ISLAMABAD: Prime Minister Imran Khan said on Wednesday the government was formulating a new petroleum policy to provide incentives to the oil exploration and production (E&P) companies working in the country.

“In order to capitalise on the potential of the sector, the government is working on a new petroleum policy, offering incentives to foreign E&P companies and removing impediments to undertaking smooth and profitable business ventures,” Mr Khan was quoted as saying during his meeting with the chief executive officer of the Kuwait Petroleum, Shaikh Nawaf Saud Al-Sabah, who called on him along with a delegation.

Federal Energy Minister Omar Ayub Khan, Punjab’s Energy Minister Dr M. Akhtar Malik and Petroleum Secretary Mian Asad Hayauddin were also present on the occasion.

Shaikh Nawaf briefed the prime minister about his organisation’s business ventures in Pakistan’s oil exploration sector that have been active since the 1980s. He expressed interest in expanding the organisation’s business activities in the country.

Incentives will be offered to foreign exploration companies under the fresh policy

Prime Minister Khan assured the Kuwaiti delegation of his government’s continued support to their company. He highlighted various steps that the government has taken to improve the environment and facilitate foreign investment.

Mr Khan praised the Kuwaiti company’s contribution to imparting training to the local manpower in the E&P sector.

Punjab’s energy minister briefed the meeting about various initiatives being taken by the provincial government in the petroleum sector.

Meanwhile, Dr Atta-ur-Rehman called on the prime minister and apprised him of the progress made so far in setting up the Pak-China University of Engineering and Emerging Technologies at the Prime Minister House, as announced by Mr Khan at his inauguration.

Dr Rehman also informed the prime minister of the projects undertaken by the Knowledge Economy Task Force.

Agreement signed

State-run Kuwait Foreign Petroleum Exploration Company (KUFPEC) said on Wednesday its Pakistan unit had secured a concession for the Makhad oil block in Punjab, reports Reuters.

The KUFPEC said in a statement that it had signed a concession agreement with the Pakistani authorities on behalf of its subsidiary Kirthar Pakistan (KPBV).

“At this stage, KPBV anticipates acquiring seismic data and drilling one exploration well,” it said.

The KUFPEC is the international oil and natural gas exploration and production unit of the Kuwait Petroleum Corporation.

The Makhad Exploration Licence and PCA was signed by Petroleum Secretary Hayauddin and Qazi Mohammad Saleem Siddiqui of the Directorate General of Petroleum Concessions on behalf of the Pakistani government and chief executive officer of the KUFPEC, according to a press release.

Published in Dawn, May 23rd, 2019