Pakistan’s Oil and Gas Sector to Boost with $5 Billion Investment

Pakistan’s Oil and Gas Sector to Boost with $5 Billion Investment

Islamabad, July 6, 2024 – In a promising development for Pakistan’s energy sector, a delegation of local and international oil and gas exploration and production (E&P) companies announced a significant investment of $5 billion over the next three years. The announcement came during a meeting with Prime Minister Shehbaz Sharif at the Prime Minister’s House.

Expressing confidence in the leadership of Prime Minister Sharif, the delegation outlined plans to explore and excavate around 240 locations across Pakistan. This ambitious project is expected to significantly increase the country’s oil and gas reserves.

Recognizing the need for a supportive policy framework, Prime Minister Sharif established a committee headed by Deputy Prime Minister Ishaq Dar. Comprised of industry experts, government officials, and relevant authorities, the committee will work with E&P companies to develop attractive policies that incentivize exploration and development activities. The committee will prioritize addressing existing challenges faced by the sector and propose solutions to further streamline operations.

The delegation welcomed the Prime Minister’s commitment to open communication and collaboration. They expressed their appreciation for being included in the decision-making process and highlighted the importance of finding solutions to longstanding issues.

During the meeting, officials highlighted Pakistan’s current domestic production of oil and gas, which stands at 70,998 barrels and 3,131 Million Standard Cubic Feet per Day (MMSCFD) respectively.

Emphasizing the importance of self-sufficiency, Prime Minister Sharif urged the companies to explore Pakistan’s offshore reserves in addition to onshore exploration. He underscored the government’s priority to develop domestic oil and gas resources, a move that would significantly reduce reliance on expensive imports and contribute to energy security.

“Exploration of oil and gas reserves at the local level is our top priority,” stated Prime Minister Sharif. “Pakistan spends billions of dollars annually on importing oil and gas. By increasing domestic production, we can save valuable foreign exchange and make fuel and gas more affordable for our citizens.”

The Governor of the State Bank of Pakistan, Jamil Ahmed, informed the meeting that all remittances owed to the oil and gas companies, following the Prime Minister’s specific instructions, had been settled and delivered to their respective countries.

The meeting was attended by prominent figures including Deputy Prime Minister Ishaq Dar, several federal ministers, the Deputy Chairman of the Planning Commission, the Coordinator to the Prime Minister, and the Chairman of the Federal Board of Revenue. Representatives from domestic and international E&P companies, along with relevant high-level officials, also participated in the discussions.

This significant investment by E&P companies, coupled with the government’s focus on creating a supportive policy environment, signifies a positive step towards bolstering Pakistan’s energy sector and reducing dependence on imported fuels. The successful exploration and development of domestic oil and gas reserves hold the potential to enhance energy security, stimulate economic growth, and make energy more affordable for the Pakistani people.