According to state-run APP, a consortium of domestic and foreign oil and gas exploration and production (E&P) businesses is prepared to spend $5 billion in Pakistan’s petroleum industry, demonstrating their confidence in the government’s investor-friendly policies and guarantees for the protection of their investments.
As pressure on Islamabad to support the nation’s shaky energy infrastructure grows, an announcement to this effect was revealed during a meeting on Saturday between a group of domestic and foreign E&P businesses and Prime Minister Shehbaz Sharif.
If it comes to pass, it will reduce the nation’s dependency on pricey oil imports while also helping to provide the country’s expanding population with more dependable energy sources.
During the discussion with the delegation at Prime Minister House, PM Shehbaz stated, “Our top priority is exploring the oil and gas reserves at the local level in Pakistan.” He also extended an invitation to the oil and gas explorers to explore Pakistan’s offshore deposits.
The PM criticised the fact that Pakistan spends billions of dollars a year importing gas and oil. “Production from local reserves will save Pakistan’s precious foreign exchange, and the average person will be able to afford gas and fuel.”
Pakistan is experiencing a severe balance of payments crisis, record inflation, and dramatic currency devaluation. As a result, the majority of its energy needs are imported, as the country lacks the means to run its oil and gas installations.
As a result of increased demand and fuel limitations, loadshedding, or scheduled power outages, happens every summer. There are 241 million people living in this nation, and the length of these blackouts vary depending on the location.
The delegates told the prime minister that around 240 exploratory wells worth $5 billion will be dug in Pakistan in order to look for gas and petroleum over the course of the following three years.
The gathering was informed that in order to attain maximum self-sufficiency, Pakistan’s domestic output, which is now at 70,998 barrels of oil and 3,131 MMSCFD of gas per day, needs to be dramatically expanded.
The PM instructed the relevant authorities to prioritize solving all of the sector’s difficulties and to form a committee that would work with the explorers. Deputy Prime Minister Ishaq Dar would serve as the chair of the new committee, which would be made up of specialists, secretaries, and the appropriate authorities.
Following stakeholder participation, the group will make recommendations to establish a compelling policy for Pakistan’s gas and oil reserves’ exploration and exploitation.
