Oil and Gas Exploration in Pakistan and other energy sources
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PAKISTAN - THE REGIONAL GATEWAY FOR ENERGY
With Pakistan's economic growth averaging over 6.5% in the last few years, the requirement of Energy in Pakistan has significantly increased. Every industry/household in Pakistan requires more Energy and therefore in order to keep pace with the industrial development, the Government of Pakistan has dveveloped a comprehensive plan for the identification and acquisition of the required Energy resources over the next decade.
To meet the energy requirements of the country, and in order to achieve the up-gradation and construction of multi billion dollar projects the Government of Pakistan has started the process of privatization/liberalization of the Energy industry. Currently the private sector is taking the leading role in all Energy related projects thereby attracting one of the highest levels of Foreign Direct Investment in this sector.
Due to its strategic location, Pakistan is also positioning to become a major energy hub in the region, serving as a corridor for the international supply routes of energy from the landlocked Central Asian States / Middle East to the energy starved markets of India and China.
POGEE, for the fifth successful year in 2007, has become the perfect interactive platform in bringing together the leading suppliers of machinery and technology for this emerging regional energy industry.
Please check this link to find out more about POGEE, the site rocks!
http://www.pogeepakistan.com/2ndpage.htm
With Pakistan's economic growth averaging over 6.5% in the last few years, the requirement of Energy in Pakistan has significantly increased. Every industry/household in Pakistan requires more Energy and therefore in order to keep pace with the industrial development, the Government of Pakistan has dveveloped a comprehensive plan for the identification and acquisition of the required Energy resources over the next decade.
To meet the energy requirements of the country, and in order to achieve the up-gradation and construction of multi billion dollar projects the Government of Pakistan has started the process of privatization/liberalization of the Energy industry. Currently the private sector is taking the leading role in all Energy related projects thereby attracting one of the highest levels of Foreign Direct Investment in this sector.
Due to its strategic location, Pakistan is also positioning to become a major energy hub in the region, serving as a corridor for the international supply routes of energy from the landlocked Central Asian States / Middle East to the energy starved markets of India and China.
POGEE, for the fifth successful year in 2007, has become the perfect interactive platform in bringing together the leading suppliers of machinery and technology for this emerging regional energy industry.
Please check this link to find out more about POGEE, the site rocks!
http://www.pogeepakistan.com/2ndpage.htm
INDUSTRY OVERVIEW
OIL
Total Resource Potential: 27 Billion Barrels
Crude Oil Refining Capacity: 12.82 Million Tones/Year
Consumption: 18.5 Million Tonnes/ Year
Imports: 14 Million Tonnes/Year
GAS
Total Resource Potential: 282 Tcf
Production: 3,825 Mmcf/d
Distribution Network: 68,000 Km
Transmission Network: 9063 Km
Gas Domestic Consumers: 4.41 Million
Gas Commercial Consumers: 70,000
COAL
Total Proven Reserves: 185 Billion Tonnes
Production: 4.06 Million
Consumption: 5.60 Million Tonnes
Total Generation Capacity 19439 MW
Sectoral Share of Energy Consumption Household: 23 %
Transportation: 34%
Industrial: 34%
Agriculture: 3%
Commercial: 3%
Other Government: 3%
Fuel Share of Energy Consumption Oil: 29.4%
Natural Gas: 50.4%
Hydroelectricity: 11%
Coal: 6.7%
Nuclear: 1.2%
Total Supply to the Energy Mix 56.5 Million TOE
Average Growth in Energy Consumption 10% per Annum
http://www.pogeepakistan.com/industry overview.htm
OIL
Total Resource Potential: 27 Billion Barrels
Crude Oil Refining Capacity: 12.82 Million Tones/Year
Consumption: 18.5 Million Tonnes/ Year
Imports: 14 Million Tonnes/Year
GAS
Total Resource Potential: 282 Tcf
Production: 3,825 Mmcf/d
Distribution Network: 68,000 Km
Transmission Network: 9063 Km
Gas Domestic Consumers: 4.41 Million
Gas Commercial Consumers: 70,000
COAL
Total Proven Reserves: 185 Billion Tonnes
Production: 4.06 Million
Consumption: 5.60 Million Tonnes
Total Generation Capacity 19439 MW
Sectoral Share of Energy Consumption Household: 23 %
Transportation: 34%
Industrial: 34%
Agriculture: 3%
Commercial: 3%
Other Government: 3%
Fuel Share of Energy Consumption Oil: 29.4%
Natural Gas: 50.4%
Hydroelectricity: 11%
Coal: 6.7%
Nuclear: 1.2%
Total Supply to the Energy Mix 56.5 Million TOE
Average Growth in Energy Consumption 10% per Annum
http://www.pogeepakistan.com/industry overview.htm
Pakistan is on a cusp it seems, it will either be a net importer or a hub. Hopefully Pakistan can increase its prodiuction faster than consumption or your economy will take a hit as the prices keep climbing. However if you can keep production in line with consumption then you can offer goods and services not tied to the global energy market a big advantage ove rpalces that are net importers.
