The Petroleum Exploration (Pvt) Limited (PEL) Chief Executive and Chairman Zaheeruddin held a meeting with Petroleum and Natural Resources Minister Amanullah Khan Jadoon here on Friday and informed him that Badr field-one will start gas production by November this year. Petroleum Secretary Ahmad Waqar was also present during the meeting.
According to PEL chief, Badr field production will increase from 45 to 60 million cubic feet gas per day.
Jadoon welcomed the suggestions given by the PEL chief executive. He was particularly receptive to his proposals to upgrade the onshore and offshore policies.
Zaheeruddin suggested that the government should give attractive incentives to make offshore and other areas of less potential attractive for local and multinational companies. He said that Indus offshore basin was a high potential area and needs to be exploited on priority basis.
He said post-discovery offshore policies could be formulated to the benefit of the government, as is a general practice in other countries. He also suggested reduction in bank guarantee from present 100 percent to 10 percent to encourage local E&P companies.
Zaheeruddin also suggested that bank guarantee against the assets of reserves and production of companies should also be accepted.
He lauded the investment-friendly policies of the government and said the Petroleum Ministry was playing a vibrant role in attracting investment for oil and gas sector.
He thanked the minister and his team for showing keen interest in providing all-possible help and assistance to E&P companies in capitalising untapped potential of 27 billion barrels of oil into 280 trillion cubic feet of gas.
He reiterated his resolve to create a strong indigenous base of oil and gas exploration leading to self-sufficiency in petroleum products.
He informed the minister that his company was presently supplying 25 million cubic feet of national gas per day from one of its concessions Block-22 for which the joint venture had invested about $25 million.
The PEL chief executive presented a plan to develop Kandra Gas Field. Kandra has 2.3 TCF gas reserves, valued at around $600 million.
He said the field was being developed on fast track. The plan entails drilling of 12 wells, a state-of-the-art gas processing facilities and gas transmission pipeline. It has been targeted to complete the project in two phases and its investment is estimated at $47 million and for power generation plant at $90 million.
He informed the minister about PEL's continued efforts to attract foreign investment in upstream and downstream sectors.
The minister appreciated the positive work of the PEL and assured its chairman of all-out help and assistance.