ISLAMABAD, Jan 26: Pakistan granted a licence on Thursday to a local firm, Techno Petroleum (Pvt) Ltd, to explore for oil and gas in a block in central Punjab.

The firm plans to invest $3.70 million in the exploration block in Bahawalpur and Rahimyar Khan districts. It covers an area of 2,230 sq-km.

Techno Petroleum will also drill one exploratory well in the first three years, the petroleum ministry said in a statement.

Pakistan’s liberal exploration policy has attracted interest from domestic as well as foreign firms in recent years, making oil and gas the country’s largest investment area.

Pakistan imports 85 per cent of its energy needs, including about $4 billion worth of oil 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.—Reuters