ISLAMABAD: A meeting of the Council of Common Interests (CCI) presided over by Prime Minister Yousuf Raza Gilani has approved, in principle, Petroleum Exploration and Production Policy 2012 and is likely to increase wellhead price from average $3.5 to $6 for attracting more investment in oil and gas sector.
An official said the previous policy offered less attractive incentives to potential investors and the rate being offered to companies ranged between $2.5 and $4.5 per mmbtu. The new policy is expected to offer uniform wellhead gas price for all the four zones. According to the official, the new wellhead price would help overcome energy shortage by attracting foreign investment by offering better incentives to exploration and production companies.
According to a statement, Prime Minister Syed Yousuf Raza Gilani chaired the 8th meeting of the Council of Common Interests (CCI) after 18 Amendment, which was attended by Chief Minister Punjab, Mian Shahbaz Sharif, Chief Minister Sindh, Syed Qaim Ali Shah, Chief Minister KP Amir Haider Khan Hoti, Advisor to the Prime Minister on Finance, Dr Abdul Hafeez Sheikh, Minister for Water and Power, Naveed Qamar, Minister for Science and Technology, Mir Chengz Khan Jamali, Minister for Communications, Dr Arbab Alamgir Khan and Minister for IPC, Mir Hazar Khan Bajrani along with chief secretaries of all provinces and other senior officials.
The meeting considered six agenda items and approved the annual report of the last year, which is to be laid before the Parliament as a constitutional requirement. Gilani on the presentation by the Sindh Chief Minister directed the Planning Division and Economic Affairs Division to provide full support in arranging funds for Thar Coal Project on top priority being national project for power generation.
He also directed on the request by Chief Ministers Punjab and Sindh to incentivize power generation by sugar mills, using their baggas to generate around 2000 MW per annum. The Prime Minister asked the Advisor on Finance to convene an energy conference at the earliest which he would preside aimed at removing the snags, if any, being faced at present.
Gilani directed that a meeting of provincial governments' representatives be held early next week to address some observations raised by provinces. The CCI approved amendment in its earlier decision for charging paisa 30 MAF of water and 1/2 paisa for each unit of electricity produced from hydel and nuclear sources. The CCI also approved National Science, Technology and Innovation Policy 2012, which was approved by all the chief ministers.
The CCI also approved the financing of Provincial Population Welfare Departments at the level of 2010-11 as per earlier commitment of the federal government. The Prime Minister further directed the Finance Secretary to hold a meeting with provincial governments to work out financial outlay as a consequence of the 18th Amendment.