The government is making out efforts to increase domestic oil and gas production to 100,000 barrels per day from existing 66,000 barrels per day and natural gas production to five billion cubic feet per day from 3.8 billion cubic feet at present.
"We are targeting to raise the number of exploratory wells per year to 100 from 21 wells drilled last year in bid to enhance domestic oil and gas production," official sources in the Ministry of Petroleum and Natural Resources said on Tuesday.
There was a huge potential for oil and gas exploration in Sindh and Balochistan as well as in the deep-water Indus delta, therefore, the government had provided an enabling environment to both local and foreign oil and gas exploration and production companies, the sources added. According to the sources, a new Petroleum Policy is being prepared and will be unveiled later this year.
The objective of the new policy will include acceleration of exploration and production activities in the country, promotion of foreign investment and involvement of Pakistani companies in upstream activities, and encouraging training of Pakistani professionals.
About liquefied petroleum gas (LPG) situation, the sources informed that the country was producing about 1,500 tonnes of LPG per day while its demand was about 4,500 tonnes per day. The supply situation has improved due to better policies and now the prices are stable in the market. The terminal for import of LNG would soon be constructed.
The LPG Policy approved by the government in 2006 also envisages continuation of deregulation and fixing of LPG prices by companies on a competitive basis. An investment of Rs 9 billion had so far been made in LPG sector, while there was a big market in the country where LPG would be used as a preferred domestic fuel.
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