KARACHI, April 23: Pakistan will offer 20 offshore blocks for oil and gas exploration at a conference next week in London, a government official said on Saturday. Pakistan will host the conference on Tuesday and expects at least 150 oil and gas exploration firms to attend.
A.D. Sabri, director-general for exploration at the ministry of petroleum and natural resources, said all 20 blocks to be offered for bidding are in an offshore area called the Indus Basin, off southern Sindh.
The ministry would also award six new licences worth $44 million to foreign companies, all European, to explore for oil and gas in the Indus Basin, he said.
“We have already selected four foreign firms to award six concessions in the Indus Basin. Those blocks are other than the 20 we plan to offer,” Mr Sabri told Reuters.
London-based Tullow Oil Pls and Paige Limited will be awarded two exploration licences each, while one concession each will be granted to Premier Oil Pakistan and Natvus.
Mr Sabri said foreign firms and Pakistani officials would also discuss downstream opportunities to boost exploration activities.
“We have achieved our target to bring $80 million foreign investment in the exploration sector during the fiscal year 2004-05 and we expect some good response at the London conference,” he said.
Pakistan’s liberal exploration policy has attracted interest from foreign firms in recent years, making oil and gas the largest foreign investment area.
Foreign firms including Total of France and Austrian OMV are involved in exploration and production of hydrocarbons in the country.
But an unsuccessful attempt by a consortium led by French oil major Total to find hydrocarbons in deep water off Karachi last year was a blow for efforts to attract investment.
Pakistan imports 85 per cent of its energy needs, including about $3 billion worth of crude a year, and is struggling to increase domestic oil production of about 65,000 barrels a day. It hopes to produce 100,000 barrels a day within five years.
Pakistan also produces 3.5 billion cubic feet of natural gas a day, which meets 50 per cent of its total energy needs.
The government had set a target of drilling 100 exploratory wells this year, compared with an average of 55 to 60 a year previously.
Pakistan’s proven oil reserves stand at 800 million barrels and scientifically estimated potential reserves of 27 billion barrels. Proven gas reserves are 45 trillion cubic feet and scientifically estimated reserves at 450 trillion cubic feet.—Reuters
