Oil and gas exploration : Petroleum policy attracted $2.02bn investment in 3 years

* Efforts afoot to explore more oil, gas reservoirs
Oil and gas exploration :  Petroleum policy attracted $2.02bn investment in 3 years

ISLAMABAD: The government has promulgated investor-friendly petroleum policy, attracting investment of about $2.02 billion for oil and gas exploration in the country during the last three years. 
The policy envisages incentives which include better gas price, windfall levy reduced from 50 percent to 40 percent, base price for crude oil and condensate increased from $30 per barrel to $40 per barrel, says official sources.
“Ceiling of $100 per barrel is replaced with $110 per barrel, while renewal of lease will also be ensured, after expiry of lease term for another five years subject to payment of amount of 15 percent of the wellhead value,” the source added.
Similarly the sale of 90 percent share of pipeline specification gas to government of Pakistan and 10 percent by exploration and production companies to any buyer with prior consent of the government is another step to encourage foreign investment.
The official said a bonanza of $1 per million British thermal unit (MMBTU) shall be given for first three discoveries in offshore area.
The policy 2012 gas price will also be extended to the lease for additional 10 percent production over and above the commitment of development plan approved by the government, the source said.
For the purpose of pricing and delivery obligations for natural gas, the source said, the gas will be delivered at outlet flange (field gate/ delivery point).
While for offshore, the gas will be delivered at the nearest access point to an existing regulated transmission system or at the shore within coastal locations.
Award process for 50 new exploration blocks is being finalised in consultation with the provinces.
In order to exploit shale gas reserves of the country, USAID is providing technical assistance to Ministry of Petroleum and Natural Resources via appointment of experts in the shale gas policy formulation and technology support for exploitation of unconventional gas resources.
Approval to commence project has been granted in October 2013 and it will take nine months to complete.
The government has also introduced Tight Gas Policy 2011 to extract gas from tight gas reservoir by offering additional gas price, the source added. 

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