‘Govt initiative in exploration sector to attract investment’

F.P. Report

ISLAMABAD: Caretaker Federal Minister of Energy, Muhammad Ali, expressed hope on Thursday that the government’s initiative in the exploration sector would attract investment in the oil and gas sectors.

During his presentation at the National Seminar on “Pakistan’s Economy Crisis: Challenges and the Way Forward,” organized by NUST, the minister outlined that the government is set to permit leading oil and gas E&P companies, including OGDCL, PPL, GHPL, Mari Gas, and foreign entities, to directly sell 50 percent of gas to the private sector and the remaining 50 percent to state-owned gas companies.

This initiative aims to encourage companies to invest more in oil and gas exploration.

Muhammad Ali emphasized the importance of geographical and seismic studies to enhance onshore and offshore exploration.

He called for investment in refineries, explorations, and terminal infrastructure, stressing the need for research and development in hydrocarbons, renewables, and minerals sectors to meet domestic energy requirements.

The minister highlighted the significance of optimizing allocations for natural gas, revisiting priority orders, and revising Petroleum and LPG policies for the conversion of domestic consumers from natural gas to LPG. He also advocated for devolution of power to ease business processes and investment in Genco’s for efficiency improvement.

Muhammad Ali emphasized the need for investment and capacity building in transmission lines between the south and north regions.

He underscored the importance of E&P sector reforms, a supportive investor policy, and stakeholder inclusiveness to channel untapped natural resources. The minister further said that indigenous gas is majorly consumed by the Power, Domestic sector, industry, and Fertilizer sector.

The rapid decline in resources is to be met through costlier imports, requiring a significant push to exploration activity and demand destruction.

He said that Pakistan needed to learn from the world’s best practices, indigenizing resources, and providing a level playing field to boost investor confidence and affordability in the country for economic stability and growth. (APP)