The TAL joint venture would have to spend $23 million on an exploratory well called “Razgir,” and the bidding process has already started.
MOL, an oil and exploration company based in Hungary, has announced an additional investment of $23 million in the Khyber Pakhtunkhwa (KP) Tal block to encourage local oil and gas exploration and production, which may help to alleviate the nation’s energy shortages.
The development occurred in the wake of the Secretary of Petroleum’s Thursday statement to NA penal on petroleum that Pakistan was a high-risk nation for new investment. The TAL joint venture would have to spend $23 million on an exploratory well called “Razgir,” and the bidding process has already started. That was revealed by MOL’s upper management in a letter to Prime Minister.
MOL announced in a letter to the head of the government that investment in the Tal block in the KP province has resumed after a two-and-a-half-year hiatus due to a pricing problem. The current administration has resolved the pricing dilemma, paving the way for increased investments in E&P activities in the nation.
Since 1999, the MOL Group of Hungary has actively participated in Pakistan’s oil and gas industry through its subsidiary, MOL Oil & Gas Co Pakistan. Together with its local joint venture partners, OGDCL, PPL, GHPL, and POL, it has made a significant contribution to Pakistan’s energy security.
The largest hydrocarbon-producing block in the nation is MOL’s Tal JV block in KP, which has a production rate of 23% oil, 9% petrol and 25% LPG.
In addition to paying over Rs 50 billion in taxes, royalties, and CSR contributions to the national exchequer each year and saving over $1 billion in foreign exchange by reducing their reliance on imported oil, MOL and its joint venture partners have so far invested $2.8 billion in Pakistan.
Ali Murtaza Abbas, the company’s regional vice president for the Middle East, Africa, and Pakistan, wrote a letter to the prime minister of Pakistan, expressing his appreciation for his country’s recent decision to allow the sale of gas from MOL’s Mamikhel South discovery to a third party in accordance with the terms of the Tal joint venture petroleum concession agreement (PCA). The gas sales agreement for the same stands executed.
According to the letter, MOL Pakistan felt extremely pleased to announce the restart of its exploration activities in the Tal block, which had been put on hold due to the failure to resolve the long-standing Mamikhel South gas pricing issue.
The choice would be crucial in giving domestic oil and gas production and exploration the much-needed boost, and it would also help to lessen the nation’s energy shortages. We have also begun the bidding process for “Razgir,” our upcoming exploratory well, which would cost the TAL JV USD 23 million.
The letter also praised Shahid Khagan Abbasi, chairman of the Prime Minister’s Energy Task Force, for his insight and foresight in supporting MOL’s principled stance as being in compliance with the pertinent terms of the Tal JV PCA.