Petroleum Division identifies 40 new blocks to step up E&P activities

ISLAMABAD, Feb 7 (APP):The consumption of petroleum products stood at 20.03 Million Ton (MT) during the last fiscal year, out of which the country produced around 2.80 MT indigenously.

“The contribution of local refineries is almost 63 percent of the total consumption. Per barrel price of petrol produced is about US$ 72.50,” according to an official document available with APP.

The share of transport sector in total consumption of the country during July 2018-June 2019 remained about 14.67 MT, out of which petrol usage was 7.56 MT and diesel 6.67 MT.

According to another report, the Exploration and Production (E&P) companies, operating in different parts of the country, produced 89,030 Barrels per Day (BPD) oil, 3,935 Million Cubic Feet per Day (MMCFD) gas during the same period.

The overall energy mix of the country comprises of 34 percent natural gas, 9 percent Liquefied Natural Gas (LNG), 31 percent oil, 1 percent Liquefied Petroleum Gas (LPG), 13 percent coal and remaining from other sources, A senior official privy to petroleum sector developments told APP that the government was working on a multi-pronged strategy to increase production of petroleum commodities by revamping the existing oil refineries and opening up the sector for private companies to create an environment of competition.

“Three oil refineries, out of six existing facilities, were inefficient, and the government has announced a 10-year tax exemption for them to increase their capacity. The given concession would also be applicable for new deep conversion oil refineries.”

Replying to a question, he said the overall storage capacity of Motor Spirit (MS) and High Speed Diesel (HSD) oil had witnessed around 13.07 percent increase during the fiscal year 2018-19 as compared to the corresponding year.

He said the storage capacity for both the MS and HSD oil had been increased from 1,712,691 MT to 1,936,550 MT during the period.

The MS oil storage capacity was enhanced from 490,408 Metric Ton (MT) to 594,299 MT, showing 21.18 percent increase. While, the HSD oil storage capacity was expanded from 1,222,283 MT to 1,342,251 MT, projecting 9.81 percent increase.