March, 22 2005	Tuesday	11 Safar 1426

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ISLAMABAD, March 21: Supply of 20 million cubic feet gas per day from the newly-discovered wells at Hassan, Sadiq and Khanpur located in Sukkur and Shikarpur districts in Sindh started on Monday. The gas supply gets under way with the signing of gas pricing and sales agreement between the Pakistan government and the Petroleum Exploration Limited (PEL) in a joint venture project comprising the Pyramid Energy International of Canada, the Pakistan Petroleum Limited (PPL), the Government Holdings (Pvt) and the Sui Northern Gas Pipelines Limited (SNGPL).

The gas will be supplied to the SNGPL. $24 million have been invested for the exploration and development of gas fields. The gas production and supply from the fields is expected to further increase 25 million cubic feet by June 2005 and the government would save $50 million in oil imports.

Petroleum and natural resources secretary Ahmad Waqar, director-general (gas) Naeem Malik, PEL chief executive Zaheeruddin, Government Holding chief executive Khurshid Anwar, Pyramid Energy International president Ahmad Yahya, PPL resident manger Sultan Maqsood and SNGPL managing director Rashid Lone signed the gas pricing and sales agreement on behalf of the President of Pakistan and their respective organizations.

Petroleum and natural resources federal minister Amanullah Khan Jadoon, state minister Mir Mohammad Naseer Mengal and senior officials of the ministry attended the signing ceremony.

The PEL is the operator of Block-22 hundred per cent private sector Pakistani company, and has been playing a significant role in boosting oil and gas exploration in the country since its inception in 1994. Other downstream activities of the PEL include the development of Badar gas field and will shortly drill the Hamza well with an investment of $11 million.

The PEL is also aspiring to enter the realm of offshore exploration and is hot contender for an offshore block called Indus-J in the ultra deep waters of Pakistan. In addition, it has also applied for two deep offshore Indus blocks named O&P.

The petroleum minister appreciated PEL’s contribution in promoting the oil and gas sector, and hoped that it would further invest in onshore and offshore exploration activities in the country for mutual advantage.

Mr Jadoon said the government would encourage the private sector, especially the local companies, to come forward and invest in the country’s oil and gas sector and help meet the country’s energy needs. Under the government’s encouraging policies, the local gas production has increased up to 3.8-3.9 billion cubic feet per day.—APP