Foreign firms not interested in offshore oil, gas drilling
ISLAMABAD: The National Assembly’s Standing Committee on Energy (Petroleum Division) was informed on Thursday that no company was interested in offshore oil and gas exploration in the country after Kekra-1, an exploratory well, remained dry in 2019.
The session was chaired by Syed Mustafa Mehmood, the committee’s chairman. The members enquired about reasons for the lack of interest being shown by international players in the country’s oil and gas sector.
Petroleum Minister Musadik Malik informed the standing committee that major oil and gas companies were leaving Pakistan.
The minister said global companies turn to countries where it is easy to do business.
“The security cost is also a problem for oil and gas exploration in Pakistan. In areas where companies search for oil and gas, they have to spend a significant amount to maintain security for their employees and assets,” the minister said.
He added, however, that discussions were underway with two Chinese companies for investment in onshore as well as offshore exploration activities.
The committee was informed that 467 oil and gas discoveries had been made in the country to date — 96 oil wells and 371 of natural gas.
Mr Malik said there was a need to increase local oil and gas exploration as supplies were running low. “We are working on a new oil and gas exploration policy to make investments attractive.”
The minister said global LNG supply was rising, citing the example of Qatar, which planned to increase its supply by 33 per cent next year.
Petroleum Secretary Momin Agha presented an overview of the ministry’s functions.
According to him, the country consumes 4.2 billion cubic feet of gas daily, including one billion cubic feet of LNG.
The committee was informed that circular debt in the gas sector was Rs2,000bn while small domestic gas consumers were given a subsidy of Rs130bn and this subsidy was passed on to other users.
Published in Dawn, July 19th, 2024