ISLAMABAD: The Petroleum Division signed Petroleum Concession Agreements (PCAs) and Exploration Licenses (ELs) for two blocks, here on Wednesday.

The signing ceremony was witnessed by Federal Minister for Energy Muhammad Hammad Azhar.

The ELs and the PCAs were signed by Dr Arshad Mahmood, Secretary Petroleum Division.

On the occasion, the federal minister reiterated that the present government was committed to expedite the exploration work on oil and gas in the country to meet the energy needs of the country by increasing the hydrocarbon reserves during the next few years.

He also informed that execution of Exploration Licenses and Petroleum Concession Agreements will not only enhance the investment in the petroleum sector but also contribute in bridging the energy demand and supply gap.

He also reaffirmed that the bidding of offshore license would commence in the next few months.

He also mentioned that in addition to exploration of indigenous resources the government is also endeavoring to establish new terminals for import of LNG.

These blocks are located in districts Attock and Loralai.

The work on Block No 3068-9 (Nareli) would be carried out with the joint venture of M/s Mari Petroleum Company Limited (MPCL) (Operator) (39 percent), M/s Pakistan Oilfields Limited (POL) (32 percent), and M/s Spud Energy Private Limited (SEPL) (29 percent).

While the work on Block No 3372-25 (North Dhurnal) would be carried out with joint venture of M/s POL (Operator) (60 percent) and MPCL (40 percent).

Minimum firm work commitments for both blocks was US 24.32 million dollars for the period of three years.

Companies are obligated to spend a minimum of US $30,000/year in each block on social welfare schemes, which would ultimately generate economic activity in the area leading to uplift the standard of living of the residents.

Copyright Business Recorder, 2021