The government has decided to increase the wellhead price for the investors in the oil and gas exploration sector from the existing $4.38-5.03 per mmbtu to $6 per mmbtu, officials said. According to well-placed sources in the ministry of petroleum and natural resources, keeping in view the international trend of gas/oil exploration prices, the government would soon announce new wellhead prices in a bid to attract local as well as global investors.
Officials said the government would offer investors a price of $6 per British Thermal Unit (mmbtu) for new discoveries instead of previous $4.38 to $5.03 per mmbtu. They added that shallow discovery will be offered price of $7 per mmbtu, deep $8 mmbtu and ultra deep $9 per mmbtu, while first three offshore discoveries will get a premium of $1 per mmbtu.
According to the officials, by the end of December 2011, the ministry is to bring about 200 Million Cubic Feet per Day (mmcfd) in the system of which 100 mmcfd from Kunar Pasaki, 30 mmcfd from Sanjoro gas field, 25 mmcfd gas would be brought from Minao-Latif gas field, 12 mmcfd from Adam gas field, 20 mmcfd from Nehmat-Bisal gas field and 12 mmcfd from Adam gas field.
They said the private sector working in the oil and gas sector of the country has requested the government to increase the wellhead price, adding that new incentives for investors were required to expedite exploration activities in the country.
At present the country is confronting with severe energy crisis and recently the petroleum ministry approved gas load-management plan for the winter season according to which provision of gas to CNG stations would be suspended for three days, besides three days gas suspension to industrial sector in Punjab. Officials added that the management of Miano-Latif gas field has requested the government to provide it financial assistance in installing a 50-km gas pipeline from the gas field.
They said to address the severe gas shortage, Mari Gas Company has offered provision of 44 mmscfd gas to SNGPL for onward supply to Guddu Thermal Power Station. This volume will be increased to 55 mmscfd during the peak winter season in the country. This was decided in a meeting at the ministry of petroleum and natural resources on November 3, 2011. The meeting was headed by Dr Asim Hussain, federal minister for petroleum and natural resources and attended by senior officials of the ministry and all oil and gas companies. Laying of the pipeline by SNGPL has already commenced.