Four E&P Companies to Invest Over $33 Million in Petroleum Sector

The federal government has executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs) with four exploration and production companies (E&Ps). In a press statement issued on Wednesday, the government said that the PCA and ELs have been executed over block no. Kotra East (2867-8), Murradi (2767-7), Sehwan (2667-19) and Zindan-II (3271-9) with Oil & Gas Development Company Limited (OGDCL), Multanai (3168-3) with Pakistan Oilfields Limited (POL), Sawan South (2668-26) with United Energy Pakistan Limited (UEP) – a Chinese Exploration & Production Company, Gambat-II (2668-25) with Joint Venture of Pakistan Petroleum Limited (Operator) and OGDCL and Saruna West (2666-1) with Joint Venture of POL (Operator), PPL and OGDCL. Speaking at the signing ceremony, Minister for Petroleum Muhammad Ali stated that these efforts will bear fruit for the country in the form of additional hydrocarbon reserves during next few years. The minister said that execution of the ELs and PCAs will not only enhance investment in the petroleum sector but will also contribute in bridging the energy demand and supply gap. The minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks for prospecting will be over $33.3 million in three years. For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop the production. Moreover, companies are obligated to spend a minimum of $30,000/year in each block on social welfare schemes in their respective areas.