PM forms high-level committee to revitalise oil and gas sector with $5 billion investment plan

ISLAMABAD: In order to revive Pakistan’s energy sector, Prime Minister Shehbaz Sharif has constituted a high-level committee to facilitate new investments of $5 billion in the oil and gas exploration and production (E&P) sector.

According to sources, this initiative is part of a broader strategy to address the energy needs and boost the nation’s oil and gas production capabilities.

On July 5, 2024, a high-level meeting was held at the Prime Minister’s Office, where the premier engaged in detailed discussions with key stakeholders from the E&P sector. Following these deliberations, the prime minister announced the formation of a comprehensive committee which is mandated to develop a strategic plan of short, medium, and long-term actions to resolve the issues faced by the E&P sector.

The committee’s composition includes the Deputy Prime Minister, Minister for Petroleum (as convener), Minister for Planning, Minister for Power, Minister for Finance, Minister for Interior, and Minister for Maritime Affairs. Additional members include the Secretary of the Petroleum Division, the Secretary of the PD&SI Division, the Secretary of the Power Division, the Secretary of the Finance Division, the Secretary of the Interior Division, the Secretary of the Maritime Affairs Division, and the Chairman of the Federal Board of Revenue (FBR). 

Industry leaders such as Mr. Andrzej Kaczorowski, Managing Director of the Polish Oil & Gas Company, Ali Al-Temimi, Country Manager of Kirthar Pakistan B.V., Ahmad Hayat Lak, Managing Director/CEO of the Oil & Gas Development Company Ltd., and Faheem Haider, Managing Director/CEO of Mari Petroleum Company Ltd. are also included.

The committee has been tasked with developing proposals to resolve circular debt in the gas sector and avoiding gas curtailment through integrated energy planning. It will also review and enhance the fiscal regime to attract investment, ensure enhanced security in high-risk areas without additional costs to the E&P sector, and promote a business-friendly environment for E&P companies and investors. 

Additionally, the committee will address contract-related issues and suggest improvements, attract investment in offshore exploration, and operationalize the Amended Petroleum Policy, 2012, and the Tight Gas Policy, 2024. 

Automation and digitization of the oil/gas exploration concession/licensing regime, benchmarking port charges for LNG cargoes against regional and international ports, and encouraging private sector and third-party imports of RLNG under long-term contracts are also within the committee’s scope. 

The committee has been granted the flexibility to co-opt additional members, including private sector experts, as needed. The Petroleum Division will provide secretarial support to the committee. The committee is expected to submit its recommendations within three weeks.

The Petroleum Division has been directed to expedite the notification process for the committee’s formation and to take all necessary actions to support its operations. This initiative underscores the government’s commitment to revitalising the energy sector and ensuring a sustainable and prosperous future for the nation. 

On Saturday, local and international firms announced an investment of $5 billion during the next three years in Pakistan’s oil & gas exploration and production (E&P) sector. This announcement was made in a meeting presided over by Prime Minis­ter Shehbaz Sharif at PM House on Saturday.

A delegation of the oil and gas exploration and production sector informed the meeting that during the next three years, around 240 potential reserves sites would be excavated with an investment of $5 billion to explore petroleum and gas.