Oil and Gas Exploration in Pakistan and other energy sources

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Iran to help in power generation in Karachi ​

KARACHI (July 21 2007): Sindh Governor, Dr Ishrat-ul-Ibad Khan has said there is great potential for investors in the power generation sector in Karachi. The existing power demand gives a reflection of 4000 MW power requirement for the city by the year 2010, he said while talking to Iran's Deputy Foreign Minister Mehdi Safari at a meeting held at the Governor House here on Thursday.

The Iranian ambassador to Pakistan, Mashaallah Shakri, Consul General at Karachi Masood Zammani, Governor's Principal Secretary Saleem Khan were also present on the occasion. The Governor and Iranian Deputy Foreign Minister had an exchange of views on various issues of importance including co-operation in trade and other fields.

Mehdi Safari informed that Iran is working on power generation projects in various countries and would review the situation in Karachi after having a survey and make progress in the installation of generation plants while work was in progress to supply 1000 MW electricity to Pakistan.

He also evinced interest in recycling project and solid waste management. He invited the Governor on a visit to Iran to have a better review of these projects and take a decision in this regard.

Welcoming the Iranian Deputy Foreign Minister, the Governor appreciated their offer in the power generation sector and said there is need to start work on this project in Karachi on a preferential basis. The Governor assured of all possible co-operation of government in this regard.

He pointed out that after privatisation, KESC was of the opinion of starting power generation by itself and did not held agreements with power generation companies. But, realised later that it was necessary. Governor Ibad and Iran's Deputy Foreign Minister Mehdi Safari described the relations between the two countries as historic and hoped that these will consolidate further.

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UK-based company working on 5.4 gw Bunji project feasibility ​

LONDON (July 21 2007): UK-based consultant, Mott MacDonald, is working with an international team to undertake feasibility study on the proposed 5.4 gw Bunji hydro scheme for the Water and Power Development Authority (Wapda).

The company said that the Bunji scheme had a budget of around $3 bn, and current plans foresee construction of a 180 metres high concrete dam on the Indus river. The project design envisages installation of 12 units of 450 mw capacity each. A further key aspect of the construction challenge is the design of headrace tunnels to be excavated through the main tectonic faults between the Indian subcontinent and Asia.

http://www.brecorder.com/index.php?id=595036&currPageNo=1&query=&search=&term=&supDate=

 

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Pakistan launches 5-yr energy strategy ​

(MENAFN) The Pakistani government has announced its five-year energy policy revising upward oil and gas production prices by 6-8 percent on new discoveries, Khaleej Times reported.

The new plan, dubbed Petroleum Exploration and Production Policy 2007, will pass its impact on domestic consumers within five years, said the Pakistani Minister of Finance, adding that Pakistan has met only 20 percent of its total oil requirements from domestic sources and gas requirements were also rising with growing economy and hence the target was to maximize indigenous production of oil and gas.

He said the country was at twelfth position in 2001 in terms of petroleum activity level but slipped to sixteenth in 2006. However, India was at seventeenth position but improved its environment and secured seventh position during the same period.

http://www.menafn.com/qn_news_story_...yId=1093160316

 

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50 megawatts Lakhra power plant to be made functional in three months ​

KARACHI (July 22 2007): Sindh government has decided to take immediate steps to make the second coal-based power generation unit in Lakhra Power Plant, having a generation capacity of 50 megawatt, sources told Business Recorder on Saturday.

The new coal-fired power plant would be the second unit in Lakhra that would be made functional within the next two to three months. The unit will be the second preceded by another power production unit with a capacity of 50MW already functional in the plant and generating electricity from 25 to 30MW, they said.

The decision to make the second power unit functional at the earliest was taken in a meeting of Lakhra Coal Development Company officials, which was chaired by Sindh Mines and Mineral Development Minister Irfanullah Khan Marwat held on Thursday, to cater to the growing demand of the power in the province. It may be pointed out that there are three power units in Lakhra Power Plant each with a capacity of 50MW. But two units are not functional at present.

