Exploration and Production (E&P) companies operating in upstream oil/gas sector of the country during the past four years have invested Rs 1 trillion, officials said.According to an official briefing of the Director General Petroleum Concession (DGPC) of the Ministry of Petroleum and Natural Resources to Public Accounts Committee as a result of attractive petroleum policy of the government local as well as international oil/gas companies over the years drilled 179 exploratory wells across the country which is a record.
The briefing added that during the period E&P companies made 100 oil/gas discoveries which is a record with 55% success rate. They further said that with improved law and order situation the E&P companies have started undertaking development projects in militancy hit Federally Administrative Tribal Areas (FATA) and Balochistan.
DGPC after developing consensus between the federating units and taking all stakeholders on board has granted 46 new petroleum exploration licenses compared to 33 licenses issued by former government.
The E&P companies added 944 Million Cubic Feet per Day (MMCFD) gas into the system of which 466 are from new discoveries and 478 from existing fields which replaced depleting fields like Sui & Qadarpur, therefore national gas produce is still standing at 4.2 Billion Cubic Feet per Day (BCFD). Over the period E&P companies added 32,343 barrels per day of crude oil of which 11,149 barrels per day is from new fields and 21,194 barrels per day from existing fields.
The DGPC has also revoked exploration licences of 8 non-performing E&P companies, and 12 show cause notices were issued to 6 non-performing companies. The Directorate managed to recover Rs 4.7 billion from the oil/gas operators of which Rs 1.64 billion is on account of production bonus, Rs 1.9 billion on account of social welfare and Rs 1.1 billion on account of marine research. This amount has been deposited in the gas producing districts which will be used on specified projects, especially health, education and basic infrastructure in consultation with public representatives including Members of National Assembly (MNAs), Members of Provincial Assembly (MPAs) and local bodies' representatives.
According to oil/gas E&P sector experts drilling of a single exploratory well in Southern parts of the country costs $15 million while in Northern parts it costs $25-30 million depending on the nature of the well. While seismic survey of a well additionally costs $8-10 million and after discovery of gas/oil early production facility small plant used to process up to 40 MMCFD of gas costs $40-50 million dollars and medium and large early production facility plant for processing 200 or 300 MMCFD of gas costs $ 300-400 million.