E&P Made 26 Oil, Gas Discoveries In Two Years

ISLAMABAD, (UrduPoint / Pakistan Point News - 18th Aug, 2020 ) :Exploration and Production (E&P) companies, operating in different hydrocarbon potential areas of the country, have made 26 oil and gas discoveries during first two years of the PTI government.

"As many as 26 discoveries with initial flow of 6,799 Barrels per Day (BPD) oil and 234 Million Cubic Feet per Day (MMCFD) gas have been announced," according to the two-year performance report of Pakistan Tehreek-e-Insaf (PTI) government issued by Minister for Information and Broadcasting Senator Shibli Faraz along with members of the Federal cabinet here at a press conference.

The 204-page report, compiled by the Ministry of Information and Broadcasting, contained the government's achievements and reforms in diverse fields during a period from August 18, 2018 to August 18 2020.

The E&P companies, during the period, have added 9,444 BPD (Barrels per Day) oil and 218 MMCFD (Million Cubic Feet per Day) gas was added in the national pool against the depletion of 9611 BPD oil and 279 MMCFD gas from the operational wells.

While, the companies had acquired around 5,110 2D Line-Kilometer and 2,693 Square-Kilometer seismic data to assess potential of hydrocarbon deposits in different pockets.

Till May 21, 2020, the government had collected Rs142.977 billion from different E&P companies, out of which Rs 51.196 billion were received on account of crude oil and Rs 91.781 billion for natural gas extraction.

During the period, the government granted 10 licences and extended 124, granted 15 leases and extended 48, drilled 142 wells including 50 exploratory and 92 appraisal/development, approved 404 well notices, commenced 140 wells and the number of miscellaneous wells stood at 264.

Keeping in view the country's existing and future needs, the Petroleum Division has devised a prudent strategy to achieve self-sufficiency in oil and gas sector by introducing ease-of-doing-business and radical measures to ensure a level-playing field for all competitors.

Under the strategy, as many as 40 new blocks have been identified in different parts of the country to step up oil and gas exploration activities as the existing reservoirs are fast-depleting and since long there is no major discovery.

Pakistan has large sedimentary area of 827,268 in which only 1,123 exploratory and 1,496 appraisal/development wells have been drilled so far with an average well drilling density of 3.0 wells per 1,000 square kilometers.

These wells have resulted in 411 discoveries giving a success ratio of 1:2.8. About 95 percent of these wells are concentrated in Indus Basin whereas Balochistan, Khyber Pakhtunkhwa and offshore area is virtually unexplored.

The Petroleum Division has granted open access to private sector in import of Liquefied Natural Gas (LNG) besides allowing them to set up their own terminals.

Euro-V standard fuel has been introduced in the country to meet requirements of the hi-tech vehicles and tackle the environmental issues like pollution and smog factors.

The government has fixed general sales tax on fuels at the rate of 17 percent by law to streamline the matters related to pricing of petroleum products.

While, two new modern refineries are being built and an incentive package has been announced for up-gradation of existing facilities.

Under its ease-of-doing-business plan, the government the government has also simplified the approval process for those who wanted to work in exploration and production business.

During the two-year period, the government also finalized a new downstream oil policy, whereas the work on dualization of the white oil pipeline would start soon.

Besides, engineering work was being carried out for development and enhancement of underground storage capacity of petroleum products.

The Petroleum Division has reconstituted Boards of Directors of ten companies, appointing professional CEOs in Pakistan State Oil Company Limited, Oil and Gas Development Company Limited Pakistan Mineral Development Corporation and Government Holdings (Private) Limited.

Hydrocarbon Development Institute of Pakistan is upgrading its lab testing facilities to ensure provision of quality petroleum products across the country.