Islamabad: Dr. Asim Hussain Advisor to the Prime Minister on Petroleum and Natural Resources has said that Government will facilitate and extend full cooperation to investment in the country’s oil & gas sector.
He said this while addressing the inaugural session of the Annual Technical Conference ATC jointly organized by Pakistan Association of Petroleum Geoscientists PAPG and Society of Petroleum Engineers SPE on Tuesday.
He said that Government while reaffirming its commitment towards bridging the widening gap between demand and supply and securing a safe energy future, the Petroleum Exploration and Production Policy 2012 was announced on August 27, 2012.
In addition to the Tight Gas, Low BTU Gas, LNG and LPG policies issued earlier, this is the second petroleum policy issued by the present Government almost 2 years after the 2009 policy, with an aim to attract new investment for exploitation of indigenous natural resources and decrease reliance on imports. Dr. Asim Hussain emphasized upon the E&P companies to make most of these polices.
Advisor on Petroleum further said that the primary objective of this comprehensive policy is to optimize the processes and procedures, tax and pricing regime in respect of the petroleum exploration and production sector and provide new stimuli for increasing exploration and production investment by modifying current contracting terms and incentives while taking into account current market conditions.
The major incentive provided in the new policy is on wellhead gas price, which has been revised upward to attract investment, both from existing and prospective investors. The Government is also working on Shale Gas Policy Framework, which is in an advanced stage of finalization, along with preparation of Marginal and Stranded Gas and Low Pressure Gas policies as well as Guidelines for Flared Gases to tap available resources for the benefit of the country.
The Government is also working on bringing in gas through the Iran-Pakistan IP and Turkmenistan-Afghanistan-Pakistan-India TAPI Gas pipeline projects to meet growing energy demand in the country. Advisor on Petroleum informed that the Government has recently announced a new exploration bid round offering 60 exploration blocks along with Road Shows in Houston and London scheduled in early December to showcase the Petroleum Policy 2012 and lure the multinational companies to participate in this bid round.
Earlier, Mr. Moin Raza Khan, Chairman ATC 2012 and Dr. Saeed Khan Jadoon Chairman SPE Pakistan welcomed the Advisor on Petroleum and the distinguished guests.