A.Rafay
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KARACHI: The government of Pakistan has finalised 60 exploration and production blocs throughout the country to be auctioned under the newly-approved Petroleum Policy 2012, a petroleum ministry official said.
According to the official, of these 60 blocs, four would be given to four different countries under government-to-government agreements. The oil and exploration companies and countries have almost two months to submit bids, which will be opened in the second week of December.
Petroleum Policy 2012 had increased the rates of gas for exploration and production companies. Under the new policy, the government has set well head gas price in Zone-III at $6 per MMBTU, $6.3 in Zone-II and $6.6 in Zone-I.
Zone-I comprises west Balochistan, Pashin and Potowar basins; Zone-II consists of Kirthar, east Balochistan, Punjab Platform and Suleman basins while the Lower Indus Basin falls in Zone-III. Moreover, the new Petroleum Policy provides a comprehensive pricing mechanism for Zone-O that had been set at $7 per MMBTU for shallow, $8 for deep and $9 for ultra-deep exploration.
The policy maintains a system based upon two different types of agreements to obtain E&P rights in Pakistan Petroleum Concession Agreement for onshore operations and Production Sharing Agreement for offshore operations. As per policy, the initial term of production and exploration lease will be up to 25 years in offshore areas with one possible renewal of up to five years.
The new policy also addresses the issues raised after the 18th Amendment that had increased the share of provinces in natural resources. Now 90 percent of the gas produced will be purchased by the government while the remaining 10 percent will go to a third party.
Because of the attractive rates, the companies which had stopped exploration and production activities in various blocs have started working again and positive results are on the cards, the official said.
The country has gas reserves of 23 trillion cubic feet per day and according to international estimates, Pakistan has 51 trillion cubic feet of shale gas reserves for which the policy was chalked out. Besides, the country has 28 trillion cubic feet reserves of low BTU gas and 20 trillion cubic feet of tight gas reserves.
Pakistan puts 60 exploration blocs on auction - thenews.com.pk
According to the official, of these 60 blocs, four would be given to four different countries under government-to-government agreements. The oil and exploration companies and countries have almost two months to submit bids, which will be opened in the second week of December.
Petroleum Policy 2012 had increased the rates of gas for exploration and production companies. Under the new policy, the government has set well head gas price in Zone-III at $6 per MMBTU, $6.3 in Zone-II and $6.6 in Zone-I.
Zone-I comprises west Balochistan, Pashin and Potowar basins; Zone-II consists of Kirthar, east Balochistan, Punjab Platform and Suleman basins while the Lower Indus Basin falls in Zone-III. Moreover, the new Petroleum Policy provides a comprehensive pricing mechanism for Zone-O that had been set at $7 per MMBTU for shallow, $8 for deep and $9 for ultra-deep exploration.
The policy maintains a system based upon two different types of agreements to obtain E&P rights in Pakistan Petroleum Concession Agreement for onshore operations and Production Sharing Agreement for offshore operations. As per policy, the initial term of production and exploration lease will be up to 25 years in offshore areas with one possible renewal of up to five years.
The new policy also addresses the issues raised after the 18th Amendment that had increased the share of provinces in natural resources. Now 90 percent of the gas produced will be purchased by the government while the remaining 10 percent will go to a third party.
Because of the attractive rates, the companies which had stopped exploration and production activities in various blocs have started working again and positive results are on the cards, the official said.
The country has gas reserves of 23 trillion cubic feet per day and according to international estimates, Pakistan has 51 trillion cubic feet of shale gas reserves for which the policy was chalked out. Besides, the country has 28 trillion cubic feet reserves of low BTU gas and 20 trillion cubic feet of tight gas reserves.
Pakistan puts 60 exploration blocs on auction - thenews.com.pk
