Pakistan grants exploration licences of six oil, gas blocks

ISLAMABAD: Pakistan on Friday granted petroleum concessions and exploration licences of six oil and gas blocks across the country to local companies as the government is struggling to reduce gap in energy demand and supply.

Director General Petroleum Concession of petroleum division granted petroleum concession agreements and exploration licences over Block No. 3068-6 (Killa Saifullah) and Block No. 3067-7 (Sharan) to Oil and Gas Development Company Limited (OGDCL) and Mari Petroleum Company Limited (MPCL), Block No. 3069-9 (Suleiman) to OGDCL and Pakistan Petroleum Limited (PPL) and Block No. 2467-17 (Sujawal South), Block No.3273-5 (Jhelum) and Block No.3272-16 (Lilla) to OGDCL.

Secretary Petroleum Division Asad Hayaud Din and Petroleum Concessions Director General Jabbar Memon signed the agreements with managing directors of OGDCL, MPCL and PPL.

Minister for Energy Hammad Azhar said execution of the exploration licences and PCAs will enhance investment in the petroleum sector and contribute in bridging the energy demand and supply gap.

The meeting was informed that minimum firm work commitment for these blocks is $24.68 million for the period of three years. Companies are obligated to spend a minimum of $30,000/year in each block on social welfare schemes.

Annual social welfare obligation in six blocks is $180,000. Killa Saifullah block covering an area of 2421.96 square kilometers in the district of Killa Saifullah while Sharan block covering an area of 2497.89 sq. kms is located in the districts of Killa Saifullah and Zhob and Suleiman block covering an area of 2172.89 sq. kms is located in Musakhel, Zhob, Killa Saif Ullah and Loralai districts. Sujawal South covering an area of 1914.1 sq. km. is located in Sujawal district.

Jhelum block covering an area of 1524.65 sq. kms is located in the districts of Jhelum, Gujrat and Mandi Bahauddin while Lilla block covering an area of 2361.12 sq. kms is located in Chakwal, Jhelum and Khushab districts.

OGDCL is a public limited company engaged in exploration and production activities in the country for the last four decades. OGDCL holds the largest share of 41 percent of oil and 36 percent of gas reserves in the country. Its share in total oil and gas production is 47 and 29 percent, respectively.

OGDCL is the operator of 41 exploration licences and working interest owner in six other exploration blocks operated by various exploration and production companies. OGDCL is currently producing 35,805 barrels of oil per day (bopd), 1,012 million metric cubic feet per day (mmcfd) of gas, 761 metric tons of liquified petroleum gas and 53 metric tons of sulphur per day.

PPL is also a public limited company. Its percentage share of total oil and gas production is 13 and 19 percent, respectively. PPL is the operator in 26 exploration licences and working interest owners in 17 other exploration blocks operated by various E&P companies. PPL is currently producing 10,076 bopd, 673 mmcfd of gas and 238 metric tons of LPG.

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. Mari Petroleum is an integrated exploration and production Company, currently managing and operating the largest gas reservoir at Mari gas field, Daharki in Sindh.

MPCL is the second largest gas producer in the country with 753 mmcfd of gas and 1,722 bopd oil.

MPCL is the operator in six development and production leases, 11 exploration licences and working Interest owners in seven other exploration blocks operated by various E&P companies.