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Unexplored reserves: Balochistan govt can receive Rs 25bn royalties - LRE - 10-05-2008 12:08 AM
Unexplored reserves: Balochistan govt can receive Rs 25bn royalties
By Zafar Bhutta
ISLAMABAD: The Government has estimated the potential of unexplored oil at 9 billion barrels and gas reserves at 80 trillion cubic feet in Balochistan province, sources in Petroleum Ministry told Daily Times.
Sources said that if only 5 percent of the said oil and gas reserves is explored, Balochistan would receive the additional royalty of Rs 25 billion on both oil and gas. The province would have an additional royalty of Rs 11 billion on oil and Rs 14 billion on gas reserves per annum. They said that total oil production in the Balochistan province stood at 22 million barrels that is contributing to 18 percent of the total requirement of oil in Pakistan. They said that Balochistan has demanded the federal government to take action against the oil and gas exploration companies that were granted licenses around 10 years ago but they had not started work on exploration activities.
Sources said that Balochistan government has also demanded the federal government to cancel the licenses of those oil and gas exploration companies that were delaying the exploration activities eying the higher profits and margins in the future. Balochistan government believes that oil and gas exploration companies were just playing delaying tactics that resulted in reduction of gas production in Balochistan province. They said that gas production in Balochistan has reduced to 23 percent of total potential which was 53 percent in 1990.
Sindh province was producing 70 percent gas, Punjab 5 percent and North West Frontier Povince (NWFP) at 2 percent. Balochistan has assured to provide security for undertaking the exploration activity by the companies.
These oil and gas fields are located in Qala Abdullah, Qala Saifullah, Bar Khan, Khazdar, Dera Bugti and Kohlu. Sources said that the law and order situation in these areas was under complete control excluding Dera Bugti and Kahlu. They also assured that Frontier Corps would also provide the security in the areas of Dera Bugti and Kahlu to initiate exploration activities.
Some oil and gas explorations companies had got the licenses to initiate the oil and gas exploration activities in Balochistan province on 16 gas fields around over 12 years ago but these companies have not started the exploration activities yet.
Following the protest of Balochistan, federal government has given warning to the oil and gas exploration companies involved in delay of the exploration activities to start the operating activities otherwise their licenses would be cancelled.
http://www.dailytimes.com.pk/default.asp?page=2008%5C10%5C04%5Cstory_4-10-2008_pg5_3