Govt grants oil exploration license to Kuwaiti firm
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The Petroleum Division has granted Kirthar Pakistan BV — a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec) — the license for exploration of oil in the Makhad block, a press statement by the energy ministry said on Wednesday.
The division said that the government has executed an Exploration Licence (EL) as well as a Petroleum Concession Agreement (PCA) — signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad Saleem Siddiqui, the director general of Petroleum Concessions, and the CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Minister for Petroleum Omar Ayub Khan.
On the occasion, the petroleum minister said that "the execution of PCA and EL will attract foreign investment in the petroleum sector and bridge the demand and supply gap in the energy sector."
Khan further said that the efforts will bear fruit in future years in the form of hydrocarbon reserves.
The Makhad block, according to the press release, is situated in Attock, Mianwali and Chakwal in Punjab as well as Kohat in Khyber Pakhtunkhwa. It is said to be spread over 1,562.92 square kilometres.
Kufpec will invest at least $9.8 million in the block, as per the press release issued. Apart from the minimum firm work commitment, the company is also obligated to spend a minimum of $30,000 per year in Makhad block on social welfare schemes.
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May 22, 2019 07:42pm
"Minister says the move will attract investment and bear fruit in future." Prove it.
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May 22, 2019 07:49pm
How about granting license for exploration of KEKRA-2?
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May 22, 2019 07:53pm
Let's be optimistic. Three was so much grief expressed when one drilling effort failed in striking oil even though it's well known that not all drillings are successful. One has to persevere. At least some investment coming in, who knows this time it would be successful.
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May 22, 2019 08:12pm
A positive step taken towards exploration of oil and gas reserves in the country. The discovery of the Minerals is the need of the day to give a push to stagnated economy. Wishing them best of luck.
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May 22, 2019 08:14pm
$30000 a year? this is surely a joke.
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May 22, 2019 08:32pm
Going through the same cycle again, expecting a different outcome. Your money!
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May 22, 2019 08:32pm
Kuwait has oil but do they have the expertise to explore! Doubt it not that they don’t have the knowledge but the experience in E&P especially offshore ?
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May 22, 2019 08:33pm
Going through the same cycle again, expecting a different outcome. Your money!
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May 22, 2019 08:38pm
@Liman Gashkori, He is the minister, he does not need to prove it. He got himself in front of the cameras and press, his job is done.
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May 22, 2019 08:43pm
Good luck!
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May 22, 2019 08:47pm
"Minister says the move will attract investment and bear fruit in future." Like common people of Pakistan having fruits from CEPC?
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May 22, 2019 08:55pm
@ashok, it’s called business and attempting to do something. The alternative is sit at home and cry.
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May 22, 2019 09:09pm
Real Jackpot
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May 22, 2019 09:10pm
@ashok, Mehmood Gaznavi also repeated the same cycle 17 times ;)
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May 22, 2019 09:17pm
IK should invite Gasprom the Russian energy company instead of Europeans,Americans or middle eastern companies.
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May 22, 2019 09:21pm
@Liman Gashkori, This is something in the future if reserves are discovered. How do you prove something that is expected in the future?
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May 22, 2019 09:24pm
@Tamilselvan , most of the oil exploration done in Kuwait is by European companies although Kuwaiti companies jointly run them.
Is it worth giving licence to such companies. Or is it the beginning of another scam.
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May 22, 2019 09:49pm
So much activity, so many investors, oil find is inevitable. Patience is a virtue.
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May 22, 2019 09:56pm
9.8 million dollars is petit cash in the oil exploration business. What they will be able to achieve on such a tiny budget?
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May 22, 2019 10:42pm
Very conservative investment
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May 22, 2019 11:10pm
Exploration should never stop, keep digging
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May 23, 2019 12:30am
Sir Albert Einstein once said insanity is doing the same thing over and over again and expecting different outcomes.
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May 23, 2019 01:42am
@Liman Gashkori, Kufpec will invest at least $9.8 million in the block, this does not look investment to you.
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May 23, 2019 01:48am
@narendranath paul, Why India is so much worry about Pakistan?
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May 23, 2019 02:14am
@ashok, jealous?
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May 23, 2019 02:15am
Good luck.
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May 23, 2019 02:30am
well lets hope for the best
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May 23, 2019 02:46am
@ashok, this is not offshore drilling. Its attaock area which is yielding oil right now. Please read before commenting.
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May 23, 2019 03:06am
Don’t waste your money.
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May 23, 2019 03:45am
@narendranath paul, what fruit a common man in india getting from GDP Growth rate? HDI, GDP per capita is still same
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May 23, 2019 03:46am
@Philosopher (From Japan), like electing a PM again and again.
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May 23, 2019 03:47am
@Chaya , agree! They will also do it for cheap
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May 23, 2019 04:08am
@ashok, actually it's not. It's the companies money.
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May 23, 2019 04:23am
@ashok, does it bother you?
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May 23, 2019 04:39am
Best of luck this time. Hopefully your difficulties disappear soon. But any oil find can’t solve problems of nation of 200 millions people. To do that you need a broad decade long policy. The problem is that politicians want to invest in quick show projects to reap benefits in coming elections. Anyway best of luck.
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May 23, 2019 05:03am
When would the oil exploration will start in the south west of Pakistan, we know that there are oil reserves around the border of Afghanistan and Iran...
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May 23, 2019 05:11am
@Philosopher (From Japan), Than should be stop working on oil exploration?
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May 23, 2019 07:01am
@Liman Gashkori, look at the sky at you will see the proof...or much better you are Liman G. Prove it ...
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May 23, 2019 07:13am
Kufpec will invest at least $9.8 million in the block, as per the press release issued. Apart from the minimum firm work commitment, the company is also obligated to spend a minimum of $30,000 per year in Makhad block on social welfare schemes.
I work in the oilfields of East Texas, I can tell you one thing, $9.8 Million is chump change if you are doing any type of exploring, specially when you are talking about an area of over 1500 square Kilometers, oh and that $30,000 per year in Makhad, that has got to be spent on the lunch alone.
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