Oil exploration

Tender floated for 18 new blocks; Oil exploration companies encouraged to work in High risk areas

According to the Petroleum Division there has been a 7 percent decline in domestic gas production and 5 percent growth in consumption compared to winter 2018, thereby effectively creating a 12 percent gap between consumption and supply. Due to this growing disparity between supply and demand of oil and gas the petroleum division has decided to expedite the process of oil exploration in the country

In this regard an international tender has been issued for 18 new blocks for oil and gas exploration. According to the 2018 Pakistan Energy Factbook, the country has recoverable oil reserves of (1,247 million barrels), gas (57.4 Trillion Cubic Feet (TCF)), and coal (186 billion tons). Out of the total 57 TCF of gas discovered so far, 38 TCF has been extracted, leaving 19 TCF expected to last for a further 13 to 14 years.

At present, there are three zones – Zone-I, Zone-II and Zone-III for onshore hydrocarbon exploration on the basis of risk and investment requirements. West Balochistan, Pishin and Potohar Basins fall in Zone-.  Kirthar, East Balochistan, Punjab and Suleman Basin come in Zone-II while the Lower Indus Basin falls under Zone-III. To encourage companies to work in high risk areas Petroleum Division  has proposed additional incentives for oil and gas exploration and production (E&P) companies to the Council of Common Interests (CCI).