The National Assembly’s Standing Committee on Energy (Petroleum Division) was informed on Thursday that no company was interested in offshore oil and gas exploration in Pakistan following the dry well at Kekra-1 in 2019.Â
The session, chaired by Syed Mustafa Mehmood, saw members inquiring about the lack of interest from international players in the country’s oil and gas sector.
Petroleum Minister Musadik Malik briefed the committee, explaining that major oil and gas companies are leaving Pakistan, gravitating towards countries with more favorable business environments.Â
“The security cost is also a problem for oil and gas exploration in Pakistan. Companies have to spend significantly to maintain security for their employees and assets,” he said. However, Malik added that discussions are underway with two Chinese companies for investments in onshore and offshore exploration activities.
The committee was informed that Pakistan has made 467 oil and gas discoveries to date, including 96 oil wells and 371 natural gas wells.Â
Malik emphasised the need to increase local exploration as supplies are running low, and noted that a new oil and gas exploration policy is being developed to attract investments.
Additionally, Malik mentioned the global rise in Liquefied Natural Gas (LNG) supply, highlighting Qatar’s plan to boost its LNG supply by 33% next year.Â
Petroleum Secretary Momin Agha provided an overview of the ministry’s functions, informing that Pakistan consumes about 4.2 billion cubic feet of gas daily, including one billion cubic feet of LNG.
The committee was also apprised of the Rs2,000 billion circular debt in the gas sector and the Rs130 billion subsidy for small domestic gas consumers, which is passed on to other users.Â
The meeting, attended by several members including Syed Naveed Qamar and Muhammad Nawaz Khan, highlighted the ongoing challenges in the energy sector, including cash flow issues and difficulties in managing LNG prices.
