ISLAMABAD: On Thursday, the National Assembly Standing Committee on Energy (Petroleum Division) was briefed that no company is currently interested in offshore oil and gas exploration in Pakistan, following the dry well at Kekra-1 in 2019.
During the meeting, chaired by Committee Chairman Syed Mustafa Mehmood, members questioned the lack of interest from international companies in Pakistan’s oil and gas sector. Petroleum Minister Musadik Malik informed the committee that major oil and gas companies are exiting Pakistan. This statement led committee members to inquire about the reasons behind this trend.
The minister explained that global companies prefer countries with a favorable business environment. He added, “The security cost is also a significant issue for oil and gas exploration in Pakistan. Companies have to spend a substantial amount to ensure the security of their employees and assets in exploration areas.
However, he mentioned ongoing discussions with two Chinese companies regarding investments in both onshore and offshore exploration activities in Pakistan. The committee was also informed that Pakistan has made 467 oil and gas discoveries to date, including 96 oil and 371 natural gas discoveries. Malik emphasized the need to increase local oil and gas exploration as domestic supplies are depleting. “We are working on a new oil and gas exploration policy to attract investments in Pakistan,” he added.
The minister also noted that global liquefied natural gas (LNG) supply is on the rise, with Qatar set to increase its LNG supply by 33% next year, among other sources.
Secretary of the Petroleum Division, Momin Agha, provided an extensive overview of the ministry’s operations and its affiliated departments. He stated that the country consumes approximately 4.2 billion cubic feet of gas daily, including 1 billion cubic feet of LNG per day.
The committee was informed that the gas sector’s circular debt stands at around Rs2,000 billion, with small domestic gas consumers receiving a Rs130 billion subsidy, which is transferred to other gas users. Petroleum division officials also highlighted the increasing difficulty in managing LNG prices and suggested that the power sector should take over the entire LNG supply. The petroleum minister pointed out that the energy sector is facing cash flow challenges related to fuel, with the state-owned oil marketing company Pakistan State Oil (PSO) also experiencing difficulties.
The meeting was attended by Syed Naveed Qamar, Muhammad Nawaz Khan, Shahid Ahmed, Anwarul Haq Chaudhary, Rai Haider Ali Khan, Dr. Shizra Mansab Ali Khan Kharal, Gul Asghar Khan, Salahuddin Junejo, Muhammad Moin Aamer Pirzada, Asad Alam Niazi, and Mian Khan Bugti.