Pakistan’s oil and gas companies plan to invest more than $33 million in exploration over the next three years

Pakistani petroleum exploration and production enterprises are gearing up for substantial investments exceeding $33 million, following the recent signing of petroleum concession agreements (PCAs) and exploration licenses (ELs). This significant development, disclosed by the country’s energy ministry, underscores the commitment of various industry stakeholders to foster the growth of Pakistan’s oil and gas sector.

Key figures involved in the signing of these agreements include 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 agreements cover eight blocks, namely Kotra East, Murradi, Sehwan, Zindan-II, Multanai, Sawan South, Gambat-II, and Saruna West. Over the next three years, these blocks will witness substantial investments, with the exploration and production companies committing to a minimum expenditure of $33.3 million for prospecting activities.

In addition to investing in block development and production, the companies have committed to allocating a minimum of $30,000 per year for social welfare schemes in the respective areas. This reflects a broader dedication to community development and corporate social responsibility within the ambit of their operations.

Minister for Power and Petroleum Muhammad Ali, present at the signing ceremony alongside other officials, expressed optimism about the positive outcomes stemming from these agreements. He foresees that these investments will not only bolster the petroleum sector but also contribute to narrowing the gap between energy demand and supply in Pakistan.

It’s noteworthy that Pakistan heavily depends on imports to meet its oil demand, with only 16.35 percent self-sufficiency in oil production. The new investments and agreements aim to fortify the country’s energy security, promote local production, and stimulate economic growth within the energy sector.

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