It is an economical and dependable source of energy and would be another step to achieve the objective of self-reliance in power sector, sources said while commenting on revival of the unit.

The meeting also reviewed the coal mining activities in the Lakhra coalfield and agreed to expand the coal mining and exploration operation in the field. For the expansion of exploration operation, provision of modern facilities has been decided to new areas of the field for development of coal deposits.

Irfan Marwat also granted the permission for acquiring new vehicles for the Lakhra Coal Development Company (LCDC) on the request of its officials keeping the logistics problems being faced by them in view.

Lakhra coalfield is spread over a land of 1309 Sq kilometres and located at a distance of about 93-km from Karachi. According to studies, it has estimated coal deposits of 1.328 billion tonnes. The coal of Lakhra is considered the most suitable for power generation and other application after the coal deposits in the Thar coalfield.

To accelerate the work pace on coal mining and exploration at Lakhra coal field, new equipment and machinery have also been decided to be purchased in the meeting for the fast pace exploration of the coal, sources said.

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Work on five hydel power stations to start by year-end ​

LAHORE (July 22 2007): Construction work on five hydel power stations will commence by the end of this fiscal year, and the project will cost a total of four billion rupees, of which 80 percent funds will be met with the assistance of Asian Development Bank and the remaining to be borne by the Punjab government.

This was stated by Punjab Minister for Power Chaudhry Armghan Subhani, while presiding over a department's meeting at his office here on Saturday, according to a handout. Chief Engineer Power Muhammad Yaqoob, In-charge Reconciliation Cell Iftikhar Ahmad Randhawa, Director Technical Rahat Khan and REDP Project Manager Liaqat Ali Iqbal were also present.

The minister observed that electricity was the backbone of all development efforts, and the government was committed to facilitate the people and all national sectors in this regard. The projects will be constructed at Marala, Chianwali, Deg Outfall, Okara and Pakpattan.

Elaborating on the cost break-up of the hydro power projects, he disclosed that Rs 110.2 million would be spent on preliminary work, Rs 1.07 billion on civil works, Rs 1.37 billion for hydro mechanical equipment, Rs 142.6 million for electrical equipment, Rs 12.6 million on transmission lines, Rs 81.1 million for physical contingencies, Rs 135.2 million for engineering supervision, Rs 40.5 million for administration, audit and accounts, Rs 40.7 million for duties and taxes, Rs 133.2 million for price contingencies, Rs 110 million for feasibility study of five additional sites, Rs 169.8 million for capacity building and Rs 586.4 million for interest during construction.

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Chamalang coalfield 242 more coal companies registered ​

QUETTA (July 23 2007): As many as 242 more coal companies have been registered for coalmining in Chamalang coal reserves field in bordering town of Loralai and Kohlu districts, official sources told APP here Sunday.

Three coal companies are engaged in coalmining activities in the area. These included Bijar, Rafiq and Zamindar Coal Companies.

http://www.brecorder.com/index.php?id=595879&currPageNo=1&query=&search=&term=&supDate=

 

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Wapda and PPIB lock horns over Uch-II expansion plan ​

ISLAMABAD (July 22 2007): The Water and Power Development Authority (Wapda) and the Private Power Infrastructure Board (PPIB) have locked horns over expansion plan of Uch-II power project, which is being lingered on deliberately by the latter, sources told Business Recorder.

"Wapda wants to expand the project in public sector on negotiated terms, but the PPIB is opposing this plan, arguing that it should be offered on ICB," sources said. Now the Ministry of Water and Power, parent Ministry of both Wapda and PPIB, is making efforts to call both parties onto one table and settle the issue so that the project could materialise.

Sources said that the project had been placed before the PPIB Board for final go-ahead signal a few months back but the Minister for Water and Power, Liaquat Ali Jatoi, who is also chairman of the Board, did not make effort for its approval, and just said that the issue should be settled by PPIB MD and Wapda Chairman despite the fact both were present in the meeting.

