ISLAMABAD, Nov 8: Hungary is considering an investment framework to help its investors invest in Pakistan's various fields, including oil and gas and telecom sectors. "We have decided to greatly facilitate our investors to invest here for which we plan to provide them certain framework," Hungarian Foreign Minister Ms Kinga Goncz said on Wednesday.

Addressing a news conference after the signing of new petroleum concession agreement (PCA) between Pakistan and the Hungarian Oil and Gas Company--MOL, she said there existed a lot of new business opportunities in Pakistan and its investment policy was also very liberal and competitive.

She said once the new framework was in place, several Hungarian companies would like to come to Pakistan for making investment in various fields.

She called for early signing of investment protection agreement with Pakistan which she believes will help promote Hungarian investment in Pakistan.

MOL company has been allowed by Pakistan to explore oil and gas in Punjab, the NWFP and the federal capital territory.

The concession agreement was signed by Additional Secretary Ministry of Petroleum and Natural Resources Shaukat Hayat Durrani and executive vice-president of MOL Group Zoltan Aldott.

The signing ceremony was also witnessed by the visiting Foreign Minister of Hungary Ms. Kinga Gvncz and Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon.

Her country, Ms Goncz said, was the biggest exporter of mobile phones besides, manufacturing international quality hydro equipment. The purpose was to bring investment and her country will certainly do that to further strengthen political and economic relations between the two countries, she added.

Responding to a question, the executive vice-president of MOL said that his company had already shown interest in the privatisation of Pakistan Petroleum Limited (PPL). In fact, he said, MOL was one of the few companies, which had been short-listed by the Privatisation Commission to take part in the disinvestment of PPL.

"But then we are also interested to make more investment by taking part in other privatisation transactions being finalised by the government of Pakistan," he said.

To a question he said two blocks--Margalla and Margalla North, spreading over districts in Punjab, the NWFP and the Federal Capital Area--have been identified for exploration.

MOL Pakistan Oil and Gas B.V, which is a subsidiary of MOL Group, has been allowed to work in Block No (3372-20) covering an area of 1386.73 sq. km and Block No (3372-21) covering an area of 1561.72 sq. km.

Federal Minister Amanullah Khan Jadoon, while speaking on the occasion said that the government was encouraging foreign investors to come and invest in exploration activities as the country's growing economy needed more energy resources.

The signing of the new concessions agreement is reflective of MOL Group's long-term commitment to invest in energy sector of Pakistan, said Mr Zoltan Aldott.

"Pakistan is one of the key countries for MOL Group and we will continue to look at other opportunities in midstream and downstream, like the privatisation of PPL, SSGPL and SNGPL," he said.The foreign minister of Hungary said that the MOL Group was the largest Hungarian investor in Pakistan and its presence and success was encouraging other investors from Hungary to explore investment options in the rapidly developing economy of Pakistan.

Under the agreement the company will invest $2.1 million in each block independently during the initial period of two years of the license and shall carry out environmental studies, G&G studies, 2D seismic acquisition, its processing and interpretation, re-processing of existing seismic data and will drill exploratory wells based on the results of the data. The work in both the blocks will commence simultaneously.

He said if the new wells indicated oil and gas, the MOL was expected to make $35 million to $40 million investment in each field, he said.

MOL Pakistan has made significant hydrocarbon discoveries in Tal block and is the operator of the block. Tal block joint venture is between MOL Pakistan, PPL, POL, OGDCL and GHPL. The company is already supplying 50 million cubic feet per day natural gas from its Manzalai-1 (Gurguri) well to SNGPL at Kohat.

It also produces further 15 million cubic feet per day of natural gas and 1,500 bbl per day crude oil from Makori-I. It has recently announced successful completion of tests for the third well called Manzalai II.