The International Finance Corporation (IFC) on Thursday signed a $52 million financing package with Dewan Petroleum (Pvt) Ltd, to support its upstream oil and gas exploration, development and production project in Pakistan.
IFC, the private sector arm of the World Bank Group, is strengthening natural gas production in Pakistan to meet the country's increasing domestic demand by supporting a local oil and gas firm. "It is encouraging to see Pakistani companies like Dewan Petroleum participating in the hydrocarbon sector of their country," said Somit Varma, IFC's Associate Director for Oil, Gas, Mining and Chemicals.
"Not only do they help in developing domestic energy resources to satisfy growing demand, but they also generate revenues for governments, create jobs and business opportunities for local suppliers of goods and services."
Dewan Petroleum, associated with the well-established Dewan Mushtaq group in Pakistan, is a new Islamabad-based oil and gas firm that is committed to environmental and social sustainability.
Dewan Petroleum and an affiliate company, REPL, have a 60 percent combined working interest in the Safed Koh block in Punjab in central Pakistan, which includes the Salsabil gas and condensate field. Dewan Petroleum and its partners, which include Rally Energy Corp, a Canadian oil and gas company, will also explore prospects for additional gas reserves in the block.
The joint venture will strengthen domestic natural gas supplies in a market where increasing demand may lead to a shortfall in domestic supply, and hence they need for gas imports.