E&P firms make 6 oil/gas discoveries in June

ABDUL RASHEED AZAD

ISLAMABAD: National and International oil/gas Exploration and Production (E&P) companies operating in Pakistan have
made six oil/gas discoveries in June which is a record in a single month.
This was stated by Federal Minister for Petroleum Shahid Khaqan Abbasi while briefing National Assembly Standing
Committee on Petroleum and Natural Resources which was held here on Tuesday under the supervision of Chaudhary
Bilal Ahmed Virk.
Abbasi said that 50.1 million cubic feet per day (mmcfd) of gas and 2,359 barrels of crude oil had been added into the
system from new oil/gas discoveries, adding that four out of six discoveries were made in Sindh province and two in
Khyber Pakhtunkhawa (KP).
He said that state owned Oil and Gas Development Company Limited (OGDCL) had made two discoveries, MOL BV
Pakistan two, Pakistan Electron Limited (PEL) one and United Energy Pakistan (UEP) also made one discovery. The
energy firms have discovered 31.6 mmcfd gas and 339 barrels per day crude oil in Sindh province whereas 18.5 mmcfd
gas and 2020 barrels oil in KP province.
Responding to queries of committee members, Managing Director (MD) Sui-Northern Gas Pipelines Limited (SNGPL)
Amjad Latif said gas utilities were not in a position to provide connections to all the applicants. He added that SNGPL
was receiving 1.1 BCFD of gas and many major gas resources were rapidly depleting as 100 mmcfd of gas was
depleting from SNGPL dedicated gas fields.
He maintained there was even no gas available for domestic consumers in winter, adding that purchasing cost of gas for
domestic consumers stood at Rs 510 per mmbtu but 85 percent domestic consumers which come under first slab were
paying just Rs 110 per mmbtu.
He said 85 percent domestic consumers were paying less than 50 percent cost of gas. Industrial and commercial
consumers were cross-subsiding these consumers. However, commercial and industrial consumers had been switched
to LNG and therefore, burden of cross subsidy was being shouldered by SNPLG which had hit the company. Despite
decline in gas production, he informed the body that 8,000 kilometers pipeline would be laid during ongoing year. He
said that SNGPL had network of 0.3 million consumers whereas 1.5 million application for new connections were
pending.
The country was facing gas shortages as politicians were using it as a tool to win elections. During the meeting, Member
National Assembly from PML-N Mian Tariq Mehmood snubbed MD SNGPL Amjad Latif and alleged that company had
issued 100 gas meters in his constituency to please his political rival Imtiaz Safdar Warriach despite the fact he said that
he had been denied despite repeated requests. He said his political opponent Imtiaz Safdar Warraich had been creating
hurdles for PML-N but MD SNGPL had issued gas meters in response to his request to damage his political image.
Chairman Committee Bilal Virk showed anger on Director General Petroleum Concession (DG) PC Saeed-ullah Shah
and accused of him for not responding to the committee for last two years. He said his attitude was non-sense and
lamented that he was not cooperating with the committee. He sought record of the past meetings to show response of
DGPC.
The committee also took up the matter of issuing LPG stations licenses to the defaulters. The committee noted that
licenses had been issued to defaulters CNG stations. The committee recommended amending rules of Ogra to ensure
clearance of SNGPL, WAPDA and banks before issuing LPG stations licenses.

All rights reserved to Business Recorder (Date: 2016-06-29 printing date: 28-07-2016 18:08:31)

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