By Staff Reporter
ISLAMABAD: The government awarded six onshore oil and gas exploration blocks to local and foreign companies on Friday, but four other blocks received no bids despite an extension of the deadline, the Petroleum Division said.
The division, which oversees the energy sector, said in a statement that it had invited bids for 10 blocks in August and extended the deadline by two weeks to Nov. 30 after receiving limited feedback.
United Energy Pakistan, a subsidiary of Hong Kong-listed United Energy Group, won two blocks with 100 percent stakes, while the rest were secured by joint ventures of state-run and private firms, the statement said.
This included a joint venture of operator Pakistan Oilfields Ltd (40 percent) with partners Pakistan Petroleum Ltd (PPL) and Oil & Gas Development Company Ltd (OGDCL) having 30 percent shares each.
Two other blocks were secured by OGDCL with 100 percent shareholding while another block was jointly acquired by operator PPL with 70 percent shareholding with the remaining 30 percent stakes from OGDCL.
The blocks offered for bidding include six in Sindh, three in Balochistan and one in Punjab. The six blocks in Sindh included Murradi (2767-7), Malir-II (2467-18), Sawan South (2668-26), Mithiani (2667-17), Gambat -II (2668-25) and Zamzama West (2667-18).
The three blocks in Balochistan included Saruna West (2666-1), Kalata North (2966-4) and Kotra East (2867-8) while one block in Punjab was Rachna-II (3071-6). The exploration blocks that did not receive any offers were one in Punjab (Rachna-II), two in Sindh (Malir-II and Zamzama West) and Kalata North in Balochistan.
The successful bidders committed to invest at least $23.25 million over three years to explore the blocks, which are located in the provinces of Sindh, Punjab and Balochistan. They will also spend more than $540,000 on social welfare projects in the areas of their operations, it added.
Pakistan is trying to boost its domestic oil and gas production and reduce its dependence on costly imports. The country has been facing an energy crisis for years, with frequent power outages and gas shortages affecting millions of consumers and businesses.
However, the interest from foreign companies has been low, as most of them have left the country in recent years due to security and economic challenges. In June, the government received bids for only three out of 18 blocks that were offered.
The country has proven reserves of 24.7 trillion cubic feet of natural gas and 345 million barrels of oil, according to the U.S. Energy Information Administration. However, its production has been declining, while its consumption has been rising. The country imported about 85% of its oil and 43% of its gas needs in 2021.
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