Pakistan May Invite Private Players for Oil, Gas Exploration
Pakistan’s Planning Commission has proposed to the government to auction non-performing oil and gas exploration blocks to the private sector in a bid to boost hydrocarbon production.
The Express Tribune has reported that in a plan submitted to the Ministry of Petroleum and Natural Resources, the Planning Commission pointed to the threat posed by a long-term decline in gas production.
“In case no action is taken, the current production of around 4,000 million cubic feet per day (mmcfd) of gas will fall to around 2,500 mmcfd by 2020 and 400 mmcfd by 2030,” the Commission said, but stressed that Pakistan still had huge gas reserves which needed to be exploited.
The Commission also stated that unconventional gas resources like shale gas have not been exploited due to lack of geological data, absence of policy incentives and shortage of expertise and technologies, the Tribune said.
Pakistan has 29 trillion cubic feet (tcf) of conventional gas reserves, 40 to 50 tcf of tight gas reserves and over 50 tcf of shale gas reserves in the lower Indus basin. Current gas shortage exceeds 2,000 mmcfd and the main reasons cited for lack of exploration and production activity are security concerns and inaccessible areas.