ISLAMABAD – We may be on the verge of discovering massive oil reserves inPakistan, according to the caretaker minister for maritime and foreignaffairs, Abdullah Hussain.
Mr. Hussain mentioned that ExxonMobil, the US-based energy company, is onthe verge of discovering huge oil reserves close to the Pakistan-Iranborder, which may be even bigger than Kuwait’s reserves.
The minister said this while addressing Federation of Pakistan Chambers ofCommerce and Industry (FPCCI).——————————
ExxonMobil has currently drilled up to 5000 meters near the Iranian borderand is thoroughly optimistic about the oil reserve discovery.Top 10 Oil Producers in The World
If the reserves do turn out to be as massive as expected, it will putPakistan among the top 10 oil producing countries, at the 6th positionabove Kuwait.
Currently, Kuwait possesses 8.4% of the world’s oil reserves and claimsthat they have nearly 101.5 billion barrels of crude oil. The country alsoowns 2.5 billion barrels in the Saudi-Kuwaiti neutral zone.
Mr. Hussain said that the government has already forged an agreement withExxonMobil for a $10 billion “generation complex”. He said,
They are also putting up an LNG berth at Port Qasim, the second seaport inKarachi. They have already paid for the drilling rights inPakistan. Pakistan is providing a level playing field to foreign investorsand they are interested in coming to Pakistan. What we need to do is tomeet their standards and attract them to make investment.
ExxonMobil made the headlines earlier in May 2018, when the companyacquired a 25% stake in offshore drilling in Pakistan. The agreement wasinked at Prime Minister’s Secretariat between Oil and Gas DevelopmentCorporation, Government Holding Private Limited PPL and Eni.
It should be noted that most of Pakistan’s import bill is based on oilimports. The country only manages to meet 15% of its demand through locallyproduced crude oil, which is around 22 million tons, while the other 85% isimported.
Current account deficit for Pakistan stands at $18 billion. Pakistan’simports stood at $12.928 billion in the July-May 2017-18 period for thelast fiscal year.
This discovery alone has the potential to solve one of the biggest problemsPakistan currently faces.
We’ll have to wait and see if ExxonMobil’s prediction actually pans out.
*Via ArabNews link*