upcoming Economic Coordination Committee (ECC) of the Cabinet for final nod, it was learnt.
Official sources informed TheNation that draft of Petroleum Exploration & Production Policy 2011 has been sent to the provinces to know their stance and it is expected that within one week they would submit their final position prior to presenting it to the ECC for final approval before its promulgation in the country.
They were hopeful that this policy would open large number of attractive avenues for local, and international companies and consortia to work in Pakistan in the field of exploration and production of oil and gas. Dispelling the impression that ministry had not taken all the stakeholders on board prior to formulating the policy draft, an official said draft is also available on the ministry’s website if someone interested to give comments, so there is no ambiguity and confusion in this regards. The purpose of this draft is to establish the policies, procedures, tax and pricing regime in respect of petroleum exploration and production (E&P) sector, he said.
“After having failed to attract investment in exploration of oil and gas through the petroleum policy 2007, the Petroleum Ministry has drafted a new policy for the sector in its desperate bid to cope with persisting energy crisis”, sources said, adding that the new petroleum policy draft is set to be tabled before ECC in the next meeting.
Official further informed that Pakistan’s average daily production of crude oil and gas in 2009-10 was 65,000 barrels and 4,063, million cubic feet, respectively. Pakistan’s indigenous oil and gas production meet around 53 percent of its total energy requirements while other indigenous sources provide 19 percent. As a result around 27 percent of the country’s energy needs are currently being met through imports. Furthermore, gas supply may soon become insufficient due to increasing demand and depletion of present reserves. This, in turn, will force Pakistan to soon begin importing large volumes of gas at international prices to feed the domestic market.
It is relevant to mention here that in 1991, Pakistan introduced first petroleum policy document. Keeping in view the new market conditions, urgent changes required for investment.
The policy also reflects the resolve of the government to accelerate exploitation of indigenous natural resources by attracting foreign investment with technology as well as promoting local companies to participate in E&P activities on a level playing field.
All local and foreign companies presently operating in Pakistan will be eligible to acquire petroleum right.
Smaller local Pakistani companies will be allowed to join consortia with other E&P companies in order to gain the necessary industry experience.
ISLAMABAD - Ministry of Petroleum and Natural Resources has sent draft of Petroleum Exploration and Production Policy 2011 to the provinces for comments to be tabled during the upcoming Economic Coordination Committee (ECC) of the Cabinet for final nod, it was learnt.