Govt takes action against inactive companies in oil, gas sector

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ISLAMABAD, Dec 1 (APP): The Government has tightened noose around Exploration and Production (E&P) companies for failing to start exploration work as per their obligations, revoking 10 exploration licenses.
“The government has initiated action against the non-performing Exploration and Production companies including those who were holding licenses for the last so many years without any physical activity,” official source disclosed.
The source said the action would act as a wakeup call for non-performing E&P companies and will boost the exploration and production activities in the country.
“As a result of action 10 exploration licenses have been revoked after providing them
adequate opportunities to remedy the defaults and after completing the necessary regulatory
process,” the source added Similarly, the official said 15 notices had also been issued to defaulting companies which were under process as per applicable rules After taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), the sitting government, he added, has so far awarded 46 new petroleum exploration licenses which is a record performance in the history of Pakistan.
He said for the first time government has fulfilled its commitment and has so far
processed 94 applications for conversion to the new petroleum policy 2012 through
execution of Supplemental Agreements.
During the current tenure of this government, record 227 wells have been drilled
which resulted in 65 new oil and gas discoveries, around 560 MMCFD of additional gas and
27,000 BOPD of oil has been injected in the system so far.
By virtue of these discoveries, so far over one TCF of gas and 16 Million of barrels
of new oil reserves have been added. For the first time in the history of Pakistan, domestic
oil production has touched the highest level of 100,698 bbl per day of oil on 07.12.2014.
“The performance is the result of effective monitoring of E&P activities in
accordance with the work commitments.
In order to expedite processing of various cases of E&P companies and to bring more
transparency in the system, he added, rules have been amended, economic model and
petroleum reserve model and comprehensive SOPs have also been developed.
The official of the ministry said since the government was fully appreciating the
country’s growing energy needs with gas demand swelling to over six billion cubic feet per
day (Bcfd) and depleting hydrocarbon resources, thus multi-pronged strategy was being
pursued to ease energy crisis.
He said the government had to import Liquefied Natural Gas (LNG) as low-hanging
fruit to meet energy needs besides working on long-term projects such as Pakistan-Iran gas
pipelines, TAPI projects and so many measures on domestic front.
He said the major gas reservoirs of the country were depleting fast, necessitating to
explore more resources to meet the country’s gas demand.
He said geo-political situation badly affected the ambitious transnational projects
including Pakistan-Iran gas pipeline and the TAPI project.