Actually I'm convinced that we're siting on huge oil and gas reserves and will atleast become selfreliant in near future.
Next year we'll start drilling in Balochistan, something we haven't done on large scale yet due some stupid agreement with Iran.
Makran coastal area is believed to have potential.
Next year we'll start drilling in Balochistan, something we haven't done on large scale yet due some stupid agreement with Iran.
Makran coastal area is believed to have potential.
Friday, June 08, 2007
Government all set to start 969MW hydroelectric project
By Sajid Chaudhry
ISLAMABAD: The government is all set to start physical work for the construction of much awaited $2.14 billion Neelum Jhelum Hydroelectric Project in the next fiscal year 2007-08, an official told Daily Times on Thursday.
The construction of Neelum Jhelum Hydroelectric Project would enable Pakistan to get water usage rights over River Neelum. In the event of any further delay in the construction of the said project, Pakistan would have to forfeit its rights over River Neelum and allow India to use these waters for power generation, said the official.
The official explained that the PC-1 cost of the project was estimated at $1.4 billion and the total cost of the project has been estimated at $2.14 billion. Government of Pakistan has approached Kuwait Fund and French financers M/S BNP Paribas for arrangement of the foreign exchange component of $785 million.
The project is estimated to have an installed capacity of 969 MW and an annual energy generation capability of 5150 kWh. The project would be connected with the National Grid at Rawat through two separate transmission lines of 500 kV.
Water and Power Development Authority (WAPDA) has already approved award of the contract to the lowest bidder ie CGGC-CMEC on March 9, 2007 at the contract price of Rs 90.885 billion including foreign exchange component of $785 million or Rs 47.089 billion.
The Government had made an allocation of Rs 5 billion for the project in this yearâs Public Sector Development Program (PSDP) and a sizeable amount is expected to be allocated for this project in the PSDP for the next fiscal year, the official added.
Located in the vicinity of Muzaffarabad, Azad Jammu and Kashmir, the project is scheduled to be completed in 8 years after the start of physical work.
The official informed that around 2,500 kanals of land would be acquired for the project and in the first phase acquisition of 1123 Kanals of private land is under way. WAPDA has already transferred Rs 336 million to the Azad Jammu and Kashmir government as provisional cost of private land being acquired by it.
http://www.dailytimes.com.pk/default.asp?page=2007\06\08\story_8-6-2007_pg5_6
Government all set to start 969MW hydroelectric project
By Sajid Chaudhry
ISLAMABAD: The government is all set to start physical work for the construction of much awaited $2.14 billion Neelum Jhelum Hydroelectric Project in the next fiscal year 2007-08, an official told Daily Times on Thursday.
The construction of Neelum Jhelum Hydroelectric Project would enable Pakistan to get water usage rights over River Neelum. In the event of any further delay in the construction of the said project, Pakistan would have to forfeit its rights over River Neelum and allow India to use these waters for power generation, said the official.
The official explained that the PC-1 cost of the project was estimated at $1.4 billion and the total cost of the project has been estimated at $2.14 billion. Government of Pakistan has approached Kuwait Fund and French financers M/S BNP Paribas for arrangement of the foreign exchange component of $785 million.
The project is estimated to have an installed capacity of 969 MW and an annual energy generation capability of 5150 kWh. The project would be connected with the National Grid at Rawat through two separate transmission lines of 500 kV.
Water and Power Development Authority (WAPDA) has already approved award of the contract to the lowest bidder ie CGGC-CMEC on March 9, 2007 at the contract price of Rs 90.885 billion including foreign exchange component of $785 million or Rs 47.089 billion.
The Government had made an allocation of Rs 5 billion for the project in this yearâs Public Sector Development Program (PSDP) and a sizeable amount is expected to be allocated for this project in the PSDP for the next fiscal year, the official added.
Located in the vicinity of Muzaffarabad, Azad Jammu and Kashmir, the project is scheduled to be completed in 8 years after the start of physical work.
The official informed that around 2,500 kanals of land would be acquired for the project and in the first phase acquisition of 1123 Kanals of private land is under way. WAPDA has already transferred Rs 336 million to the Azad Jammu and Kashmir government as provisional cost of private land being acquired by it.
http://www.dailytimes.com.pk/default.asp?page=2007\06\08\story_8-6-2007_pg5_6
June 09, 2007
New power projects to overcome shortage
By Ihtashamul Haque
ISLAMABAD, June 8: Conceding the obvious power crisis across the country, the prime minister's adviser on Finance promised on Friday to bring new power projects on stream shortly, including KESC's $150 million project to supply additional 750MW of electricity to Karachi where power cuts have caused riots.
"Power crisis is a matter of concern for which we need to have more power projects, particularly hydel projects. But since there is no consensus on building the Kalabagh Dam, these cannot be started," Dr Shah told reporters.
