PETROLEUM AND NATURAL RESOURCES

The People’s Government inherited the severe energy shortfall hitting all aspects of national life. To cope with the challenge various steps have been taken. In the Petroleum and Gas sector, the main focus is on increasing exploration activities in the country to enhance oil and gas production. It will not only reduce the foreign exchange outlay but also provide a reliable source of local supplies.

 Following are the Exploration and Production sector’s performance and achievements during the last four years.

 Low BTU Gas Exploration Policy for Power Sector is also being formulated. Tight Gas (Exploration and Production) Policy 2011 has been approved by the CCI. Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) Policies have been introduced to enhance LPG availability and to encourage LNG import. In offshore 14 exploration licenses are operating.

Gas Load Management Programe has been introduced for equitable distribution of Natural Gas among consumers including Industries, Fertilizers, CNG, Power Sector, Commercial and Domestic Sector with first priority.

 In order to exploit the natural oil and gas resources, 47 exploration licenses were granted, 102 exploration wells were dug and 38 discoveries were made. Gas production increased from 3973 MMcfd to 4165 MMcfd. An amount of Rs. 172.834 billion exclusive of 2% collection charges was recovered as royalty and rental fee of oil and gas. Rs. 48.5 billion have been paid as dividend to the Government by Government Holding (pvt) Limited.

The following new gas connections have boon granted:

Work of Iran-Pakistan Gas Pipeline Project is at a fairly advanced stage. Iran-Pakistan Gas Pipeline Project envisages the construction of approximately 800 km pipeline from Iran- Pakistan border to Nawabshah. The IP project has entered into the implementation phase and work on Front End Engineering and Design (FEED), Feasibility and Detailed Route Survey has already been started by the Consultant which is scheduled to be completed by June, 2012. Thereafter, bids shall be invited for Construction of the Pipeline.

 Likewise Turkmenistan-Afghanistan-Pakistan & India (TAPI) Gas Pipeline Project with estimated cost of US$ 7.6 billion has been initiated and the parties achieved consensus on a number of issues.

PSO is undertaking a pipeline project in Joint Venture with Karachi Port Trust (KPT) for connecting Kemari Port with Port Qasim for transporting petroleum product.

Byco Oil Pakistan Limited (BYCO) is relocating an Oil Refinery Project of capacity of 120,000 Barrel per day (5 million tons/annum).

Trans Asia Refinery Limited (TRL) is relocating a 100,000 barrels per day (BPD) (4.5 M. Tons/annum) Oil Refinery with the objective of supplying petroleum products to the local market and reducing deficit imports.

The Government has also approved setting up of new State of the Art Deep Conversion Grass Root Oil Refinery of capacity of 250,000 barrels per day at Khalifa Point, near Hub Balochistan.

HDIP is a scientific and technical arm of the Ministry, oil, gas and energy sectors facilitate private sector investment by promoting guidance & advice. It completed a number R &D projects and provided consultancy service to E&P companies by analysing drill cutting and other samples.

Geological Survey of Pakistan

The Geological Survey of Pakistan completed geographical mapping of 6,400 sq km in Sindh, 9,460 sq km in Balochistan, 4320 sq km in Punjab and 3280 sq km in KPK.

 It completed ground penetration Radar Survey for Benazir Bhutto Shaheed International Airport. Drilling is in progress for underground coal gasification (UCG) project at Thar Coalfield, besides other investigation for minerals and precious metals are in progress in Balochistan , AJK and in KPK.

OGDC

OGDC performance in the last few years shows an aggressive exploration approach. From average 15-18 wells a year it is now drilling more than 21 wells a year. This has endowed us with some major discoveries like Mela & Noshapa in KPK, contributing in enhanced production of oil & gas.

Pakistan Petroleum Limited (PPL)

Pakistan Petroleum Limited is the first exploration and production (E&P) company to resume exploration activities in Balochistan, despite security concerns and have completed geographical fieldwork and gravity magnetic surveys in six block. It has the portfolio of 35 exploration licenses. The company drilled 17 exploratory and five appraisal wells in PPL and Partner –operated-blocks and drilling in two appraisal wells is also in progress.

Sui Southern Gas Company

Sui Southern Gas Company (SSGC) is Pakistan’s premier natural gas utility organization engaged in the transmission and distribution of natural gas in the franchise areas of Sindh and Balochistan. The company operated through more than 3500 km high pressure transmission and 36785 km distribution network extending across the two southern provinces of Sindh and Balochistan.

The company caters to over 2.2 million customers comprising 3863 industrial units including several large power plants and 24156 commercial customers in 33 districts, 120 tehsils and 1920 exploration.

Sui Northern Gas Pipeline Ltd

SNGPL is the largest integrated gas transmission and distribution company serving more than 3.9 million consumers in North and Central Pakistan through an extensive network in Punjab, Khyber PakhtunKhwa and Azad Jammu & Kashmir.

Pakistan State Oil

 PSO recorded unmatched after tax earnings of Rs. 14.78 billion in 2011 and

helped in the revenue collection of more than Rs. 161 billion to the GOP-sales tax: 97 billion, taxes: 1.4 billion, PDL: 61 billion, in 2009..

Government Holdings (Pvt) Ltd

 The Government Holdings Private Ltd is a company involved in exploration and development in the oil sector and gas. 45 exploratory/appraisal and 23 development wells were drilled by JVs, where GHPL is a partner with 16 discoveries, resulting in addition of 153 BCF of Gas & 18 MMBBL of Oil in GHPL reserves assets.

Pakistan Mineral Development Corporation

PMDC was incorporated in July, 1974 as a Private Limited Company under the administrative control of Ministry of Petroleum and Natural Resources.

PMDC is operating 04 coal mines i.e. Degari, Sor-Range and Sharigh Coal mines in Balochistan and Lakhra Coal Mines in Sindh. PMDC is operating 4 salt mines i.e. Khewra, Warcha and Kalabagh Salt Mines in Punjab and Jattal Bahadurkhel Salt Quarries in Khyber Pakhtunkhwa.

CONTRIBUTION TO THE NATIONAL EXCHEQUER

Pakistan Arab Refinery Companyy

PARCO is the only refinery in the country to have achieved the capability of producing Euro II quality diesel, in which maximum sulphur content is 0.05wt%. this was achieved on completion of the US$ 132 Million Diesel Hydro-desulphurization Project in November 2010 well ahead of the revised GOP implementation date of July 2014. This has gone a long way in reducing the overall country pool of sulphur in diesel.

 In order to improve the production slate of the refinery the company has embarked on a US$ 35 million project for manufacturing high grade asphalt. Construction work on the project has already commenced and is expected to be completed by July 2012. The new plant will have the capability of producing up to 500 M. tons of high grade asphalt per day.