The government on Friday awarded six exploration blocks to oil and gas exploration and production companies to attract a minimum $24.68 million in firm work commitment.
The ceremony for the signing of petroleum concession/ exploration licence agreements for the six oil and gas blocks was attended by Federal Minister for Energy Hammad Azhar.
Petroleum Concession Director General Abdul Jabbar Memon granted petroleum concession and exploration licences for 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. The minister for energy stated that these efforts would bear fruit in the form of additional hydrocarbon reserves in the country over the next few years.
He expressed hope that the execution of exploration licence and petroleum concession agreements would not only enhance investment in the petroleum sector but would also contribute to bridging the energy demand and supply gap.
Memon highlighted that the minimum firm work commitment to these blocks was $24.68 million for a period of three years. Companies are obligated to spend a minimum of $30,000 per year in each block on social welfare schemes. Annual social welfare obligation in respect of the six blocks is $180,000.
Killa Saifullah block covering an area of 2,421.96 sq km is located in the Killa Saifullah district while Sharan block covering an area of 2,497.89 sq km is located in Killa Saifullah and Zhob districts.
Suleiman block covering an area of 2,172.89 sq km is located in Musakhel, Zhob, Killa Saifullah and Loralai districts. Sujawal South covering an area of 1914.1 sq km is located in Sujawal district.
Jhelum block covering an area of 1,524.65 sq km is located in the districts of Jhelum, Gujrat and Mandi Bahauddin while Lilla block covering an area of 2,361.12 sq km 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.
It holds the largest share in oil production at 41% and in gas production at 36% of total reserves in the country. Its percentage share in total oil and gas production in Pakistan is 47% and 29% respectively. OGDCL is the operator of 41
exploration licences and has working interest in six other exploration blocks operated by various exploration and production companies.
OGDCL is currently producing 35,805 barrels of oil per day and 1,012 million cubic feet of gas per day.
PPL, also a public limited company engaged in exploration and production activities, has 13% and 19% share respectively in the total oil and gas production in the country.
PPL is the operator in 26 exploration licences and has working interest in 17 other exploration blocks operated by various exploration and production companies.
PPL is currently producing 10,076 barrels of oil per day and 673 million cubic feet of gas per day.
MPCL is primarily an exploration and production company in the upstream segment of 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 exploration and production-related services on a commercial basis.
Mari Petroleum is the second largest gas producer in the country with 753 million cubic feet of gas per day and 1,722 barrels of oil per day.
It is the operator of six development and production leases, 11 exploration licences and owner of working interest in seven other exploration blocks operated by various exploration and production companies.