Govt Discusses Petroleum Policy and Pakistan’s Energy Mix

Senate Standing Committee on Petroleum was briefed on Petroleum Policy 2012, the rights/share of provinces under Article 172(3) of the Constitution, the details of the concession agreement and CSR of the companies under the policy.

The committee was informed on Friday that a delay in security clearance from the Defense Ministry is a hindrance in attracting foreign investment in the oil and gas exploration sector.

Imran Ahmed from Directorate General Petroleum Concessions (DGPC) briefed the committee that the total oil and gas production in the country for the year 2018-19 is 89,030 BBL oil per day and 3,935 MMCFD gas.

The overall energy mix of the country comprises of:

  • Gas 34%
  • LNG 9%
  • Oil 31%
  • LPG 1%
  • Coal 13%
  • Other sources 8%.

The total sedimentary area is 827,268 square kilometers and the area that has been explored/is being explored is 224,976 square kilometers. As of today, 394 total discoveries have been made including 85 oil and 309 gas discoveries with a success rate of 34%.

The Petroleum (exploration and production) Policy 2012 which governs the processes associated with this sector was approved by the Council of Common Interests. The briefing also included the process of awarding blocks, the fiscal regime and licensing zones, producers’ oil and gas pricing mechanism, royalties and income tax, incentives for unconventional hydrocarbons and other obligations including social welfare in the local population.

The ministry was directed to work on the inclusion of senators as well in the social welfare committees across the country in addition to the members of the National Assembly. The committee also sought details of how much money has been spent on corporate social responsibility and social welfare so far, in addition to details of development or infrastructural work done.

The committee was told that other than Khyber Pakhtunkhwa, the other three provinces have not nominated a focal person who will work with DGPC to ensure smooth implementation of Article 172(3), which talks about joint and equal vesting of oil and gas production. The committee decided to write a letter to the chief secretaries of the three provinces in this regard.

While discussing the resolution passed by the House in 2016 regarding the supply of natural gas to residents of Circles Lora, Baghan, Bakot, Upper Lower Galiyat on a priority basis Senator Javed Abbasi told the Committee that after detailed consultations and in-depth survey of the area, the estimate of one circle was more than Rs. 20 million. He suggested that the supply of gas can be arranged in phases to ensure timely completion of the process. The committee directed SNGPL to work out the plan and report to the committee.



>