Releasing the Economic Survey 2006-07 at the news conference, Dr Shah blamed the Karachi Electric Supply Company (KESC) for failing to stop transmission and line losses and electricity theft due to which Karachi and some other parts of Sindh had been subjected to 14-16 hours unannounced load shedding daily.
He said it will take two to three years to resolve the current power crisis by establishing a number of new power projects.
The current 1500MW power shortfall is said to be increasing to 2500MW next year for which no planning has been done by the government.
Dr Shah said that the KESC existing power project at Bin Qasim was being expanded to have additional 750MW of electricity for which the Asian Development Bank (ADB) will provide $150 million financing.
The adviser said that thermal power generation was an expensive activity which cost 12 to 14 cents for each electricity unit against 4-5 cents of hydel generation.
He said the government would build Bhasha Dam, Akori Dam, Kurrum Tangi and Monda dam and Kalabagh Dam to have enough power for industry as well as for agriculture. "But I told you that the Kalabagh Dam is a problem in a sense that we cannot initiate in the absence of consensus among all the political parties of the country," he added.
He referred to the Economic Survey, which said that in order to enhance and strengthen its power generation capacity, Wapda has undertaken feasibility studies and construction work for a number of hydro/thermal power projects. He said work on Allai Khawar (21MW), Khan Khawar (72MW) and Dubair Khawar (130MW) hydro projects is in full swing. Implementation on Nelum-Jhelum (969MW) hydro project will commence shortly. Feasibility studies of a number of the hydropower projects are underway including Bhungi (5400MW) and Kohala (600MW).
After the completion of these projects, the installed capacity is expected to increase from 17431MW to about 42000MW by the end of the financial year 2016.
http://www.dawn.com/2007/06/09/ebr1.htm
New power projects to overcome shortage
By Ihtashamul Haque
ISLAMABAD, June 8: Conceding the obvious power crisis across the country, the prime minister's adviser on Finance promised on Friday to bring new power projects on stream shortly, including KESC's $150 million project to supply additional 750MW of electricity to Karachi where power cuts have caused riots.
"Power crisis is a matter of concern for which we need to have more power projects, particularly hydel projects. But since there is no consensus on building the Kalabagh Dam, these cannot be started," Dr Shah told reporters.
Releasing the Economic Survey 2006-07 at the news conference, Dr Shah blamed the Karachi Electric Supply Company (KESC) for failing to stop transmission and line losses and electricity theft due to which Karachi and some other parts of Sindh had been subjected to 14-16 hours unannounced load shedding daily.
He said it will take two to three years to resolve the current power crisis by establishing a number of new power projects.
The current 1500MW power shortfall is said to be increasing to 2500MW next year for which no planning has been done by the government.
Dr Shah said that the KESC existing power project at Bin Qasim was being expanded to have additional 750MW of electricity for which the Asian Development Bank (ADB) will provide $150 million financing.
The adviser said that thermal power generation was an expensive activity which cost 12 to 14 cents for each electricity unit against 4-5 cents of hydel generation.
He said the government would build Bhasha Dam, Akori Dam, Kurrum Tangi and Monda dam and Kalabagh Dam to have enough power for industry as well as for agriculture. "But I told you that the Kalabagh Dam is a problem in a sense that we cannot initiate in the absence of consensus among all the political parties of the country," he added.
He referred to the Economic Survey, which said that in order to enhance and strengthen its power generation capacity, Wapda has undertaken feasibility studies and construction work for a number of hydro/thermal power projects. He said work on Allai Khawar (21MW), Khan Khawar (72MW) and Dubair Khawar (130MW) hydro projects is in full swing. Implementation on Nelum-Jhelum (969MW) hydro project will commence shortly. Feasibility studies of a number of the hydropower projects are underway including Bhungi (5400MW) and Kohala (600MW).
After the completion of these projects, the installed capacity is expected to increase from 17431MW to about 42000MW by the end of the financial year 2016.
http://www.dawn.com/2007/06/09/ebr1.htm
but then again the amount is over total 50 TCF.Supply from energy sources up 50.2 percent in 10 years
ISLAMABAD (June 09 2007): The government said on Friday that supply from primary energy sources had increased by 50.2 percent during last ten years. According to Economic Survey 2006-07, the per capita availability rose from 0.295 ton of oil equivalent (TOE) in 1996-97 to 0.372 TOE in 2005-06--an increase of 26.1 percent--in last ten years.
The energy supply during first nine months of the current fiscal year increased to 45.35 million TOE from 42.44 million TOE, or 6.8 percent, as compared to last year. According to the survey, the balance recoverable reserves of crude oil, as on January 1, 2007, were estimated at 317.82 million barrels.
The average crude oil production during July-March was 66,485 barrels as against 65,385 barrels per day during the corresponding period of last year, showing an increase of 1.68 percent.
Production of crude oil per day increased to 66,485 barrels during July-March 2006-07 from 65,385 barrels per day during the same period of last year, showing an increase of 1.7 percent.
The overall production of crude oil increased to 18.2 million barrels during July-March 2006-07 from 17.9 million barrels during the corresponding period of last year, showing an increase of 1.7 percent.
