The government of Pakistan has assured the exploration and production companies working in the oil and gas sector of full cooperation. Prime Minister's Advisor on Petroleum and Natural Resources, Dr Asim Hussain while addressing the inaugural session of the Annual Technical Conference (ATC) jointly organised by Pakistan Association of Petroleum Geoscientists (PAPG) and Society of Petroleum Engineers (SPE), here on Tuesday said the government will protect local as well as foreign investment in the oil & gas sector.
To facilitate and attract investment in oil, gas and other natural resources, the government has announced Petroleum Policy 2012 and Mineral Policy 2012 has also been adopted by the Council of the Common Interests (CCI). These policies were formulated with an objective to bring investment in the natural resources sector of Pakistan. Within next 8 months about 750 mmcfd of gas would be added to the system, which would increase local gas production by 20 percent. But with each passing day gas supply/demand gap is increasing and to deal with the situation the government is working on multiple options, he added.
Asim emphasised upon the E&P companies to take full advantage of these investment friendly policies, which offers investors' international level wellhead gas price as well as protection to their investment. He said the government while re-affirming its commitment towards bridging the widening gap between demand and supply and securing a safe energy future announced the Petroleum Exploration and Production Policy 2012 on August 27, 2012. In addition to the tight gas, Low BTU Gas, LNG and LPG policies issued earlier, this is the second petroleum policy issued by the present Government almost 2 years after the 2009 policy, with an aim to attract new investment for exploitation of indigenous natural resources and decrease reliance on imports.
The advisor further said that the primary objective of this comprehensive policy is to optimise the processes and procedures, tax and pricing regime in respect of the petroleum exploration and production. The major incentive provided in the new policy is on wellhead gas price, which has been revised upward to attract investment, both from existing and prospective investors.
The government is also working on shale gas policy framework, which is in an advanced stage of finalisation, along with preparation of marginal and stranded gas and low pressure gas policies as well as guidelines for flared gases to tap available resources for the benefit of the country. Shale gas has been the game changer in North America and the same can be replicated in Pakistan if plans are executed in an optimum way. The LPG Policy 2012 is also under preparation.
The government is also working on bringing in gas through the Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas pipeline projects to meet growing energy demand in the country. Additionally, the import of LNG from Qatar is also being considered. In terms of expanding the gas network within the country and providing new connections, Asim said during the tenure of the present government 1.6 million consumers were given gas connections, while 879-km of transmission lines and 38,828-km of distribution and service lines were added to the gas network.
Advisor on Petroleum informed that the Government has recently announced a new exploration bid round offering 60 exploration blocks along with Road Shows in Houston and London scheduled for early December to showcase the Petroleum Policy 2012 and lure the multinational companies to participate in this bid round. Earlier, Moin Raza Khan, Chairman ATC 2012 and Dr Saeed Khan Jadoon Chairman SPE Pakistan welcomed the Advisor on Petroleum and the distinguished guests.
The ATC is a premier technical event of the upstream oil & gas industry of Pakistan, which has attracted over 1,000 Exploration and Production (E&P) companies, besides petroleum industry professionals, service providers, scientists, professors and students as well as business community from across the country and abroad. ATC 2012 is an opportune platform to discuss and map a way forward to resolve the country's energy challenges of meeting growing demand in the face of dwindling resources, high oil prices and escalating capital costs.
The event is providing an opportunity to E&P industry professionals, service providers as well as academia to present and discuss technical issues, including applications of innovative technologies and evaluate investment opportunities and share operational knowledge and experience of the sector. The conference also provides a forum for industry and academia to come together, collaborate and present their research work and case histories.
The ATC is a regular activity in which petroleum sector experts and managers from abroad and Pakistan participate and share experiences in the form of technical sessions and panel discussions. The theme of this year's two-day conference is "E&P Technologies, Innovation & New Frontiers."