Oil, gas reserves to be confirmed only after exploration: sources

ISLAMABAD: As Pakistan looks to address its increasing fuel and energy requirements, Petroleum Division sources told Geo News on Saturday that the discovery of oil and gas reserves in the country’s territorial waters could only be confirmed after due exploration.

“A geological survey was conducted to search for oil and gas in the sea and its data is being studied,” sources within the Petroleum Division said, adding that it would be too early to claim that the country had discovered massive oil and gas reserves.

Elaborating on the way forward, Petroleum Division sources said that the Director General (DG) Petroleum Concessions Office will conduct bidding in the first quarter of next year. Successful bidders will be awarded offshore blocks, they added.

Pakistan’s oil reserves, according to data released by Pakistan Petroleum Information Services, have witnessed a significant decline of 14% year-on-year. Furthermore, gas reserves also declined by 5% year-on-year, standing at 18,109 billion cubic feet (bcf) compared to 19,042 bcf in December 2022. In light of the prevailing situation, the incumbent government last month announced its plans to auction 20 offshore blocks for oil and gas exploration. With regards to the reports of the discovery, the sources mentioned that the country has carried out searches for oil and gas reserves in the sea on several occasions before, highlighting that offshore exploration activities in the past were based on estimates. “Until gas or oil is discovered, the size of the reserves cannot be determined,” the sources noted.