Supply and demand Oil & gas, one of the vibrant sectors, achieved very high level of growth in a few

years. Strategically located at the foot of Central Asia, Pakistan offers great opportunity for them and has an estimated resource potential of 200 trillion cubic feet of natural gas and over40 million barrels of oil. Pakistan's potential as a big business opportunity is highlighted by the fact that over 25 oil companies, of which 21 are multinational, are presently exploiting reserves in the country. The Government of Pakistan has issued over 100 licences for exploration of around 28,000 square kilometres. However, to date Pakistan has only discovered 15% of its total oil reserves and in turn has become major importer of oil and petroleum products. Pakistan's demand for energy is currently about 44.5 million tonnes of oil while production is about 66,000 barrels per day and that of gas is about 2.7 billion cubic feet. Oil demand in Pakistan is expected to grow from 19 million tonnes per year in 2000 to about 27 million tonnes per year in 2010 and in the absence of significant discoveries, most of it will be imported. Imported crude and products place a heavy burden on balance of payments position and

Pakistan Oil and Gas Industry Pakistan oil and gas industry is going through a process of transition as IT is experiencing a new wave of privatization. Government of Pakistan has announced its intention of privatizing 37% of its 75% stake in Qadirpur gas field and also transferring management responsibility to private companies. Aware of rich oil and gas reserves, oil and gas industry of Pakistan is putting in steady efforts to make best utilization of resources and build a strong production base. Petroleum Policy of oil and gas industry in Pakistan is designed with a focus on promoting private sector investment in oil and gas sector. Instance of gas and

condensate discovery by Oil and Gas Development Company Limited (OGDCL) in Exploratory Pakhro Well No. This is an important event for Pakistan oil and gas industry as leaders of this sector get a decent scope of displaying latest technology pertaining to energy industry. In view of the increasing demand and the current decline in production .800 net barrels and natural gas of 73 net million cubic feet.5 billion in 2009 and government aims at formulating policies to reduce import dependence and promote self-reliance by triggering exploitation. POGEE or Pakistan Oil. 01 is a major achievement of this sector. one of world's largest energy companies entered Pakistan oil and gas industry by acquiring all of Oxy's remaining reserve in Pakistan of approximately 68 billion cubic feet of natural gas and 3 million barrels of oil. Oil import of Pakistan is expected to reach $6. Austria's OMV is credited with discovery of gas in Taijal 1 exploration well. Focal point of this conference will be to highlight contemporary developments in Pakistan¶s oil and gas sector Energy (Oil & Gas) Overview Pakistan¶s produces about 60. Iran has also consented to sign gas supply deal with Pakistan oil and gas industry and it will work to construct proposed Iran-Pakistan-India gas pipeline although India has not expressed its decision on this regard.000 barrels of oil per day which only meets approximately one sixth of the country¶s current oil requirement.5 Billion. BP. 2009 will discuss several imperative issues concerning oil and gas industry at Pakistan including increasing demand for products and services in this sector. Petroleum Ministry of Pakistan reported high trade deficit due to major gap between import and export value. Reports of oil and gas industry of Pakistan reveals this country¶s current average daily oil production is about 3. Gas & Energy Exhibition & Conference to be held between 18th and 21st May. Despite such huge potential. OMV has also pointed out medium-term growth potential in Pakistan's reserves. The balance amount is imported at a staggering cost of US$2.

