Ministry of Energy (Petroleum Division)

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi exchanging the documents of the Signing Ceremony of the Exploration Licenses / Petroleum Concession Agreements for the 15 Blocks with the MD OGDCL, in Islamabad on 21st March, 2014

Oil & gas has been major global commercial energy source for decades and expected to play a leading role in future as well. Historically, Pakistan has been an oil importing country but has been fortunate that till recently most of the energy needs of the country were being met through indigenous gas production. However, due to depleting trend  of major gas fields and rapid increase in demand for natural gas, wide gap between demand and supply has emerged which is bearing negative impact on the economy. In order to bridge the gap, the present Government is giving high priority to develop indigenous hydrocarbon resources to minimize the demand and supply gap. Due to the untiring efforts of Ministry of Petroleum & Natural Resources and especially by the DGPC and his team and keen interest generated by the investment friendly and attractive policies, since taking over by the current government 78 numbers of wells have been spudded and 20 discoveries have been made so far. On 06.03.2014 the oil production in the country crossed 93,600 bbl per day, which is the highest oil production level achieved so far.

The Ministry of Petroleum & Natural Resources after taking all provinces on board in finalizing Model Petroleum Concession Agreement (MPCA) and Model Exploration Licence (MPCA), awarded   50 blocks on provisional basis to   nine   E & P companies on 21.01.2014. Out of which 21 blocks are falling in Balochistan, 15 in Punjab, 6 in  Sindh
and 8 blocks in Khyber Pakhtunkhwa Province. The Ministry has already signed (28) ELs  and PCAs  in  February, 2014.

The Government of Pakistan on 21st  March 2014 executed 15 more Petroleum Concession Agreements (PCAs) and 15 Exploration Licences (ELs) over Blocks No. 2564-2 (Parkini Block-A), 2763-5 (South Kharan), 2764-3 (Palantak), 2564-5 (Rasmalan West), 2865-3 (Kharan-3), 2561-1 (Gwadar), 3169-2 (Zhob), 2566-5 (Bela North), 2764-2 (Rakhshan), 3066-5 (Bostan), 2866-3 (Khuzdar North), 3370-14 (Tirah), 3171-3 (Khiu), 3273-4, 3070-17 (Layyah), and (Warnali)  3273-4   with  Oil & Gas Development Company Limited (OGDCL).

Parkini Block-A block is located in Awaran and Kech districts of Balochistan, South Kharan block in Kharan district of Balochistan, Palantak block in Kharan and Panjgur districts of Balochistan, Rasmalan West block in Awaran and Pasni districts of Balochistan, Kharan-3 in Kharan and Nushki  districts of Balochistan, Gwadar Gawadar,Pasni & Kech districts of Balochistan, Zhob block in Zhob,Musakhel   districts of Balochistan and in Fata, Bela North clock
in Khuzdar,Awaran and Lasbela disctricts of Balochistan,  Rakhshan block  in Kharan   district of Balochistan, Bostan block in Ziarat,Pishin,Killa Abdulla and Quetta    districts of Balochistan, Khuzdar North block in Khuzdar  district of Balochistan, Tirah block in Khyber, Kurram and Orakzai Agencies of Fata, Khiu block in Bhakkar and Khushab districts of Punjab, Layyah block in DG Khan and Muzaffargarh  districts of Punjab, Warnali block in Chakwal,Jhelum and Rawalpindi  districts of Punjab. The total area of aforesaid blocks is 32357 Sq. Km and minimum firm work commitment is US $ 39.19 Million.
Apart from minimum work commitment, companies are obligated to spend a minimum of US $ 30,000/year in each block on social welfare schemes.

OGDCL is a Public Limited Company engaged in Exploration & Production activities in the country for the last four decades. OGDCL holds the largest share of Oil (58%) & Gas (42%) of the total reserves in the country. Its percentage share of total Oil & Gas production in Pakistan is 52% and 27%, respectively. In addition, OGDCL is the
Operator in 48 exploration licences and working interest owner in 6 other exploration blocks operated by various E & P companies. OGDCL is currently producing 43,896 barrels of Oil, 1163 MMCFD of gas, 84 metric tons of LPG and 96 metric tons of Sulphur per day.

The execution ceremony was graced by Mr. Shahid Khaqan Abbasi , Minister for Petroleum & Natural Resources, Mr. Jam Kamal Khan, State Minister for Petroleum & NR and Mr. Zahid Muzaffar, Advisor to Ministry of  Petroleum & Natural Resources with their presence. The respective ELs and PCAs were signed by Mr. Abid Saeed, Secretary Petroleum and Natural Resources, Mr.Saeedullah Shah, Director General Petroleum Concessions, Mr. Riaz Khan, Managing Director, OGDCL and Directors from the provinces of Balochistan and Punjab.