Pakistan granted four petroleum exploration licenses last week, two jointly to Oil & Gas Development Co. or OGDC and Mari Gas Co., and two exclusively to OGDC. The two companies plan to invest $29.32 million, with a further investment of $16.5 million if needed, in the four blocks, government officials said.
While the country is looking for $400 million-$500 million in investment for 20 concession licenses during the current fiscal year that ends June 2005, only six have been granted so far. "Exploration activity has a long gestation period and therefore, results come over two to three years," G A Sabri, director-general of the Petroleum Concessions Ministry of Petroleum and Natural Resources, said at a signing ceremony for the licenses.
He said the first-ever offshore well was recently drilled in the country by French oil giant Total SA, while Pakistan Petroleum Ltd. plans offshore drilling in January 2005 and Shell Pakistan in the last quarter of 2005.
An offshore exploration concession will be granted to Italy's ENI in the next quarter, he also said.
The two shared blocks signed last week are Kohlu and Kalchas and are in the southwestern Balochistan province. The other two concessions, both of which went to OGDC, the Bagh is in the districts of Jhang and Toba Tek Singh in the main Punjab province while the Shahana is located in province of Baluchistan.
In the initial licensing period, OGDC will carry out geological and geophysical studies, a gravity study, seismic acquisition as well as data processing and interpretation. The company has been given one optional exploration license well each in the four blocks in the third year of the license.
OGDC is already operating 17 exploration licenses and 35 leases, with additional interest in 28 non-operated leases.