On average, the transport sector consumed 50.7 percent of petroleum products, followed by power sector (32.1 percent), industry (11.4 percent), household (2.2 percent), other government agencies (2.3 percent), and agriculture (1.3 percent) during last 10 years ie 1996-97 to 2005-06.
However, during July-March 2006-07, crude oil production declined by 2.21 percent from the Northern region and the production efficiency increased in Southern region by 4.81 percent as compared to the same period of last year.
It further said that Pakistan''s economy has been growing at an average rate of over 7.6 percent per annum over last three years and the government was making efforts to sustain growth momentum, addressing the challenges of rising energy demand. These include import of piped natural gas from Iran and Turkmenistan, import of LNG; increase in oil and gas exploration, utilising 175 billion tones of Thar coal reserves; setting up of nuclear power plants; exploiting the affordable alternative energy sources and overhauling existing power generation plants to enhance their production capacity.
The average production of natural gas per day stood at 3,876 million cubic feet during July-March 2006- 07, as compared to 3,825 million cubic feet over the same period of last year, showing an increase of 1.3 percent.
The overall production of gas increased to 1,062,124 million cubic feet during July-March 2006-07 as compared to 1,048,190 million cubic feet daily in the same period of last year, showing an increase of 1.3 percent.
On average, the power sector consumes 36.4 percent of gas, followed by fertiliser (21.6 percent), industrial sector (19.1 percent), household (17.8 percent), commercial sector (2.7 percent) and cement (1.1 percent) during the last 10 years ie 1996-97 to 2005-06.
Total installed capacity generation witnessed no change during July-March 2006-07, as it was 19,440 MW in first nine months of current financial year. Total installed capacity of Wapda stood at 11,363 mw during July-March 2006-07, of which hydel accounted for 56.9 percent or 6,463 mw thermal accounts for 43.1 percent or 4,900 MW.
During first three quarters of current fiscal year, 71,033 GWh electricity was generated as against 66,110 GWh produced in the same period of last year showing an increase of 7.4 per cent. The number of villages electrified increased to 113,605 by March 2007 from 103,231 up to 2005-06, showing an increase of 10 percent.
Presently, some 1414 CNG stations are operating in 85 cities and towns. By March 2007 about 1.35 million vehicles were converted to CNG as compared to one million vehicles during the same period last year, showing an increase of 35 percent. On average 29,167 vehicles are being converted to CNG every month. With these developments, Pakistan has become the leading country in Asia and the third largest user of CNG in the world, after Argentina and Brazil.
http://www.brecorder.com/index.php?id=575437&currPageNo=1&query=&search=&term=&supDate=
ISLAMABAD (June 09 2007): The government said on Friday that supply from primary energy sources had increased by 50.2 percent during last ten years. According to Economic Survey 2006-07, the per capita availability rose from 0.295 ton of oil equivalent (TOE) in 1996-97 to 0.372 TOE in 2005-06--an increase of 26.1 percent--in last ten years.
The energy supply during first nine months of the current fiscal year increased to 45.35 million TOE from 42.44 million TOE, or 6.8 percent, as compared to last year. According to the survey, the balance recoverable reserves of crude oil, as on January 1, 2007, were estimated at 317.82 million barrels.
The average crude oil production during July-March was 66,485 barrels as against 65,385 barrels per day during the corresponding period of last year, showing an increase of 1.68 percent.
Production of crude oil per day increased to 66,485 barrels during July-March 2006-07 from 65,385 barrels per day during the same period of last year, showing an increase of 1.7 percent.
The overall production of crude oil increased to 18.2 million barrels during July-March 2006-07 from 17.9 million barrels during the corresponding period of last year, showing an increase of 1.7 percent.
On average, the transport sector consumed 50.7 percent of petroleum products, followed by power sector (32.1 percent), industry (11.4 percent), household (2.2 percent), other government agencies (2.3 percent), and agriculture (1.3 percent) during last 10 years ie 1996-97 to 2005-06.
However, during July-March 2006-07, crude oil production declined by 2.21 percent from the Northern region and the production efficiency increased in Southern region by 4.81 percent as compared to the same period of last year.
It further said that Pakistan''s economy has been growing at an average rate of over 7.6 percent per annum over last three years and the government was making efforts to sustain growth momentum, addressing the challenges of rising energy demand. These include import of piped natural gas from Iran and Turkmenistan, import of LNG; increase in oil and gas exploration, utilising 175 billion tones of Thar coal reserves; setting up of nuclear power plants; exploiting the affordable alternative energy sources and overhauling existing power generation plants to enhance their production capacity.
The average production of natural gas per day stood at 3,876 million cubic feet during July-March 2006- 07, as compared to 3,825 million cubic feet over the same period of last year, showing an increase of 1.3 percent.
The overall production of gas increased to 1,062,124 million cubic feet during July-March 2006-07 as compared to 1,048,190 million cubic feet daily in the same period of last year, showing an increase of 1.3 percent.
