Pakistan grants oil exploration license to Kuwaiti firm

The Government of Pakistan (GoP) has granted the license for exploration of oil in the Makhad block to a subsidiary of Kuwait Foreign Petroleum Exploration Company.

According to the details, the GoP has executed an Exploration License (EL) as well as a Petroleum Concession Agreement (PCA) signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad Saleem Siddiqui, Director General, Petroleum Concessions, and CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Federal Minister for Petroleum, Omar Ayub Khan.

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.”

Khan further said that the efforts will bear fruit in future years in the form of hydrocarbon reserves.

The Makhad block, is situated in Attock, Mianwali and Chakwal in Punjab as well as Kohat in Khyber Pakhtunkhwa. It is said to be spread over 1,562.92 square kilometers.

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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.