A look at investments in Fuel Sector

Engineering Post Report

The oil and gas exploration and activities have been undertaken by the private sector E & P companies outside the Public Sector Development Programme (PSDP) of the Federal Government funding. Similarly, the gas transmission and distribution  activities have also been undertaken by generation companies GENCO‚Äôs at their own  through ogra tariff. However, laboratory  and gas supply schemes  to Special Economic Zones are included  in PSDP 2020-21 and 2021-22 as a special case due to being prioritized economic zones under China-Pakistan Economic Corridor (CPEC) for enhancing industrial development in the country.

During 2020-21, the production of crude oil was 27 million barrels against target of30 million barrels. The domestic production of natural  gas was 1.2 trillion cubic feet against target of 1.43 trillion cubic feet. These figures indicate production of both crude oil and natural gas during last financial year less than the target for varying reasons. The supplies of local LPG were 753051 tons.

A total of 28 wells including  13 exploratory and 15 development were drilled  against target of 80  including  44 exploratory and 36 development wells. Achievement against the target was even less than 30 per cent .

For enhancing the exploration  activities in the countries, six new exploration  blocks including  Killa Saifllah,Sharan and Suleiman Blocks in Balochistan, Sujawal Block in South Sindh and Jhelum, Lillah Blocks in Punjab have since been awarded to E & P companies through competitive biddings.

The award of new exploration  blocks was most likely to add new hydrocarbon reserves over the new few years and bridge  the oil and gas demand supply gap  in the country. The execution of new exploratory licenses with the operators will also enhance  investment in the petroleum sector, the official sources on being contacted showed their confidence.