ISLAMABAD: The National Assembly’s Standing Committee on Energy (Petroleum Division) was informed on Thursday about the dwindling interest of international companies in offshore oil and gas exploration in Pakistan. This follows the dry well result of Kekra-1 in 2019.
Chaired by Syed Mustafa Mehmood, the committee session focused on understanding the reasons behind this decline. Petroleum Minister Musadik Malik explained that major oil and gas companies are exiting Pakistan, primarily due to challenges in ease of doing business and security concerns. “Companies face significant security costs in exploration areas, impacting their overall investment decisions,” the minister highlighted.
Despite the setbacks, discussions are ongoing with two Chinese companies for potential investment in both onshore and offshore exploration activities.
To date, Pakistan has witnessed 467 oil and gas discoveries, including 96 oil wells and 371 natural gas wells. However, Minister Malik emphasized the urgency of ramping up local exploration efforts due to depleting supplies. “A new oil and gas exploration policy is being developed to attract more investments,” he added.
Petroleum Secretary Momin Agha provided an overview of the ministry’s operations, noting that the country consumes 4.2 billion cubic feet of gas daily, including one billion cubic feet of LNG. He also highlighted the sector’s circular debt of Rs2,000 billion and the Rs130 billion subsidy provided to small domestic gas consumers, which is then passed on to other users.
Minister Malik also pointed to the rising global LNG supply, citing Qatar’s plans to boost its supply by 33% next year.
