Pakistani petroleum exploration and production companies are gearing up for substantial investments, exceeding $33 million, as part of recently signed petroleum concession agreements (PCAs) and exploration licenses (ELs). The country’s energy ministry disclosed this development, highlighting the commitment of various industry players to contribute to the growth of Pakistan’s oil and gas sector.
The signing of these agreements involved key figures such as Momin Agha (Petroleum Division secretary), Kashif Ali (director-general of petroleum concessions), Ahmed Hayat Lak (CEO of Oil & Gas Development Company Limited – OGDCL), Shuaib A. Malik (chairman of Pakistan Oilfields Limited – POL), Sikandar Ali Memon (COO of Pakistan Petroleum Limited – PPL), and Dr. Nadeem Ahmed (head of exploration at United Energy Pakistan – UEP).
The eight blocks covered by these agreements include Kotra East, Murradi, Sehwan, Zindan-II, Multanai, Sawan South, Gambat-II, and Saruna West. These blocks will see significant investments over the next three years, with the E&P companies committing to a minimum expenditure of $33.3 million for prospecting activities.
The companies have pledged to invest in the development of production in the discovered blocks and allocate a minimum of $30,000 per year for social welfare schemes in the respective areas. This underscores a broader commitment to community development and corporate social responsibility within the scope of their operations.
Minister for Power and Petroleum Muhammad Ali, who witnessed the signing ceremony along with other officials, expressed optimism about the positive outcomes of these agreements. He anticipates that the investments will not only boost the petroleum sector but also contribute to bridging the gap between energy demand and supply in Pakistan.
It is essential to note that Pakistan relies significantly on imports to meet its oil demand, being only 16.35 percent self-sufficient in oil production. The new investments and agreements aim to enhance the country’s energy security, promote local production, and stimulate economic growth in the energy sector.