On average, the power sector consumes 36.4 percent of gas, followed by fertiliser (21.6 percent), industrial sector (19.1 percent), household (17.8 percent), commercial sector (2.7 percent) and cement (1.1 percent) during the last 10 years ie 1996-97 to 2005-06.
Total installed capacity generation witnessed no change during July-March 2006-07, as it was 19,440 MW in first nine months of current financial year. Total installed capacity of Wapda stood at 11,363 mw during July-March 2006-07, of which hydel accounted for 56.9 percent or 6,463 mw thermal accounts for 43.1 percent or 4,900 MW.
During first three quarters of current fiscal year, 71,033 GWh electricity was generated as against 66,110 GWh produced in the same period of last year showing an increase of 7.4 per cent. The number of villages electrified increased to 113,605 by March 2007 from 103,231 up to 2005-06, showing an increase of 10 percent.
Presently, some 1414 CNG stations are operating in 85 cities and towns. By March 2007 about 1.35 million vehicles were converted to CNG as compared to one million vehicles during the same period last year, showing an increase of 35 percent. On average 29,167 vehicles are being converted to CNG every month. With these developments, Pakistan has become the leading country in Asia and the third largest user of CNG in the world, after Argentina and Brazil.
http://www.brecorder.com/index.php?id=575437&currPageNo=1&query=&search=&term=&supDate=
June 10, 2007
Rs12.6bn earmarked for atomic energy
ISLAMABAD, June 9: The government has earmarked a capital outlay of Rs12.6 billion for atomic energy development in the 2007-08 federal budget which is a 29.8 per cent increase over the allocation of Rs9.7 billion in the outgoing year.
According to the budget documents, the allocations will be spent on research and development and general public services.
Pakistan Atomic Energy Commission Chairman Anwar Ali recently said that the government had assigned the commission the task of generating 8,800MW nuclear power by 2030.
The estimated capacity of each plant would be 1000MW, he said, adding that the joint maintenance and operations of such plants would be easy and economical.
He said that six sites were being considered in various parts of the country to set up the plants and the PAEC was in contact with multiple sources for negotiations to execute the programme.
http://www.dawn.com/2007/06/10/top18.htm
Rs12.6bn earmarked for atomic energy
ISLAMABAD, June 9: The government has earmarked a capital outlay of Rs12.6 billion for atomic energy development in the 2007-08 federal budget which is a 29.8 per cent increase over the allocation of Rs9.7 billion in the outgoing year.
According to the budget documents, the allocations will be spent on research and development and general public services.
Pakistan Atomic Energy Commission Chairman Anwar Ali recently said that the government had assigned the commission the task of generating 8,800MW nuclear power by 2030.
The estimated capacity of each plant would be 1000MW, he said, adding that the joint maintenance and operations of such plants would be easy and economical.
He said that six sites were being considered in various parts of the country to set up the plants and the PAEC was in contact with multiple sources for negotiations to execute the programme.
http://www.dawn.com/2007/06/10/top18.htm
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what is the ammount of funding going into development of alternate power resources like wind, tide, solar energy etc
Eni announces new gas discoveries
ROME (June 17 2007): Italy energy giant Eni has announced new natural gas discoveries in Pakistan. Eni, through its subsidiaries in Pakistan, is largest foreign gas producer in the country, with a net share of approximately 55,000 barrels of oil equivalent per day. Eni has been in the country since 2000.
It has interest in 7 producing fields, all with growth potential, and in 12 onshore exploration blocks, 5 of which are operated. Recognising high potential of this area, Eni recently acquired 3 offshore exploration blocks in Indus Delta.
One of its latest successes relates to Tajjal 1 exploration well, which reached new gas in Gambat Exploration Licence, in Sindh province. Gambat Licence is managed by joint venture composed of Eni (30 percent), OMV (35 percent Operator), PPL (30 percent) and GHPL (5 percent). The exploration well has been drilled south of Sawan producing field, reaching total depth of 3,845 m and encountering gas at different sand levels.
Eni recently drilled Kadanwari 18 well, finding a gas-bearing formation at depth of about 3,400 m, in a rock formation independent from main field. "The success of Kadanwari 18 well represents important addition of reserves to main field, and indicates new prospects in area," Italian company said.
Eni (18.42 percent) is Operator of Kadanwari Production lease (with Premier Kufpec Pakistan 31.58 percent and OGDCL 50 percent as partners). It recently drilled Latif 1 exploration well reached total depth of 3,520 m and encountered three hydrocarbon layers. Joint Venture is now considering further appraisal activities to delineate extent of this discovery more accurately.
It is located near Kadanwari producing field, operated by Eni. Joint Venture of Latif Exploration Licence is composed of Eni (33.3 percent), OMV (33.4 percent Operator) and PPL (33.3 percent). To strengthen, expand on its existing activities, Eni plans to invest $170 million in Pakistan in next 3 years, mainly on development activities and $110 million for new exploration.
http://www.brecorder.com/index.php?id=578735&currPageNo=1&query=&search=&term=&supDate=
ROME (June 17 2007): Italy energy giant Eni has announced new natural gas discoveries in Pakistan. Eni, through its subsidiaries in Pakistan, is largest foreign gas producer in the country, with a net share of approximately 55,000 barrels of oil equivalent per day. Eni has been in the country since 2000.
