ISLAMABAD
Contrary to its tall claims of providing a boost to oil and gas exploration and production activities in the country, Pakistan Muslim League-Nawaz (PML-N) government has not awarded any new exploration blocks licenses during the past four years, it was learnt reliably.
Ironically, the last bidding round for the award of new exploration blocks licenses took place in March 2013 as the government didn’t award any oil and gas exploration lease during the past four years of its tenure.
Dozens of Exploration & Production (E&P) companies have requested for the award of blocks but all remained in vain so far as their requests are in pending with the petroleum ministry. Meanwhile, the country had spent $ 11 billion on the import of petroleum products to the country, which was fifth of the total import bill during the past fiscal year.
Pakistan Petroleum Exploration and Production Companies Association (PPEPCA), which is a representative body of local and foreign companies engaged in exploration and production of petroleum, has written a letter to the petroleum ministry and voiced against the delay in the award of new exploration blocks.
According to PPEPCA’s letter, the last bidding round of award of new exploration block licenses took place in March 2013; thereafter, more than 25 requests (as per PPIS annual report 2015-16) for the award of blocks were made by E&P companies which are still pending. “As you are aware that sustained exploration activity and maintaining investor interest requires a regular grant of new blocks,” the letter added.
“We understand that one of the key hurdles to the fresh invitation for bids is the obtaining of NOC/security clearance from the law enforcement agencies as well as provincial authorities. However, section 3.2 of the Petroleum Policy 2012 clearly mentions that no area clearance would be required for concession blocks falling inside the white/green areas.”
Urging expeditious issue of an invitation to bid as entailed in section 3.2.1 of the policy for the award of the pending new block applications rather than waiting for another bidding round, the PPEPCA has advocated that security clearance should not be an impediment.
In the letter, addressed to petroleum ministry, PPEPCA has also complained about the availability of a copy of the map of white/green areas mentioned in all petroleum policy documents issued by the government.
Though Directorate General of Petroleum Concession (DG PC) is responsible for award exploration leases and bringing new investment, however, it hasn’t produced tangible results due to several challenges being faced by DG PC that includes the shortage of workforce; companies’ employees are deputed to work in the most sensitive department, delaying reorganisation of DGPC.
Sources at petroleum ministry informed this scribe that the ministry has been waiting for the NOCs which will award 41 new exploration blocks to oil and gas exploration companies operating in different parts of the country. They said that as many as 41 new blocks will be awarded after receiving no-objection certificates (NOCs) from the defence ministry.
