Exploration and production (E&P) companies are gearing up to invest $33.3 million in hydrocarbon exploration over the next three years across eight blocks, aiming to alleviate Pakistan’s ongoing energy crisis.
These companies recently signed petroleum concession agreements (PCAs) with the government, securing exploration licenses for their endeavors.
The designated blocks, including Kotra East, Murradi, Sehwan, Zindan-II, Multanai, Sawan South, Gambat-II, and Saruna West, hold the promise of bolstering the nation’s hydrocarbon reserves.
Minister for Power and Petroleum Muhammad Ali emphasized that these agreements not only stimulate investments in the petroleum sector but also aid in narrowing the energy demand-supply gap.
Under the agreements, E&P firms are mandated to allocate a minimum of $30,000 per year per block for local social welfare initiatives.
Despite the lackluster response from foreign entities, Pakistani firms, predominantly state-owned, have stepped forward to seize these opportunities.
This move comes at a critical time when Pakistan is working to attract foreign investors amidst challenges like policy inconsistencies, corruption cases, and bureaucratic hurdles, which have driven many international energy companies away from the country over the past decade.
