| MoU to be inked with China for oil and gas exploration |
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| Monday,April 20,2009 Posted: 11:47 BJT(0347 GMT) |
| From:Business Recorder Article type:Reproduced |
ISLAMABAD (April 18 2009): Pakistan and China are set to sign memorandum of understanding (MoU) to enter into joint venture for oil and gas exploration. The MoU will be signed by Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain, who left here for China on Friday.
Sources revealed to the Business Recorder that the MoU would enable Pakistan Petroleum Limited (PPL) to enter into joint venture with China state run oil and gas exploration companies for exploration activities in Pakistan as well as in foreign countries.
The government had increased the well-head gas price cap to 100 dollars per barrel crude oil price from 45 dollars per barrel crude oil in 2009 Petroleum and Exploration Policy that would also attract the Chinese companies to explore oil and gas reserves in Pakistan, sources said.
The PPL has already entered into joint venture with Australian Company, MOV, which has already secured Block-29 for oil and gas exploration in Yemen. This step is a milestone by virtue of being the first effort by a local public sector company to extend its exploration activities beyond the border with a minimum financial commitment of 15 million dollars.
The sources said that PPL was also expecting to sign a MoU with the government of Turkmenistan during the forthcoming visit of Dr Asim Hussain to Turkmenistan during the last week of the current month. The PPL is one of the pioneer exploration and production (E&P) companies in Pakistan oil and gas sector that has qualified to participate in the second field development bidding round for substantial E&P opportunities in Iraq that was launched on December 31, 2008.
There were 35 companies, which participated in the first bidding round, and The PPL was among the nine companies that have qualified for the second round to participate for the 19 fields offered by the government of Iraq for development. Few other opportunities that are currently in focus are in the process of technical screening and evaluation includes Libya, Algeria, Morocco, Armenia, Uzbekistan, Senegal and Mauritania.
Dr Asim Hussain has directed the PPL and OGDCL to go into world in pursuit of exploration and production of hydrocarbons, particularly in the countries like Yemen, Libya, Iran, Turkmenistan and Iraq, in a bid to secure much needed energy security and sustainable future for the country.
Copyright Business Recorder, 2009
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Bilateral Visits
2009-04-15 15:57