It has interest in 7 producing fields, all with growth potential, and in 12 onshore exploration blocks, 5 of which are operated. Recognising high potential of this area, Eni recently acquired 3 offshore exploration blocks in Indus Delta.
One of its latest successes relates to Tajjal 1 exploration well, which reached new gas in Gambat Exploration Licence, in Sindh province. Gambat Licence is managed by joint venture composed of Eni (30 percent), OMV (35 percent Operator), PPL (30 percent) and GHPL (5 percent). The exploration well has been drilled south of Sawan producing field, reaching total depth of 3,845 m and encountering gas at different sand levels.
Eni recently drilled Kadanwari 18 well, finding a gas-bearing formation at depth of about 3,400 m, in a rock formation independent from main field. "The success of Kadanwari 18 well represents important addition of reserves to main field, and indicates new prospects in area," Italian company said.
Eni (18.42 percent) is Operator of Kadanwari Production lease (with Premier Kufpec Pakistan 31.58 percent and OGDCL 50 percent as partners). It recently drilled Latif 1 exploration well reached total depth of 3,520 m and encountered three hydrocarbon layers. Joint Venture is now considering further appraisal activities to delineate extent of this discovery more accurately.
It is located near Kadanwari producing field, operated by Eni. Joint Venture of Latif Exploration Licence is composed of Eni (33.3 percent), OMV (33.4 percent Operator) and PPL (33.3 percent). To strengthen, expand on its existing activities, Eni plans to invest $170 million in Pakistan in next 3 years, mainly on development activities and $110 million for new exploration.
http://www.brecorder.com/index.php?id=578735&currPageNo=1&query=&search=&term=&supDate=
Prospects exist for Pak-Russia cooperation development: envoy
LAHORE (June 17 2007): Sergey N Peskov, Ambassador of Russian Federation in Pakistan, has said that there is substantial potential for the development of Pak-Russian co-operation in the areas of oil, gas, modernisation of Soviet-built enterprises and construction industry.
Speaking at a dinner hosted last night by Habib Ahmad, Managing Director, Habib Rafiq Group, he said that there were prospects for mutual investments, co-operation in telecommunication sector and high technologies. He said that in the near future, "we will have to create necessary legal base for our co-operation in these sectors and other areas, in particular to sign agreements on avoidance of double taxation and on promotion and mutual protection of capital investment.
Secretary General, Pakistan Institute of World Peace, Zulfiqar Ahmad, senior vice president Dr Shafiq Jallandhry and other elite of the town were also present on the occasion.
He said that after having passed many hurdles of a transition period, nowadays Russia builds up with new institutions based on principles of a real democracy, which is efficient and based on market economy, supremacy of law and accountability of authority to society.
The envoy said that with the real GDP growth at 60 percent since 2000, Russia's economy has grown at an average rate of about 7 percent per annum during the last six years, thus positioning itself as one the fastest growing markets.
He said there was macroeconomic stability; inflation was less than 9 percent and foreign debt less than 20 percent of the GDP. He said that in 2006 Russia became the 10th country in the world whose GDP exceeded one trillion US dollars. He said that Russia took first place in oil production in the world. "From 2001 to 2007 our position in the rating of the largest economies of the world improved by 10 points."
He stressed that Russia had turned into creditor country from debtor country. He said now there is no need for official credits today. He expressed his gratitude to the Association of Pakistani graduates from Russia and CIS for its kind invitation.
The Ambassador said that the second world forum of foreign graduates of the Soviet and Russian institutes of higher education would be held from October 3 to 5 in Moscow, and members of this association would represent Pakistan.
Earlier, Habib Ahmad in his address of welcome said that there was vast scope of joint ventures in different areas of mutual interests, and Russian private sector has potential scope for investment in power sector of Pakistan.
http://www.brecorder.com/index.php?id=578837&currPageNo=1&query=&search=&term=&supDate=
LAHORE (June 17 2007): Sergey N Peskov, Ambassador of Russian Federation in Pakistan, has said that there is substantial potential for the development of Pak-Russian co-operation in the areas of oil, gas, modernisation of Soviet-built enterprises and construction industry.
Speaking at a dinner hosted last night by Habib Ahmad, Managing Director, Habib Rafiq Group, he said that there were prospects for mutual investments, co-operation in telecommunication sector and high technologies. He said that in the near future, "we will have to create necessary legal base for our co-operation in these sectors and other areas, in particular to sign agreements on avoidance of double taxation and on promotion and mutual protection of capital investment.
Secretary General, Pakistan Institute of World Peace, Zulfiqar Ahmad, senior vice president Dr Shafiq Jallandhry and other elite of the town were also present on the occasion.
