ISLAMABAD, July 5: The government on Thursday granted an exploration licence to Government Holdings (Pvt) Limited (GHPL) over an offshore block located in Arabian Sea.

It also reached production sharing agreement (PSA) with the GHPL and Oil and Gas Development Limited (OGDCL) over the block 2366-6 in Eastern Offshore, covering an area of 2,500 sq km.

The licence and the PSA were signed by Secretary Petroleum and Natural Resources Ahmad Waqar, Director General Petroleum Concessions Mohammad Naeem Malik, GHPL Managing Director/CEO Khurshid Anwar and OGDCL Chairman and Managing Director Arshad Nasar.

The signing ceremony was attended by Minister for Petroleum and Natural Resources Amanullah Khan Jadoon, Minister of State for Petroleum and Natural Resources Mir Muhammad Naseer Mengal and Additional Secretary Petroleum and Natural Resources Shaukat Hayat Durrani. OGDCL will invest over $2.75m during the first two years of the initial term of the licence.

The granting of the new production sharing agreement forms an integral part of the government’s drive to attract investment into the oil and gas sector to boost the economy by substituting imported oil with indigenous oil and gas production.

OGDCL is the largest public limited company engaged in exploration and production activities in the country for the last four decades. Presently, OGDCL is 100pc owner in 27 exploration blocks. In addition, it is the operator as well as working interest owner in 15 exploration blocks.

OGDCL is partner in another six exploration blocks operated by other exploration and production companies. OGDCL is operating 40 mining and development and production leases and is partner in 32 non-operated mining and development and production leases.