Dr Asim Hussain adviser to the Prime Minister on Petroleum and Natural Resources has said that the government will facilitate and extend full cooperation towards investment in the country's oil and gas sector.This while addressing the inaugural session of the Annual Technical Conference,jointly organized by Pakistan Association of Petroleum Geoscientists and Society of Petroleum Engineers.
He said that the government while re affirming its commitment towards bridging the widening gap between demand and supply and securing a safe energy future,announced the Petroleum Exploration and Production Policy,2012 on August 27th 2012.In addition to the tight gas,low BTU gas,LNG and LPG policies issued earlier this is the second petroleum policy issued by the present government 2 years after the 2009 policy with an aim to attract investment for exploitation of indigenous natural resources and decrease reliance on imports.
Mr Hussain emphasised upon the E&P companies to make the most out of these policies.The primary objective of this comprehensive policy is to optimize the processes and procedures,tax and pricing regime in respect of the petroleum exploration and production sector and providing new stimuli for increasing exploration and production investment by modifying the current contracting terms and incentives.The current market conditions are also to be taken into account.
The major incentive provided in the new policy is on wellhead gas price which has been revised upward to attract investment,both from the existing and prospective investors.The government is also working on the shale gas policy framework,which is in finalization along with the preparation of marginal and stranded gas and low pressure gas policies,as well as guidelines for flared gases to tap the available resources for the country's benefit.Shale gas has been the game changer in North America and the same can be replicated in Pakistan,if plans are executed in an optimum way.
