Pakistan’s largest gas exploring company is moving away from the fuel business after a decade of zero growth in domestic production.
Pakistan Petroleum Ltd. is looking to begin zinc and lead exports from next year reported Bloomberg.
The company is aiming to boost revenue from its mining business to $100 million annually within three years, Chief Executive Officer Moin Raza Khan said in an interview. It also plans to bid for a license to extract coal in Thar to fuel new power stations.
“There is a gloomy picture if you look at the current oil and gas scenario,” Khan told Bloomberg, adding that the company’s petroleum resources may run out in nine years if it doesn’t take steps to increase them.
We have to diversify into minerals.
He said that domestic gas production has plateaued in the past decade, forcing the South Asian nation to import gas and become one of the world’s fastest-growing markets for liquefied natural gas. To diversify and expand, state-owned Pakistan Petroleum is also pursuing opportunities in international oil and gas ventures and plans to bid for one project this year, he added without giving any details.
PPL wants to maintain its oil and gas production at about 1 billion cubic feet a day for the next two to three years before expecting a 10% increase following new discoveries, Khan said. It plans to drill 14 exploration wells and 18 development wells this year.
Revenue for this year will probably remain near the record Rs. 164 billion ($1.1 billion) achieved last year, or increase slightly following an uptick in production, according to Khan. Pakistan Petroleum expects to receive at least Rs. 20 billion from the government’s payment to the energy sector, which may improve the company’s payout, he said.