The Petroleum Division in Pakistan on Wednesday signed petroleum concession agreements and awarded exploration licences for hydrocarbon (HC) search in two blocks of the country, reports The Express Tribune.
The agreements were signed by Dr Arshad Mahmood, Secretary Petroleum Division. Federal Minister of Energy Mohammad Hammad Azhar was present on the occasion.
The minister emphasised that the government was committed to expediting the oil and gas exploration work to meet energy needs of the country by increasing the hydrocarbon reserves over the next few years.
He said that the new exploration licences and petroleum concession agreements would not only help enhance investment in the petroleum sector but would also contribute to bridging the energy demand and supply gap.
He announced that bidding for an offshore exploration licence would commence in the next few months. In addition to tapping the domestic resources, the government was also endeavouring to establish new terminals for the import of liquefied natural gas (LNG), he said.
The new blocks for which agreements were signed are located in Attock and Loralai districts.
Work on Block No. 3,068-9 (Nareli) will be carried out by the joint venture of Mari Petroleum Company (operator) with 39% shareholding, Pakistan Oilfields Limited (32%) and Spud Energy (29%).
Separately, the work on Block No. 3,372-25 (North Dhurnal) will be carried out by a joint venture of Pakistan Oilfields (operator) with 60% shareholding and Mari Petroleum (40%).
The minimum firm work commitment from the companies to both blocks is $24.32 million for a period of three years.
Companies are obligated to spend a minimum of $30,000 a year in each block on social welfare schemes, which will ultimately generate economic activity in these areas and enhance the living standards of residents.
© 2024 - All Rights with The Financial Express
