ISLAMABAD: US energy giant ExxonMobil has expressed interest in drillingmore offshore blocks in search for hydrocarbon reserves and is also lookingto make investment in the liquefied natural gas (LNG) sector in Pakistan.
At present, ExxonMobil is drilling an offshore well namely Kekra-I as partof a joint venture with Italy’s Eni, Oil and Gas Development Company (OGDC)and Pakistan Petroleum Limited (PPL).
In a meeting with Federal Minister for Petroleum Division Omar Ayub Khan onTuesday, a delegation of ExxonMobil said they were optimistic that energyresources would be discovered at Kekra-I. The delegation was headed byExxonMobil LNG Market Development Chairman Alex Volkov.
ExxonMobil President Irtiza Syed briefed the minister and Special Assistantto Prime Minister on Petroleum Nadeem Babar about offshore drilling, sayingEni and ExxonMobil had started work on Kekra-I in January 2019.
He revealed that ExxonMobil was interested in drilling more offshore blocksand in LNG business. Apart from this, ExxonMobil could help Pakistan inframing an environment-friendly policy for offshore drilling.
The minister said Pakistan government would provide all assistance tointernational investors, adding that after completion of exploration workon Kekra-I, employment would be generated.
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The joint venture is drilling Kekra-I well in ultra-deep waters in theIndus-G block. The well will be drilled up to the depth of 5,660 metres andthe joint venture has so far reached the depth of 4,810 metres. Thedrilling has entered the phase where oil and gas deposits can be estimated.
The entry of ExxonMobil into Pakistan is a positive signal for theexploration and production sector of the country. The Petroleum Divisionhas drafted Pakistan Offshore (Exploration and Production) Rules 2019 andModel Production Sharing Agreement 2019, which will be sent to the cabinetfor approval.
In a bid to woo foreign investors, the government has waived duties andtaxes on the import of drilling equipment.
