By Staff Reporter
ISLAMABAD: The Economic Coordination Committee of the cabinet ECC) on Tuesday approved technical supplementary grants totalling Rs50.94 billion for defence and security projects and cleared a new offshore oil and gas exploration consortium under Turkish operatorship, as the government seeks to bolster national security and revive foreign investment in the energy sector.
The finance ministry said in a post on X that Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which was attended by federal ministers, special assistants to the prime minister, secretaries and senior officials. The committee approved “several strategic grants and reforms aimed at strengthening Pakistan’s security framework, defence capabilities, food security, and petroleum sector operations”, the ministry said.
Specific approvals included a technical supplementary grant of Rs100.3 million for maintenance of defence equipment used by federal civil armed forces, Rs841.56 million for enhanced border management, internal security and law and order, and Rs50 billion for defence services projects.
The ECC also approved the establishment of a special purpose vehicle with initial paid-up capital of one million rupees to wind up the state-owned Pakistan Agriculture Storage and Services Corporation, and measures to encourage foreign participation in offshore oil and gas exploration, including licence extensions and working interest assignments.
In a separate decision, the committee cleared Turkish Petroleum Overseas Company (TPOC) to assume operatorship of Eastern Offshore Block-C. Adviser to the Finance Minister Khurram Schehzad said on X that the ECC had approved Pakistan Petroleum Limited’s (PPL) request to assign part of its interest in the block to TPOC, Mari Energies and state-owned Oil & Gas Development Company Ltd (OGDCL). PPL will retain a 35% stake while TPOC will hold 25% and operate the block once a formal agreement is signed. “This will bring valuable international offshore operating experience to Pakistan’s exploration landscape and this transition is expected to enhance technical capabilities, operational efficiency, and overall project delivery,” Schehzad wrote.
He added that the block contains a drill-ready prospect that the new consortium will pursue, a move that could draw fresh foreign capital. “With the ECC’s approval, the consortium is now set to advance preparations for drilling operations, marking a new chapter in the country’s pursuit of energy security and resource development.” Schehzad said the block contains a drill-ready prospect that the consortium will now pursue, a step he added could attract fresh foreign investment.
In October, bids were awarded for 23 of 40 offshore blocks offered, covering around 53,500 square kilometres, in Pakistan’s first offshore bidding round since 2007. Pakistan’s 300,000 square kilometre offshore zone, bordering energy-rich Oman, the United Arab Emirates and Iran, has seen just 18 wells drilled since independence in 1947, too few to fully assess its hydrocarbon potential.
Meanwhile, Vitol and Cnergyico, Pakistan’s largest oil refiner, have delivered the country’s biggest single shipment of very low sulphur fuel oil for ship refuelling, the global trading firm said in a statement late Monday.
The move will enable large vessels refuelling in Pakistan to now sail longer routes from east to west without needing to stop elsewhere, while also giving Pakistan a stronger local supply of environmentally compliant marine fuel.
This shipment came from Cnergyico’s first large-scale batch of fuel that meets International Maritime Organization (IMO) low-sulphur rules. The company began producing it after importing its first US crude oil cargoes in August and September.
Vitol delivered the VLSFO to a vessel owned and operated by shipping major MSC at Port Qasim, using a Singapore-flagged bunker barge Marine Ista that has the capacity to supply 6,800 metric tons of marine fuel in a single delivery.
It was also the first barge to load fuel directly from the Karachi Port Trust’s Oil Pier rather than through truck deliveries. Cnergyico will continue providing Vitol with this cleaner marine fuel, according to Vitol. “This latest initiative enhances Pakistan’s capacity to serve the global shipping industry with sustainable fuel solutions,” said Aumar Abbassciy, director at Cnergyico Pk Limited.
Vitol’s new bunker locations in Pakistan will include Karachi Port, Port Qasim, and Karachi Anchorage, according to Vitol’s bunker trading and marketing manager, Ammar Hussaini.
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