ISLAMABAD: The government is set to establish a new zone — Frontier Zone — for exploration and production activities in the area bordering Afghanistan wherein well-head price will be offered on the higher side comparatively.
The new zone will be part of the amended Petroleum Policy 2012 that will be pitched in the Council of Common Interests (CCI) meet on Monday (today) with Prime Minister Imran Khan in the chair, a senior official of the Petroleum Division told The News.
Now the new zone will, he said, be created to be called Zone-I (F) covering Kharan, Pishin and FATA which are reported to have tremendous potential of hydrocarbons estimated to be over 20 trillion cubic feet (TCF) and yet unexplored so far.
The well-head price for the new zone has not yet been worked out, as it will be finalised after amendments to the Petroleum Policy 2012 are first approved by the CCI.
However, it will be on the higher side if compared with the existing onshore well-head prices in the country that vary in the range of $4-6.6 per barrel. However, the well-head price for the new zone to be established has been proposed at $7 per MMBTU, but it is yet to be finalised.
The official explained that a fresh zone for high risk frontier regions will be set up with better returns, offering good prospects of higher hydrocarbons find and production.
He said under the existing policy, there were three zones for onshore, defined on the basis of risk and investment opportunities. Zone-I covers Western Balochistan, Pishin and Potohar, Zone-II consists of Kirther, Eastern Balochistan, Punjab and Suleman basins, while the Lower Indus Basin is described as Zone-III.
The well prices to investors are offered at the rate of $6 per MMBTU for Zone-III, $6.3 for Zone-II and $66 per MMBTU for Zone-I.
