The government would allow smaller local oil and gas Exploration and Production (E&P) companies to join consortia of other E&P companies as non-operator to gain the necessary experience, so as to expand capacity to take on operating role in future, it is learnt.
Sources in the Ministry of Petroleum and Natural Resources told Business Recorder on Monday that at present majority of the small Pakistani E&P companies do not have requisite operating experience in the petroleum sector. "All such companies would be required to either enter into an agreement with an internationally renowned E&P/services company acceptable to Directorate General of Petroleum Concessions (DGPC) or a high calibre technical and management team with proven track record of overseeing and managing operations in the international petroleum industry," they added.
The officials maintained that all companies having joined consortia of companies in a concession and have gained at least three years experience, as a non-operator will be eligible to become operator subject to demonstration of technical and financial capability.
Each company interested in acquiring petroleum right will be required to furnish the details as to the nature of and the principal place of business of the company, the authorised, subscribed and paid-up capital of the company, the names and nationality of the directors thereof and the names and holdings of the principal shareholders.
In addition, every company other than the existing operator of a license/lease should also furnish evidence as to his financial and technical qualifications and as to his ability to conduct the activities under the relevant petroleum right in accordance with the good oilfield practices.
They said in the upcoming Petroleum Policy 2011 all local and foreign companies presently operating in Pakistan would be eligible to acquire petroleum rights. Foreign companies not operating in Pakistan but having operated concessions in other geographical areas of the world will also be eligible to acquire petroleum right subject to demonstration of technical and financial capability.