No announcement yet.

Offshore exploration package soon: President Tarar

  • Filter
  • Time
  • Show
Clear All
new posts

    Offshore exploration package soon: President Tarar

    This is very good news indeed that Pakistan is soon to develop a plan for offshore oil and gas production. If the estimates are correct then Pakistan has more oil reserves than the UK - which is one of the biggest oil producers in the world. With the brilliant efforts of Usman Aminuddin and partnership with Abu Dhabi hopfully Pakistan will be able tap its vast potential, and become one of the biggest oil and gas producers in the world.

    Offshore exploration package soon: Tarar

    By Rafaqat Ali

    ISLAMABAD, Oct 8: President Rafiq Tarar said on Sunday that the government had developed a package for offshore exploration, based on production sharing, which would be announced shortly.

    Inaugurating the three-day international oil and gas conference-2000, the president said that Pakistan had vast offshore area, equal to the UK North Sea and added that for promoting investment in the petroleum sector and the investors' confidence, Pakistan was establishing stable and transparent legal, fiscal and regulatory regimes.

    "We will maintain the sanctity of contracts and ensure the continuity of GOP policies. Simultaneously, we are establishing a system that maintains a balance between the interests of all stakeholders."

    He stated that recent tough decisions because of an unprecedented increase in the crude oil prices had affected the common man, but those were "absolutely necessary" for maintaining economic discipline.

    The president hoped that pressure on crude oil prices would ease in near future and the benefit would be passed on to the consumers immediately.

    He said the petroleum companies which were making money due to price spiral should intensify their efforts to find and develop more oil and gas.

    The conference is being organized by the Petroleum Institute of Pakistan and Mediators Pvt Ltd to provide an opportunity for an exchange of ideas between the private sector and the government officials.

    Petroleum Minister Usman Aminuddin said that Pakistan was an energy deficient country and the enormous oil import bill placed a very heavy burden on its economy.

    He said Pakistan's indigenous oil supply was around 57,000 barrel a day, satisfying only 16 per cent of a daily requirement of 350,000 barrels a day. The annual demand growth rate of the commodity has been over 5pc a year over the last five years.

    He said the oil import bill stood at $3 billion - a big drain on the country's foreign exchange reserves. Also, the gas supply demand gap was expected to grow to around half a billion cubic feet a day by 2010, he noted.

    He said the government had adopted strategy to replace imported oil with indigenous gas. Development of the newly-discovered gas fields, with the potential of producing almost a billion cubic feet a day, was hampered mainly because of the lack of agreement with the multinational companies on the price structure. "I am pleased to say that we have recently resolved this issue and have arrived at a mechanism acceptable to all stakeholders."

    Replacement of fuel oil being used in power generation with gas would begin in 2001 with the supply of 120 million cubic feet gas a day from Zamzama to the Guddu power station.

    However, the minister conceded that in some areas of Balochistan exploration activity could not be started even after one year of the military government. He said that force majeure was causing headaches and the government was actively working to find out a solution to this "chronic" problem.

    He said the ministry had started reviewing rules governing oil and gas exploration and production in the country, and efforts were made to bring the rules in line with the international industry standards.

    The minister told delegates that deregulation of the entire petroleum sector was one of Pakistan's major objectives. Import of liquid petroleum gas and furnace oil has been deregulated and the import of diesel oil was next on the list, he said, adding that the government also wanted to end freight pool system.

    The production of the Pak-Arab Refining Company (Parco), he said, had increased Pakistan's total refining capacity from 6.5 million tons to 11 million tons per annum.

    He said the government of Abu Dhabi, 40pc partner in Parco, would contribute another $28 million to the equity of the project which was estimated to cost $550 million.

    Babar Ayaz, managing director of Mediators, said that 205 participants would attend the conference - 64pc of whom were from multinationals.

    Damn good idea, finally we have sensible group in govt.
    It is time to develop infrastructure and use our resources to their potential.
    3 ports, oil rigs, export increase by 25% in sea food, heck we are doing alot in our water, but what about land infrastructure and irrigation???

    You can't fix stupid. So might as well troll them!



      UK???? Saudia is the largest exporter of cuder oil... 35% in intl market... Next is Iran with 30%... Dunno who is after that though...

      But I heard about this too... Great news yaara. They are also planning some more onshore drilling...

      ...aur bhayya, kaise ho?


        Paan I said the UK was ONE of the biggest oil producers in the world NOT the biggest - it produces some 2.5 million barrels of oil a day - its in the top 15 of oil producers not sure of the exact ranking though. - I can get the exact figures...

        Yes, Saudi is the biggest with 8 million barrels + a day.

        But if Pakistan can reach the UK's level its pretty good going... it will mean we will become self sufficient in oil.

        Well done President Tarrar, well done CE!

        [This message has been edited by Malik73 (edited October 11, 2000).]