He said that after having passed many hurdles of a transition period, nowadays Russia builds up with new institutions based on principles of a real democracy, which is efficient and based on market economy, supremacy of law and accountability of authority to society.
The envoy said that with the real GDP growth at 60 percent since 2000, Russia's economy has grown at an average rate of about 7 percent per annum during the last six years, thus positioning itself as one the fastest growing markets.
He said there was macroeconomic stability; inflation was less than 9 percent and foreign debt less than 20 percent of the GDP. He said that in 2006 Russia became the 10th country in the world whose GDP exceeded one trillion US dollars. He said that Russia took first place in oil production in the world. "From 2001 to 2007 our position in the rating of the largest economies of the world improved by 10 points."
He stressed that Russia had turned into creditor country from debtor country. He said now there is no need for official credits today. He expressed his gratitude to the Association of Pakistani graduates from Russia and CIS for its kind invitation.
The Ambassador said that the second world forum of foreign graduates of the Soviet and Russian institutes of higher education would be held from October 3 to 5 in Moscow, and members of this association would represent Pakistan.
Earlier, Habib Ahmad in his address of welcome said that there was vast scope of joint ventures in different areas of mutual interests, and Russian private sector has potential scope for investment in power sector of Pakistan.
http://www.brecorder.com/index.php?id=578837&currPageNo=1&query=&search=&term=&supDate=
Ibad lays foundation stone of KESC 220 megawatts plant
KARACHI (June 17 2007): Sindh Governor Dr Ishratul Ibad Khan laid the foundation stone of a 220 MW Power Plant at Korangi thermal power station of the Karachi Electric Supply Corporation (KESC) generation plan Phase-I, to meet the growing demand for energy.
Addressing at the foundation stone-laying ceremony organised by the KESC here on Saturday, Dr Ibad asked the KESC management to further invest in power generation projects and improve existing network infrastructure.
"The government will keep an eye on the Corporation performance to ensure that Karachiites will not suffer, especially the residential consumers," he said, adding: "The KESC serves as the backbone to Karachi, one of the largest metropolises of the world with a population of 14 million and a growth rate of 5 percent."
"Karachi alone accounts for 15 percent of country's GDP and over 60 percent of the country's industrial production with per capita income estimated at $2,205, which happens to be 200 percent above the national average," he informed.
The governor said: "Considering this city as the heart of the country, KESC energises it, as it empowers the industrial, corporate and domestic sectors of the city and in return the city plays an indispensable role in where Pakistan stands today in terms of economic growth."
The KESC has a customer base of 1.8 million, historically growing at 5 percent, with an expected acceleration in growth rate to 8 percent due to robust economic indicators. The Corporation has exclusive rights to distribute electricity in a 6,000 sq.km area reaching across Karachi from Gharo to Vinder. It is the only electricity utility in the country, which is allowed to own power generation facilities, making it the only integrated utility in the country.
The challenge that stood before the government in privatisation of KESC was tri-faceted; first, to overcome the financial deficit since 1999, the KESC had been incurring losses to the government, which has been offering subsidies to sustain the Corporation.
Secondly, to overcome the power supply deficit, this included load shedding issues emerging due to shortage of generation, overloading of grid transformers and frequent breakdowns due to outdated distribution systems.
Realising that the Corporation was being sustained on subsidies, it was not feasible for the government to revolutionise the technological infrastructure on which the KESC was standing. Still, we could not leave it unattended and unimproved. So, the government turned to the third and most important face of its strategy, which was to overcome the trust deficit.
"Our objective was to regain the trust of the consumers in the KESC for becoming an affordable and reliable source of electricity and to instate the trust of local and foreign investors in it for being an organisation worth investing in and thus it was offered to the private sector for investment influx, profitability and a corporate transformation," he added.
Earlier, Chairman, Board of Directors of KESC, AbdulAziz Aljomaih said: "At the time of acquiring KESC, we were aware of the fact that we will be faced with political, commercial and technical challenges."
"We still went ahead with the acquisition because we believed that in the long run, this asset will provide good returns. As a Saudi establishment, we would like to assure our Pakistani brothers that we are in Pakistan with a long-term commitment to be a part of the social and economic growth of the country and for that reason, KESC was the perfect acquisition being the economic powerhouse of Karachi."
At the same time, we were aware of the fact that KESC will require financial support for operational deficit and capital expansion program, if we were to meet the energy demand of Karachi.
In this perspective, to meet our financial commitments and as a part of the acquisition requirement, we committed to injecting $100 million in the form of preferred stock. At the same time, we have also provided financial guarantee of $50 million to support the operational deficit of the company, he added.
"We have not provided financial support and have sold the shares to a third party, we would like to comment that for the last one year, we have been working with multilateral agencies like IFC and ADB, together with the consortium of local banks to fund the capital expansion plan of three years amounting to over 800 million US dollars that will enhance the existing generation and the infrastructure of the company," he added.
