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May 23, 2019

Pakistan, Kuwaiti company sign oil exploration pact

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May 23, 2019

ISLAMABAD: Pakistan has granted a licence to a Kuwaiti petroleum exploration company by executing Petroleum Concession Agreement (PCA) and exploration licence over Makhad Block located in Punjab and Khyber Pakhtunkhwa. 

This block is situated in Attock, Mianwali and Chakwal in Punjab as well as Kohat in KP. The block is spread over 1,562.92 square kilometres. This block has been granted to Kirthar Pakistan BV -- a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec). This agreement has been granted on strategic partner basis (government to government basis).

The government has executed an exploration licence as well as PCA -- signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad Saleem Siddiqui, Director General of Petroleum Concessions, and the CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Minister for Petroleum Omar Ayub Khan.

Kufpec will invest at least $9.8 million in the block, as per a press release of Energy Ministry. Apart from the minimum firm work commitment, the company is also obligated to spend a minimum of $30,000 per year in Makhad block on social welfare schemes.

On the occasion, the petroleum minister said that the execution of PCA and EL will attract foreign investment in the petroleum sector and bridge the demand and supply gap in the energy sector.

Meanwhile, Chief Executive Officer Kuwait Petroleum Shaikh Nawaf Saud Al-Sabah, along with his delegation, called on Prime Minister Imran Khan and evinced keen interest in further expanding business activities in Pakistan.

Omar Ayub Khan, Punjab Minister for Energy Dr Akhtar Malik, Secretary Petroleum Mian Asad Hayauddin and senior officers were also present during the meeting.

Shaikh Nawaf Saud Al-Sabah briefed the prime minister about Kuwait Petroleum’s business ventures in Pakistan since 1980s in the area of exploration. He evinced keen interest in further expanding business activities in the country.

The prime minister welcomed Shaikh Nawaf and his delegation to Pakistan and assured the government’s continued support to the company in their smooth business operations. The prime minister highlighted various steps that the present government has taken for improving ease of doing business and facilitation of foreign investment.

The premier observed that exploration remained a neglected area in past. He added that in order to capitalise on the existing potential of the sector, the government was working on a new petroleum policy offering incentives to foreign exploration and production (E&P) companies and removing impediments in way to undertaking smooth and profitable business ventures.

The prime minister appreciated the company’s contribution towards imparting training to the local manpower in E&P sector.

Dr Akhtar Malik also briefed the meeting about various initiatives being taken by Punjab government in petroleum sector.

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