Foreign oil, gas firms leaving Pakistan, selling their assets: Petroleum Division Secretary
ISLAMABAD-Secretary Petroleum Division has said that only three foreign companies are currently working in the oil and gas sector in the country, as international companies are leaving Pakistan and selling their assets.
While briefing the NA committee, Secretary Petroleum Division Muhammad Mahmood said that due to continuous depletion of gas reservoirs installation of new gas connections would not be possible. The Standing Committee on Energy (Petroleum Division) met under the chairmanship of Aamir Talal Gopang, MNA. Secretary Petroleum said Pakistan is high risk country for investors, and there is fear of default which is discouraging foreign investment in the country. Uncertain political situation, inconsistency in policies are major problems in bringing the international companies for investment in the country, he added. Secretary Petroleum admitted that the sale of Iranian oil in the country has increased a lot. Petroleum product and LPG import from Iran is not possible due to international sanctions. The Committee also recommended to the federal government to channelise import and sale of Iranian petroleum products in the country which would add up revenue in govt exchequer besides eliminating smuggling.
Secretary Petroleum further said that right now the diesel storage in the country is full and there is no place to store it. Due to this situation, the import of two cargoes of diesel was cancelled, Secretary Petroleum added. On the import of Russian oil, Secretary Petroleum informed that it will be procured under the price cap. The Committee decided to discuss Pakistan Petroleum Upstream Regulatory Authority Bill after thirty days providing opportunity to Petroleum Division to address the concerns raised by provinces on the Pakistan Upstream Regulatory Authority Bill, 2021. DG Petroleum Concession while briefing the committee said that provinces have reservations on Pakistan Petroleum Upstream Regulatory Authority Bill 2022. There are differences between the federation and the provinces on the bill, he added.
The Committee was apprised that on its directions a reference was made to the Cabinet Committee on Energy for lifting up of moratorium on new gas connections to the extent where demand notices had been deposited. The Cabinet Committee did not agree with the proposal on the pretext of non availability of gas which was further ratified by the Federal Cabinet. The Secretary Petroleum informed that due to continuous depletion of gas reservoirs installation of new gas connections would not be possible. He suggested that a serious thought should be given to shift the gas to power sector for cheaper electricity generation for further use for domestic purposes. He further apprised that the Division has identified various offshore and onshore blocks which would be offered for exploration of gas and petrol. He said that offshore exploration had huge potential.
The government is trying to mitigate the depletion of gas reserves and for the purpose working on new exploration blocks. They have identified 19 offshore blocks, and 12 offshore blocks to be auctioned in June.
Official of Sui Northern Gas Pipeline Limited informed that no demand notice issued after September 2021 Sui Northern authorities. The Committee later approved the Gas (Theft Control and Recovery) Amendment Bill, 2023 as introduced in the National Assembly. The powers of federal government would be delegated to Minister for Law for establishment of gas utility courts, setting up of territorial limits of the courts and for disposal of day to day business in that connection. The Committee further directed the Division to pass on instructions to all the exploration and production companies to prioritise employment opportunities to skilled and unskilled workforce in their area of operation. The Committee also directed to ensure supply of gas to locals population residing within five km of the radius of the gas fields.
Article source: https://www.nation.com.pk/14-Apr-2023/foreign-oil-gas-firms-leaving-pakistan-selling-their-assets-petroleum-division-secretary