In addition to this, a total debt fund of over $500 million, as part of the capital expansion program has been raised by the sponsors without any guarantee from the Government of Pakistan and a weak balance sheet of the KESC.
AbdulAziz Aljomaih said: "The funding will bring new generation of 780 MW by 2009. For this purpose, we have already given out a contract of 220 MW, foundation laying ceremony of which is being witnessed here today. The Board is now in the process of evaluating the final bidding of 560 MW, which will be awarded in the next couple of months."
He said: "Our three-year Rehabilitation and Capital Expansion Program is complete, our network reliability will improve from the current 70 percent to 90 percent by 2008 along with our own generation by over 1,000 MW."
http://www.brecorder.com/index.php?id=578822&currPageNo=1&query=&search=&term=&supDate=
KARACHI (June 17 2007): Sindh Governor Dr Ishratul Ibad Khan laid the foundation stone of a 220 MW Power Plant at Korangi thermal power station of the Karachi Electric Supply Corporation (KESC) generation plan Phase-I, to meet the growing demand for energy.
Addressing at the foundation stone-laying ceremony organised by the KESC here on Saturday, Dr Ibad asked the KESC management to further invest in power generation projects and improve existing network infrastructure.
"The government will keep an eye on the Corporation performance to ensure that Karachiites will not suffer, especially the residential consumers," he said, adding: "The KESC serves as the backbone to Karachi, one of the largest metropolises of the world with a population of 14 million and a growth rate of 5 percent."
"Karachi alone accounts for 15 percent of country's GDP and over 60 percent of the country's industrial production with per capita income estimated at $2,205, which happens to be 200 percent above the national average," he informed.
The governor said: "Considering this city as the heart of the country, KESC energises it, as it empowers the industrial, corporate and domestic sectors of the city and in return the city plays an indispensable role in where Pakistan stands today in terms of economic growth."
The KESC has a customer base of 1.8 million, historically growing at 5 percent, with an expected acceleration in growth rate to 8 percent due to robust economic indicators. The Corporation has exclusive rights to distribute electricity in a 6,000 sq.km area reaching across Karachi from Gharo to Vinder. It is the only electricity utility in the country, which is allowed to own power generation facilities, making it the only integrated utility in the country.
The challenge that stood before the government in privatisation of KESC was tri-faceted; first, to overcome the financial deficit since 1999, the KESC had been incurring losses to the government, which has been offering subsidies to sustain the Corporation.
Secondly, to overcome the power supply deficit, this included load shedding issues emerging due to shortage of generation, overloading of grid transformers and frequent breakdowns due to outdated distribution systems.
Realising that the Corporation was being sustained on subsidies, it was not feasible for the government to revolutionise the technological infrastructure on which the KESC was standing. Still, we could not leave it unattended and unimproved. So, the government turned to the third and most important face of its strategy, which was to overcome the trust deficit.
"Our objective was to regain the trust of the consumers in the KESC for becoming an affordable and reliable source of electricity and to instate the trust of local and foreign investors in it for being an organisation worth investing in and thus it was offered to the private sector for investment influx, profitability and a corporate transformation," he added.
Earlier, Chairman, Board of Directors of KESC, AbdulAziz Aljomaih said: "At the time of acquiring KESC, we were aware of the fact that we will be faced with political, commercial and technical challenges."
"We still went ahead with the acquisition because we believed that in the long run, this asset will provide good returns. As a Saudi establishment, we would like to assure our Pakistani brothers that we are in Pakistan with a long-term commitment to be a part of the social and economic growth of the country and for that reason, KESC was the perfect acquisition being the economic powerhouse of Karachi."
At the same time, we were aware of the fact that KESC will require financial support for operational deficit and capital expansion program, if we were to meet the energy demand of Karachi.
In this perspective, to meet our financial commitments and as a part of the acquisition requirement, we committed to injecting $100 million in the form of preferred stock. At the same time, we have also provided financial guarantee of $50 million to support the operational deficit of the company, he added.
"We have not provided financial support and have sold the shares to a third party, we would like to comment that for the last one year, we have been working with multilateral agencies like IFC and ADB, together with the consortium of local banks to fund the capital expansion plan of three years amounting to over 800 million US dollars that will enhance the existing generation and the infrastructure of the company," he added.
In addition to this, a total debt fund of over $500 million, as part of the capital expansion program has been raised by the sponsors without any guarantee from the Government of Pakistan and a weak balance sheet of the KESC.
AbdulAziz Aljomaih said: "The funding will bring new generation of 780 MW by 2009. For this purpose, we have already given out a contract of 220 MW, foundation laying ceremony of which is being witnessed here today. The Board is now in the process of evaluating the final bidding of 560 MW, which will be awarded in the next couple of months."
He said: "Our three-year Rehabilitation and Capital Expansion Program is complete, our network reliability will improve from the current 70 percent to 90 percent by 2008 along with our own generation by over 1,000 MW."
http://www.brecorder.com/index.php?id=578822&currPageNo=1&query=&search=&term=&supDate=
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