ISLAMABAD: The Ministry of Petroleum and Natural Resources on Monday signed petroleum concession agreements and exploration licences in 12 blocks with Oil and Gas Development Corporation (OGDCL) and Pakistan Petroleum (PPL) for exploration of hydrocarbon reserves.

The licences and petroleum concession agreements are for blocks in Ladhana, Fatehpur, Ranipur, Armala, Baratai, Rasmalan, Parkini, Nausherwani, Bela West, Karsal, Hisal and Sadiqabad with a minimum firm work commitment of $176 million covering the total area of 22619.3 square km.

Speaking on the occasion, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said that execution of agreements and licences would not only attract new investment, but also abridge gap between energy demand and supply.

The Directorate-General of Petroleum Concessions prepared and finalised 12 exploration licences and 12 concession agreements within one week after provisional award, said a ministry statement.

Ladhana block is located in Leiah, Muzaffargarh and Multan districts; Fatehpur block is in Leiah, Muzaffargarh, Khanewal and Multan districts; Ranipur block is in Khairpur, Larkana and Nausharo Firoz districts; Armala block is in Tharparker district; Bratai block is located in Kohat district; Rasmalan block is located in Pasni, Awaran and Lasbela districts; Parkini block-b is located in Awaran and Pasni districts; Nausherwani block is located in Kharan districts; Bela West block is located in Khuzdar, Awaran and Lasbela districts; Karsal block is located in Chakwal district; Hisal block is in Attock, Chakwal and Rawalpindi districts; and Sadiqabad block is located in Rahimyar Khan district.

OGDCL holds the largest share of oil (58pc) and gas (42pc) of the total reserves in the country.

Its percentage share of total oil and gas production in Pakistan is 52 per cent and 27 per cent, respectively. In addition, OGDCL is operator in 34 exploration licences and working interest owner in six other exploration blocks operated by various exploration and production companies.

The OGDCL is currently producing 43,807 barrels of oil, 1145mmcf of gas, 85mt of LPG and 96mt sulphur per day.

PPL being the oldest and largest exploration and production company is presently operating 16 different exploration blocks and is the working interest owner in 16 other exploration blocks operated by various exploration and production companies.

The PPL is operator of five producing fields: Sui, Kandhkhot, Mazarani, Adhi and Chachar with the total daily production of 684mmcfd of gas, 7,100 barrels oil and 157 metric tonnes of LPG.