Islamabad: Khyber-Pakhtunkhwa (KP) government has floated an idea for getting petroleum exploration rights which would be granted to provincial energy companies for a new block in partnership with a federal energy company without passing through the bidding process.
This plan had been forwarded to relevant ministries of the federal government for seeking their opinion before the ultimate submission of this proposal before the Council of Common Interests (CCI).
As the KP govt’s plan, every provincial energy division would need to enter into joint ventures with renowned companies to start work on the new exploration block.
A one-off waiver is being sought by KP government in regard to the allotment of a new petroleum exploration block to every provincial energy company in their own provinces and one block be awarded to Government Holdings Private Limited (GHPL) in any area of Pakistan.
A 25pc working interest will be offered in their own blocks by each federal holding and provincial holding company, per the suggestion. Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited will also be offered 25pc working interest.
Subject to acceptance from GHPL, PPL and OGDC, these stakes will not be binding and in case of rejection, the provincial holding companies will become 100pc holders of the working interesting. All provincial companies will be needed to keep at least a 50pc working interest.
The condition set by the federal government requires provincial energy entities to be majority stakeholders in these awarded blocks before CCI considers this proposal.
It also said these awarded blocks to provincial entities will only be available for offer to Pakistan’s public-sector exploration and production companies, including GHPL.
In case the proposal gets approval, all provincial energy entities will then sign a petroleum concession agreement.