The import of LPG has been liberalized to promote investment in import of LPG. Gas Regulatory Authority and Petroleum Regulatory Board are planned to be established for privatization. The 1997 Petroleum Policy is based on a review of the 1994 Policy and offers major incentives in the upstream and downstream petroleum sector. The privatization of SNGPL and SSGCL is under process. deregulation of downstream petroleum marketing sector and rationalization of prices and LPG allocation. promotion of self-reliance through accelerated exploitation of energy resources and minimum environmental degradation. Policy The Petroleum Policy of 1994 assisted in the development of the upstream sector.this cost is going to increase substantially over the next couple of years. Apart from this. In addition.. could not arouse sufficient interest to attract interest in the downstream sectors. These efforts are directed at achieving cost effectiveness. including a package based on production sharing arrangements for offshore areas. storage and infrastructure on the basis of commercial opportunities and risk. Efforts are being make to exploit the existing energy resources to build a strong indigenous exploration and production base. The demand for natural gas is exceeding supply due to increased usage in the domestic. development of an efficient and transparent management. The Privatisation of the units in the oil and gas sector will not only increase the operational efficiency of these units but also contribute towards new injection of investment. reduction in import dependence. The Policy. Pakistan does not have the necessary infrastructure to cope with the increasing volumes of imported oil and requires substantial investment to support this infrastructure. The Policy focuses on mobilization of greater resources and promotion of private sector investment in the oil and gas sector. creating a qualitatively improved infrastructure in oil and gas industry. This would facilitate those . A separate Holding Company. a number of far-reaching measures have been taken which include attracting private foreign investment. however. off shore areas and the Baluchistan Basin. industrial and power generation sectors. A new package for offshore exploration has been prepared for attracting exploration investment in off-shore areas which has so far remained relatively limited.

oil accounted for 42.68 percent of the total energy supply. Oil is the largest source of energy supply accounting for 42. Next to oil. The country has recoverable gas reserves of 20. OGDC. Statistics The major sources of commercial energy supplies in the country include oil.14%).784 barrels per day of which 22. The country has recoverable oil reserves of 209 million barrels. The average oil production during July-March 1996-97 was 58. it is a feed stock for chemical fertilizers and a major source of energy for thermal power and cement plants. The quantum of energy supplies from these sources during July-March 1996-97 stood at 124. natural gas is a major source of energy accounting for 37.814 trillion cubic feet. However.97 million barrels of oil/petroleum products. coal. Apart from being a cheap source of energy for domestic consumers. A number of fields were discovered in the upper Indus basin in the 1930's and 1940's. coal (5. thermal power and nuclear power. 522.154 barrels per day was produced in the northern region and 36. which are not yet connected with pipeline network. Out of the total commercial energy supplies in the country during July-March 1996-97. 43. According to Oil and Gas Journal (OGJ). liquefied petroleum gas (LPG). OXY. hydel power.630 barrels per day in the southern region.areas of the country. gas. Pakistan had proven oil reserves of 300 million barrels in January 2006. PPL and UTP. an increasing proportion of oil requirement is being met from domestic production. Oil has been produced in what is now the republic of Pakistan from the early 1920's. POL.70 percent of total supply during July-March 1996-97. hydel power (14.605 kWh of electricity and 2. Oil by and large is an important source of energy.806 million cubic feet per day during July-March 1995-96.366 thousand tones of coal.30%) and nuclear power (0.768 Mcf of gas. The average production of gas during July-March.909 million cubic feet per day against 1.70 percent followed by gas (37. Since around 1980 a large number of hydrocarbon discoveries . MGCL. 1996-97 was 1.68%). The oil production in the northern region declined due to natural depletion of oil fields.18%). Main companies currently engaged in exploratory and development activities are LASMO.

. The Ministry grants oil concessions by open tender and by private negotiation. BP is currently the largest oil producer in Pakistan. natural gas remains a major energy asset for Pakistan. Pakistan consumed an average of 362. According to the 2008 BP Statistical Energy Survey. Pakistan produced an average of 58.000 bbl/d of crude oil.38 thousand barrels a day of oil in 2007. but has ambitious plans to increase its current output to 100. Although the level of proved reserves reported by the Pakistan WEC Member Committee has tended to drift downwards in recent years.85 trillion cubic metres.have been made in the central and southern parts of the country. In 2006. although none of them was of any great size.8 billion cubic metres. The country¶s oil sector is regulated by the Ministry of Petroleum and Natural Resources. According to the 2008 BP Statistical Energy Survey.000 bbl/d by 2010. Pakistan had 2007 natural gas production of 30. with the major gasproducing fields being Sui in Balochistan and Mari in Sindh. According to the 2008 BP Statistical Energy Survey. Pakistan¶s government has plans to build a pipeline from Iran¶s massive natural gas reserves to Indian markets across Pakistani territory. In 1999 there were at least 70 oil and condensate fields in production.8 billion cubic metres and consumption of 30. Total output has fluctuated within a range of about 55 000-65 000 b/d since 1989. Pakistan had 2007 proved natural gas reserves of 0.

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