ISLAMABAD - The government is giving priority to develop indigenous hydrocarbon resources to minimize the demand and supply gap of oil and gas.

However, due to depleting trend of major gas fields and rapid increase in demand for natural gas, wide gap between demand and supply has emerged which is bearing negative impact on the economy, said a press release.

Due to the untiring efforts of Ministry of Petroleum and Natural Resources and especially by the DGPC and his team and keen interest generated by the investment friendly and attractive policies, since taking over by the current government 78 numbers of wells have been spaded and 20 discoveries have been made so far.  In March, 2014 the oil production in the country crossed 93,600 bbl per day, which is the highest oil production level achieved so far. The Ministry after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), awarded 50 blocks on provisional basis to nine E & P companies in January 2014. 

Out of which 21 blocks are falling in Balochistan, 15 in Punjab, six in Sindh and eight blocks in Khyber Pakhtunkhwa. The Ministry has already signed (28) ELs and PCAs in February 2014. Oil and gas has been major global commercial energy source for decades and expected to play a leading role in future as well.

Historically, Pakistan has been an oil importing country but has been fortunate that till recently most of the energy needs of the country were being met through indigenous gas production.

The government has executed 15 more Petroleum Concession Agreements (PCAs) and 15 Exploration Licences (ELs) over Blocks No. 2564- 2 (Parkini Block-A), 2763-5 (South Kharan), 2764-3 (Palantak), 2564-5 (Rasmalan West), 2865-3 (Kharan-3), 2561-1 (Gwadar), 3169-2 (Zhob), 2566-5 (Bela North), 2764-2 (Rakhshan), 3066-5 (Bostan), 2866-3 (Khuzdar North), 3370-14 (Tirah), 3171-3 (Khiu), 3273-4, 3070-17 (Layyah), and (Warnali)3273-4 with Oil and Gas Development Company Limited (OGDCL).

Parkini Block-A block is located in Awaran and Kech districts of Balochistan, South Kharan block in Kharan district of Balochistan, Palantak block in Kharan and Panjgur districts of Balochistan, Rasmalan West block in Awaran and Pasni districts of Balochistan, Kharan-3 in Kharan and Nushki districts of Balochistan, Gwadar Gawadar, Pasni & Kech districts of Balochistan, Zhob block in Zhob,Musakhel districts of Balochistan and in Fata, Bela North clock in Khuzdar, Awaran and Lasbela disctricts of Balochistan, Rakhshan block in Kharan district of Balochistan, Bostan block in Ziarat, Pishin, Killa Abdulla and Quetta districts of Balochistan, Khuzdar North block in Khuzdardistrict of Balochistan, Tirah block in Khyber, Kurram and Orakzai Agencies of Fata, Khiu block in Bhakkar and Khushab districts of Punjab, Layyah block in DG Khan and Muzaffargarh districts of Punjab, Warnali block in Chakwal, Jhelum and Rawalpindi districts of Punjab.

The total area of aforesaid blocks is 32357 sq km and minimum firm work commitment is US $ 39.19 million.

Apart from minimum work commitment, companies are obligated to spend a minimum of US $ 30,000 per year in each block on social welfare schemes. OGDCL is a Public Limited Company engaged in Exploration & Production activities in the country for the last four decades. OGDCL holds the largest share of oil (58%) and gas (42%) of the total reserves in the country.

Its percentage share of total oil and gas production in Pakistan is 52% and 27%, respectively. In addition, OGDCL is the operator in 48 exploration licences and working interest owner in 6 other exploration blocks operated by various E & P companies. OGDCL is currently producing 43,896 barrels of Oil, 1163 MMCFD of gas, 84 metric tons of LPG and 96 metric tons of Sulphur per day.

The execution ceremony was graced by Shahid Khaqan Abbasi, Minister for Petroleum and Natural Resources, Jam Kamal Khan and Zahid Muzaffar, Advisor to Ministry of Petroleum and Natural Resources with their presence.

The respective ELs and PCAs were signed by Abid Saeed, Secretary Petroleum and Natural Resources, Saeedullah Shah, Director General Petroleum Concessions, Riaz Khan, Managing Director, OGDCL and Directors from the provinces of Balochistan and Punjab.