New petroleum policy will be announced next week: Jadoon

[Moin91]

ISLAMABAD: Federal Minister for petroleum and natural resources, Amanullah Jadoon has said that the new petroleum policy would be announced next week.

Talking to Geo News, the federal minister disclosed that all the stakeholders have by now given their comments to the ministry of petroleum on the earlier released draft of the new petroleum policy and the ministry next week would formally give its approval to the new petroleum policy.

Petroleum ministry sources told that the companies obtaining new licenses for the exploration of oil and gas would be given concession in fees under the new policy, while the wellhead price capped at $36 would also be abolished.

Under the new policy, petroleum companies would also be given rebates in taxes for encouraging maximum number of foreign investors investing in the Pakistan energy sector.

 

[niaz]

As of now 25 to 30% of the total Forex earning are being spent on Energy needs. We need to spud at least 100 new exploratory wells each year for the next ten years. Else we wont have money to buy oil. Energy/petroleum is the life blood of the economy and leaving it entirely to private sector is not enough. We have gas, we just need more effort to find it and if private sector wont, public sector should.

For example 15 years ago GOP ( BB 1st term) decided that all new power plants will be thru private sector. We are still at least 15 % short in electricity generation. Private sector apparently is not interested enough.

What is point of claiming that X number of villages have been electrified if all it does is to increase the duration of power cuts. I have recently heard that in Karachi theft of small electric generators is rife. ( My mother in law's standy generator was stolen when she was out for only two hours!). I would rather see more govt money spent on exploration than on new electrification.

 

[Neo]

Petroleum policy 2007: every Tom, Dick and Harry stopped from entering oil and gas business

ISLAMABAD (May 24 2007): The Petroleum ministry on Wednesday announced that Petroleum Policy 2007 was particularly meant to stop fruit merchants and retailers entering in oil and gas exploration and production business in Pakistan.

The ministry officials told the oil and gas sector players at a consultative meeting held here on the new petroleum policy that the government hired a consultant to study the changes taking place in global oil and gas market and recommend steps to make the new policy business friendly. They said the proposed policy draft was going to help the government achieve ultimate objectives.

Prime Minister Advisor on Energy, Mukhtar Ahmed and Director General of Petroleum Concessions (DGPC) Naeem Malik said that Pakistan wants to provide incentives to the oil and gas sector companies to increase its indigenous oil and gas production. But at the same time it tried to make sure by introducing a procedure of pre-qualification for the exploration and production companies that only serious quality players bid for entering into exploration business in Pakistan, they added.

On the occasion, a participant of the consultative meeting Saifullah raised the question of hard terms of conditions for the new companies and demanded of the advisor and ministry officials to have a second look of the conditions such as eight years experience for the staff and technical teams.

He also expressed concern over the pre-qualification process for the new entrants and apprehended that it would discourage new investment in Pakistan's oil and gas sector. He demanded that the Petroleum ministry should take corrective measures to make the new policy workable in real sense.

Shams Baqai of Geo Can and Mazhar Qayyum of PEPCA, the association of oil and gas producers, sought incentives for incremental and deep exploration. They also wanted a special treatment for development of low BTU gas fields.

Earlier, Additional Secretary, Shaukat Durrani briefed the participants about the salient features of the new policy. He was confident that the new policy will help Pakistan secure sizeable investment in coming years besides ensuring good return to the investors on their money. He said the government will take the role of the facilitator and provide the exploration and production companies a conducive atmosphere to help them carry out their exploration activities vigorously.

The advisor asked the DGPC to take into account the suggestions made by the participants. The draft policy will be amended in the light of suggestions/ demands offered by the representatives of the oil and gas sector companies and later presented before the federal cabinet for approval.

http://www.brecorder.com/index.php?id=568150&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Gas and oil discovered in Hyderabad district

KARACHI (May 24 2007): The Oil and Gas Development Company Limited (OGDCL) has made a gas and condensate discovery from its Exploratory Well Thora Deep No 1 in Massive Sands of Lower Goru formation in Hyderabad. According to an information sent to the Karachi Stock Exchange here on Wednesday.

It was said that the well was drilled down to the depth of 3,906 meters in Thora and Thora East Mining Lease falling in district Hyderabad of Sindh. On the basis of open hole logs, two dozens of massive sand of Lower Goru formation were selected for testing.

Both the zones were tested, out of which the second zone proved as producing zone. The short duration initial testing results are including, Choke sizes 32/64 inches, WHFP (PSI) 1880, quantity of condensate 100 bpd, quantity of gas 9.90 mmscfd, quantity of water 120 bwpd and API gravity 44.9.

http://www.brecorder.com/index.php?id=568153&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

May 24, 2007

New reserves of oil, gas found in Sindh

KARACHI, May 23: The Oil and Gas Development Company Ltd (OGDCL) announced a new discovery on Wednesday, bringing the total number of discoveries to five over the past two months.

The discoveries will push OGDCL daily oil and gas output up by 1,746 barrels per day and 44.12 million metric cubic feet, respectively.

According to the company, the discovery was made in Thora and Thora East Mining Lease, situated in southern Sindh, which increased the company’s oil production by 100 barrels per day and gas production by 9.9 million metric cubic feet per day.

In April, OGDCL’s average daily oil and gas production stood at 39,099 barrels and 881 million metric cubic feet, with the maximum daily output touching 41,130 barrels and 892 million metric cubic feet, according to the company’s spokesman.

OGDCL, which is also listed on the London Stock Exchange, said in October it planned to invest about $2 billion over the next three years on exploration and production activities. It also hopes to enter its first overseas exploration venture this year.—Reuters

http://dawn.com/2007/05/24/top8.htm