Ishaq Dar chairs 5th session of the Exploration & Production Committee
ISLAMABAD, Nov 18 (SABAH): Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Monday chaired the 5th session of the Committee constituted by the Prime Minister to develop a comprehensive action plan for addressing the challenges faced by the Exploration and Production (E&P) sector in Pakistan.
Building on the discussions from previous sessions, several key decisions were made to improve the sector’s outlook.
The Committee reached an in-principle agreement to submit a long-awaited framework to the Executive Committee of the National Economic Council (ECNEC) for the sale of 35% of the unallocated gas volumes to third-party buyers. The framework includes a 100 million standard cubic feet per day (mmscfd) cap for the first year, with annual reviews thereafter.
In another significant move, the Committee decided to initiate a bidding round for available onshore exploration blocks by December 2024. The deadline for bid submissions is set for March 15, 2025. In parallel, a separate bidding process will be launched for offshore exploration blocks, with a six-month period allowed for potential bidders to evaluate the offered blocks and make their bids by 30th of June 2024.
The Committee was also updated on the ongoing digitization efforts of the Directorate General of Petroleum Concessions (DGPC). A competitive process has been initiated to advance this digital transformation, which will streamline operations and enhance efficiency in the sector.
Additionally, the Committee was informed about the launch of an Integrated Energy Modelling Study, being conducted by internationally recognized consultants. This study will focus on the role of oil, gas, and LPG in Pakistan’s energy mix, provide insights into supply-demand dynamics, and develop a comprehensive gas market model. The findings from this study, which are expected to inform policy decisions on gas supply management for priority sectors, will be presented in a draft report due in January 2025.
The Committee also discussed a proposal to revise gas sale prices on a monthly or quarterly basis. After careful deliberation, the Committee directed the Petroleum Division to further analyze the proposal and resubmit it at the next meeting.
The committee also discussed the security challenges faced by exploration and production companies and emphasized that provision of fool proof security is of paramount importance for promoting investment in E&P sector for energy security of Pakistan. Due to prior commitments of some Committee members, it was decided to reconvene the next session at a later date to continue discussions on the remaining items outlined in the Terms of Reference (TORs) of the Committee.