Petroleum Division on Friday awarded six more oil and gas blocks to three leading companies aimed at achieving self-sufficiency in the energy sector by increasing Exploration and Production (E&P) activities in potential areas of the country.
Minister for Energy Muhammad Hammad Azhar witnessed the signing ceremony of Petroleum Concessions/Exploration Licences of 6 oil & gas blocks that held here at the Petroleum Division, a news release said.
The Exploration Licences (ELs) and Petroleum Concession Agreements (PCAs) were signed by Secretary Petroleum Mian Asad Hayaud Din and Director General Petroleum Concessions Abdul Jabbar Memon on behalf of the government.
While, Managing Director (MD) Oil and Gas Development Company Limited (OGDCL) Shahid Saleem Khan, MD Mari Petroleum Company Limited (MPCL) Faheem Haider and MD Pakistan Petroleum Limited (PPL) signed the agreements representing their companies.
The Director General Petroleum Concession (DGPC) granted the PCAs and ELs over Block No. 3068-6 (Killa Saifullah) and Block No.3067-7 (Sharan) to OGDCL and MPCL, Block No. 3069-9 (Suleiman) to OGDCL and PPL, and Block No. 2467-17 (Sujawal South), Block No.3273-5 (Jhelum) and Block No.3272-16 (Lilla) to OGDCL.
Energy Minister (Petroleum Division) Hammad Azhar said the increased E&P efforts would bear fruits for the country in the form of additional hydrocarbon reserves during next few years.
He expressed confidence that the ELs and PCAs would not only enhance investment in the petroleum sector but also contribute in bridging the energy demand and supply gap.
The minister said the accelerated E&P activities would also create employment opportunities.
The DGPC highlighted that minimum firm work commitment for these blocks was $24.68 million for the period of three years. “The companies are obligated to spend a minimum of US $ 30,000/year in each block on social welfare schemes. Annual social welfare obligation in respect of these 06 blocks is US $ 180,000.” Killa Saifullah Block spans over an area of 2421.96 square kilometers (sq.
kms), Sharan Block an area of 2497.89 sq. kms, Suleiman Block an area of 2172.89 sq. kms, Sujawal South an area of 1914.1 sq. km, Jhelum Block an area of 1524.65 sq. kms and Lilla Block an area of 2361.12 sq. kms.
OGDCL, being a Public Limited Company, is engaged in E&P activities in the country for the last four decades. It holds the largest share of Oil 41 percent and Gas 36 percent of the total reserves in the country.
The company’s percentage share of total oil and gas production in Pakistan is 47 percent and 29 percent, respectively. OGDCL is the Operator of 41 exploration licences and working interest owner in six (6) other exploration blocks operated by various E & P companies. OGDCL is currently producing 35,805 BOPD (Barrel Oil per Day] of Oil and 1,012 MMCFD [Million Cubic Feet per Day) of gas, besides 761 Million Tones of LPG and 53 Million Tonnes of Sulphur per day.
The PPL, also a Public Limited Company engaged in Exploration & Production activities in the country, is the country’s oldest and largest Exploration & Production company, which was incorporated during 1950.
Its percentage share of total Oil & Gas production in Pakistan is 13 percent and 19 percent respectively.
The PPL is the operator in 26 Exploration Licences and working Interest owners in 17 other exploration blocks operated by various E&P companies. It is currently producing 10,076 BOPD of Oil, 673 MMCFD of Gas and 238 M Tonnes of LPG [Liquefied Petroleum Gas].
The MPCL is primarily an exploration and production company in the upstream segment of the petroleum industry. Its principal business activities include oil and gas exploration, drilling, field development, production and distribution of hydrocarbons (including natural gas, crude oil, condensate and LPG) as well as provision of E&P related services on commercial basis. The MPCL is the second largest gas producer in the country with 753 MMCFD Gas and 1,722 BOPD oil.
It is the operator in six Development & Production Leases, 11 Exploration Licences and working Interest owners in seven other exploration blocks operated by various E&P companies.
Originally published at Urdu point