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Wednesday June 29, 2022

Auction of 14 oil and gas blocks gets muted response from foreign firms

April 19, 2022

ISLAMABAD: The auction of 14 on shore oil and gas blocks drew a tepid response from foreign companies with only local firms dominating the bids, sources said on Monday.

The Petroleum Division received bids for only nine offered blocks. The division failed to attract any foreign direct investment (FDI) in the blocks, result of the bids available with The News showed.

Moreover, DG Petroleum Concessions (GDPC) attracted zero bids for five blocks out of 14, which include Block No 2967-6 at Sibi, Block No 3071-5 at Fatehpur, Block No 2871-7 at Khangarh West, Block No 2770-4 at Islamgarh and Block No 2762-2 at Desert.

Local companies and their joint venture came up with their bids for nine blocks, with the minimum investment to be carried out by them in these blocks being over $70.2 million in three years.

A statement said the petroleum division had publicly opened the “bids for 14 onshore blocks for grant of Petroleum Exploration Rights through open bidding on April 18”. “Bids were received for nine blocks and opened by the bid opening committee in the presence of companies’ representatives. The minimum investment to be carried out by the exploration and production companies in these blocks would be over $70.2 million in three years.”

According to the results, for Block No 2866-5 (Kalat West), Pakistan Petroleum Limited (PPL) and Mari Petroleum Company Limited (MPCL) came up with a joint bid. The companies won the block for exploration and production activities for oil and gas.

Likewise, for Block No 2967-5 (Mach), MCPL, PPL and United Energy Pakistan Limited (UEPL) came up with a joint bid for 10,454 work units, whereas Oil and Gas Development Company (OGDC) and Pakistan Oilfields Limited (POL) would have the license to carry out exploration and production activities for 781 units.

MPCL, PPL and UEPL also submitted the joint bid for Block No 2867-9 (Dadhar), and won it for exploration and production activities in 3,209 work units. In the same block, OGDCL and POL won the bid for exploration and production activities for 937 work units.

MPCL and UEPL won Block No 2969-11 (Meeran Pur) for 210 work units, and Oil and Gas Investment Limited (OGIL) won rights for 153 work units in the same block.

PPL and MPCL jointly won the bid for 360 work units in Block No 2869-15 (Sui North). OGDCL and POL won the bid for 458 work units in Block No 2966-2 (Chah Bali).

OGIL won Block No 3171-2 (Nurpur) for 111.5 work units and Block No 3072-9 (Okara) for 169.5 work Units. OGDCL won Block No 3269-3 (Wana) for exploration and production activities with 236 work units.

The statement said the successful companies would spend over $810,000 in social welfare for the areas of their respective blocks besides investment in E&P activities. “For blocks that have discoveries, investments of several hundred million dollars would be made by these companies to develop the production.”

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