LAHORE, Jan 25: The Pakistani government announced yesterday that four oil and gas companies have signed agreements to invest over $33 million in the country’s petroleum sector.
The agreements include Exploration Licenses (ELs) and Petroleum Concession Agreements (PCAs) for several oil and gas blocks across the country. The companies that signed the agreements are Oil & Gas Development Company Limited (OGDCL), Pakistan Oilfields Limited (POL), United Energy Pakistan Limited, and a joint venture between POL, Pakistan Petroleum Limited (PPL), and OGDCL.
Federal Minister for Petroleum, Muhammad Ali, said during the signing ceremony that these efforts will benefit the nation by increasing hydrocarbon reserves in the coming years. He added that the ELs and PCAs will boost investment, help close the energy supply-demand gap, and unlock the sector’s potential.
Under the minimum work commitments for these agreements, the companies will spend over $33.3 million on exploration activities in the blocks over three years. Further hundreds of millions of dollars will be invested by the companies if commercial discoveries are made in these blocks.
Additionally, the companies have committed to spend a minimum of $30,000 every year on social welfare projects in local communities near the blocks.