"Nothing has materialised even after the passage of almost two years, when the government decided that Uch-II should be part of projects to be developed under the ICB," sources said. The ECC had directed that the existing IPPs should be invited to expand their generation capacity and after one month Uch Power Limited (UPL), along with other lPPs, was invited to submit firm Expression of Interest (Eol). UPL gave qualified EoI after the deadline. However, the PPIB extended the date in the ECC decision.

The sources further said that Prime Minister Shaukat Aziz also directed that Uch-Il project be processed as ICB. In June, the PPIB board, while considering sequencing for ICB projects, decided that work on all ICB projects should be continued on fast track basis and RFP for the first ready project be issued as soon as possible.

Meanwhile, Planning Commission Deputy Chairman Dr Akram Sheikh, Minister for Water and Power Liaquat Ali Jatoi, Minister for Petroleum and UPL made the point that expansion of the existing project, based on Uch gas, would be best at Uch, rather than a new project site at Kashmore.

Uch Power Limited (UPL) was also of the view that besides saving in Capex, the expansion of the current plant could be completed at least a year ahead of a new plant at an alternative site which would save about $200 million in one year due to fuel cost differential between imported oil and gas, in addition to the savings due to the use of existing infrastructure and sharing of common facilities and spares.

According to the present implementation schedule for ICB projects, the earliest award of Uch-Il project was third quarter of 2007 and commissioning in the 2nd/3rd quarter of 2010, but it was not possible to follow the schedule, sources said.

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OGDC sets 50 wells drilling target for 2007-08 ​

ISLAMABAD (July 26 2007): The Oil and Gas Development Company (OGDC) has set an ambitious target of drilling 50 wells for 2007-08, (inclusive of 9 projects in Balochistan) and submitted its annual work plan with the Planning Commission for endorsement.

It had achieved target of 41 wells in 2006-07, showing 15 percent increase in oil and reasonable rise in gas production to maintain existing level of 850 mmcfd.

The annual performance report showed that OGDC's oil production in 2006-07 stood at 36,329 against 31,511 bpd in 2005-06, and gas at 850 mmcfd. OGDC Chief Executive Officer (CEO) Arshad Nasar spoke exclusively to Business Recorder on Wednesday on the strategy worked out by him to achieve this year target. He said OGDC had rewritten its history by hitting 41 discoveries' target in 2006-07 and its credit went to his entire team.

He expressed confidence that his team would continue to work with the same zeal to make things even better for 2007-08. Nasar said, "I have contributed to bring evolution in OGDC by making the employees feel that each of them is an important member of the team that helped OGDC achieve ambitious drilling target of 41 wells in 2006-07."

He also listed challenges that his team could face while working at the field. The law and order situation was one of them. OGDC was also looking for expanding its network out of Pakistan through joint ventures with multinational oil and production companies, he said. Its technical teams were already working with some multinationals in China, Yemen, Saudi Arabia and Kuwait for exploring the possibility of joint ventures, he added.

Nasar said that OGDC was working on two-pronged strategy to make the difference in oil and gas production. It planed to follow an aggressive agenda to expand drilling network inside Pakistan to maintain track record of the biggest exploration and production (E&P) company and simultaneously take some joint ventures abroad, he further said.

He said, "We are discussing with many multinationals for joint ventures abroad and China could be the first destination for OGDC for any overseas project." OGDC is very aggressively involved with some big multinational companies for offshore drilling and Petrobras of Brazil is one of them.

It is also a part of Shell Pakistan-led consortium expected to begin offshore drilling in Pakistan's deep waters shortly. Nasar said OGDC was cautious of the importance of offshore drilling and it was part of more than one consortium getting ready for drilling in Pakistan's territorial waters.

He said that a policy of half-deregulation was creating problems for oil and gas sector and LPG prices controversy was one of them. Being one with four decades experience of oil and gas sector Nasar believes that deregulation could be the best tool to protect the interest of all stakeholders of oil and gas sector including the consumers in each case including LPG and the government should follow the same in its real sense.

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