ISLAMABAD – After a study made startling revelations about fast depletionof existing hydrocarbon reservoirs in the country, the Petroleum Divisionhas devised a strategy to reinvigorate oil and gas exploration activitiesby awarding more blocks and providing more incentives in both offshore andonshore drilling.“On November 26, 2018, as many as 10 new exploration blocks have beenawarded through open bidding and the same number of new blocks will be putup for the bidding during first quarter of 2019 – by March,” officialsources told APP.According to data of the recent study, they feared that the existingdeposits would further deplete 60 percent by the year 2027 and underlinedthe need for stepping up exploration activities in potential areas onwar-footing.“The gap between demand and supply is widening with each passing day,increasing our reliance on imported petroleum products including gas,” thesources said.They said during last five to six years, new exploration licences had notbeen awarded despite the fact the existing reserves were depleting fast andthe country needed some big discoveries.Replying to a question, the sources said “currently around 72 cases withregard to exploration licences are in litigation, even some are pendingsince 1989, due to flaws in the system.”They said 15 percent needs of the petroleum products were being met throughlocal production, while 85 percent through imports, for which on average $18 billion per year year were spent on import of petroleum productsincluding gas.To reduce import bill and achieve self-sufficiency in the petroleum sector,the sources said a radical and innovative petroleum policy was being workedout to attract local and foreign companies for investment in onshore andoffshore exploration ventures in potential areas. The new policy would befinalized, keeping in view future needs of power and industrial sectors,they added.Besides, they said a mega oil city, consisting of a oil refinery andpetrochemical complex, was being set up at the Gwadar deep seaport city incollaboration with Saudi Arabia, while world leading companies Exxon Mobileand ENI had already started offshore drilling in the Indus-G block.
18 billion Oil Imports: PTI government prepares new petroleum strategy
