ISLAMABAD: Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi has said that exploitation of indigenous hydrocarbon resources is the top priority of the present government to bridge the gap between demand and supply.
The Minister Petroleum informed the media that since the taking over by the current government, 154 new wells have been spudded and 45 discoveries have been made so far while 500 MMCFD gas and around 34000 barrels of oil per day has been added into the system. Oil production in the country has crossed 100,000 barrel per day which is the highest oil production level achieved so far, the minister announced. He also highlighted that during the previous fiscal year 103 well were spudded, 28 discoveries were made, 43 Exploration Liences and 14 Lease were granted.
The Minister stated this while talking to the media persons during the signing of Petroleum Concession Agreement and Exploration License with Oil & Gas Development Company Limited (OGDCL) over Kulachi Block.
Kulachi block is located in D.I Khan, District of Khyber Pakhtunkhwa, Layyah, DG Khan, and Bhakkar districts of Punjab. The total area of the block is 2495 Sq. Km and minimum firm work commitment is US $ 10.10 Million. Apart from minimum work commitment, company is obligated to spend a minimum of US $ 30,000 per annum in the block on social welfare schemes. The Ministry of Petroleum & Natural Resources after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), awarded 50 blocks on provisional basis to nine E & P companies. Out of which 21 blocks are falling in Balochistan, 15 in Punjab, 6 in Sindh and 7 blocks in Khyber Pakhtunkhwa Province and 01 in FATA. The Ministry has already signed (44) ELs and PCAs in short span of time. Due to grant of 45 new blocks during the tenure of the current Government the area under exploration has increased from 269,152 to 362117 Sq Kms, which is about 44 % of total sedimentary area.
Jam Kamal Khan, Minister of State for Petroleum & NR, Secretary Petroleum, Abid Saeed, Zahid Muzaffar, Advisor to Ministry of Petroleum & Natural Resources Director General (PC) and Managing Director OGDCL were also present in the signing ceremony.