Govt grants oil exploration license to Kuwaiti firm

Published May 22, 2019
KUFPEC subsidiary will explore the Makhad block located in Kohat, Attock, Mianwali and Chakwal for oil. — Reuters/File
KUFPEC subsidiary will explore the Makhad block located in Kohat, Attock, Mianwali and Chakwal for oil. — Reuters/File

The Petroleum Division has granted Kirthar Pakistan BV — a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec) — the license for exploration of oil in the Makhad block, a press statement by the energy ministry said on Wednesday.

The division said that the government has executed an Exploration Licence (EL) as well as a Petroleum Concession Agreement (PCA) — signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad Saleem Siddiqui, the director general of Petroleum Concessions, and the CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Minister for Petroleum Omar Ayub Khan.

On the occasion, the petroleum minister said that "the execution of PCA and EL will attract foreign investment in the petroleum sector and bridge the demand and supply gap in the energy sector."

Khan further said that the efforts will bear fruit in future years in the form of hydrocarbon reserves.

The Makhad block, according to the press release, is situated in Attock, Mianwali and Chakwal in Punjab as well as Kohat in Khyber Pakhtunkhwa. It is said to be spread over 1,562.92 square kilometres.

Kufpec will invest at least $9.8 million in the block, as per the press release issued. Apart from the minimum firm work commitment, the company is also obligated to spend a minimum of $30,000 per year in Makhad block on social welfare schemes.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...
Provincial share
Updated 17 Mar, 2024

Provincial share

PPP has aptly advised Centre to worry about improving its tax collection rather than eying provinces’ share of tax revenues.
X-communication
17 Mar, 2024

X-communication

IT has now been a month since Pakistani authorities decided that the country must be cut off from one of the...
Stateless humanity
17 Mar, 2024

Stateless humanity

THE endless hostility between India and Pakistan has reduced prisoners to mere statistics. Although the two ...