Iraqi companies urged to form joint ventures with PPL and OGDCL

[LahoreEstate]

RECORDER REPORT
ISLAMABAD (April 14 2009): Pakistan has urged Iraqi oil and gas exploration companies to enter into joint ventures with Pakistan Petroleum Limited (PPL) and the Oil and Gas Development Company Limited (OGDCL) to explore oil and gas reserves in this country. Sources said that advisor to Prime Minister on Petroleum and Natural Resources, Dr Asim Hussain, urged the Iraqi delegation members, who called on him here on Monday, to exploit oil and gas reserves in Pakistan.

He said that the government has devised a new Petroleum (Exploration & Production) Policy, 2009 to attract foreign investment in the country and to enhance local production. He said that the new Petroleum Policy would provide more incentives in terms of pricing mechanism and regulatory framework to E&P companies as this is the right time for Iraqi companies to take part in oil and gas exploration activities in Pakistan.

The members of the delegation said that Iraq has the third largest world oil reserves of 115 billion barrels, out of which, around 75 billion barrels have not been tapped so far. Besides, Iraq has also at least 110 trillion cubic feet of natural gas reserves and the country is a focal point for oil and gas in the region.

As regards the geopolitical situation, establishment and stability of Iraqi government after a period of uncertainty and transition for more than three decades, it is hoped that after the political stability within and outside the country the economic and security scenario would be positive for future foreign investment, particularly in oil and gas sector.

Asim said that due to existing opportunities, transparent and predictable policies the major E&P companies like ENI, BHP BP, Petronas, OMV, etc are becoming more interested in exploration and production activities in Pakistan.

He said that recently PPL has been pre-qualified by Ministry of Oil of Iraq to participate in the field of development bidding round and, according to the list of pre-qualified companies, PPL is at 6th number out of nine pre-qualified companies. In this regard, PPL has said that there are substantial E&P opportunities in Iraq. He requested to facilitate PPL to secure such opportunity on government to government basis.

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