Govt Receives Insufficient Bids for Petroleum Exploration Blocks

The Petroleum Division has not received any bids for one-third of Onshore exploration blocks, mainly due to cold responses from the foreign and local private Exploration & Production companies.

The Directorate General of Petroleum Concession (DGPC) had offered 14 blocks across Pakistan for grant of Petroleum Exploration Rights but has received bids only for nine blocks. Even of the bidding offer received for nine blocks, only four have more than one bid, while for the remaining five, there is only one bidder, official documents reveal.

One foreign Exploration and Production Company has partially participated in the process through a joint venture, while the rest of the overseas E&P companies abstained from the bidding process, official documents available with ProPakistani reveal. The foreign E&P company that participated in the process is United Energy Pvt. Ltd., a Chinese company. Even the local E&P companys’ participation was mediocre in the process.

For the nine blocks where successful bidders have been declared include, including Block No.2866-5 (KALAT WEST), the bidding winners are Joint Bid of PPL/MPCL (50pc/50pc share) with the offer of 813 Work Units. OGDCL 245 Work Units was on the 2nd number. For Block No.2967-5 (MACH), the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 10,454 work units. OGDCL/POL with 781 Work Units offer was 2nd.

For Block No.2867-9 (DADHAR), the successful bidders are the joint bidders MPCL/PPL/UEPL (respectively with 40pc/30pc/30pc shares), who offered 3,209 work units. OGDCL/POL with 937 Work Units offer was 2nd. The successful bidder of Block No.2969-11 (MEERAN PUR) is the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 210 work units. OGIL with 153 Work Units offer was 2nd.

For Block No.2869-15 (Sui North), the successful bidders are the joint bidders MPCL/PPL (respectively with 50pc/50pc shares), who offered 360 work units; there was no second bidder.

Similarly, for Block No.2966-2 (CHAH BALI), the successful bidders are the joint bidders OGDCL/POL (respectively with 70pc/30pc shares), who offered 169.5 units respectively; there was no second bidder for these both blocks.

For Block No.3171-2 (NURPUR) and Block No. 3072-9 (OKARA), OGIL declared a successful bidder with 100pc shares, who offered 111.5 360 work units; there was no second bidder. For Block No.3269-3 (WANA), OGDCL was a single bidder winner with 236 work units.

However, no bids were received for five blocks, including Bock No.2967-6 (SIBI), Block No. 3071-5 (FATEHPUR), Block No. 2871-7 (KHANGARH WEST), Block No.2770-4 (ISLAMGARH) and Block No.2762-2 (DESERT).

According to the petroleum division, the minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks will be over $70.2 million in three years.

Apart from E&P activities, the successful companies will also spend over $810,000 on social welfare for the areas of their respective Blocks. For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop the production.