Pakistan’s upstream oil and gas sector is governed by a complex regulatory framework designed to attract both local and foreign investment. This sector plays a crucial role in the country’s economy, contributing significantly to energy security and economic growth. With a sedimentary basin covering over 880,000 square kilometers, Pakistan offers vast exploration potential, yet large parts remain under-explored. The government, through various policies and regulatory measures, aims to promote sustainable development of these resources while ensuring transparency, environmental protection, and community welfare.
The following comprehensive collection of 300 legal, factual, and technical questions and answers delves into the intricacies of Pakistan’s upstream oil and gas sector. It covers a wide array of topics, including legal frameworks, fiscal incentives, exploration and production processes, regulatory compliance, and technological advancements. This compilation is designed to serve as a valuable resource for stakeholders, including legal professionals, investors, policymakers, and industry practitioners, providing clear and detailed insights into the operational landscape of Pakistan’s oil and gas industry. Through this Q&A, readers will gain a deeper understanding of the opportunities, challenges, and regulatory environment that shape this vital sector.
Q: What legal framework regulates the upstream oil and gas sector in Pakistan? A: The upstream oil and gas sector in Pakistan is regulated by the Regulation of Mines and Oil Fields and Mineral Development (Government Control) Act, 1948, and subsequent amendments, along with various policies and rules specified by the Ministry of Energy (Petroleum Division).
Q: What protections are offered to foreign investments in Pakistan’s oil and gas sector? A: Foreign investments in Pakistan’s oil and gas sector are fully protected under the Foreign Investment Protection Law of 1976, which guarantees full safeguard to foreign investments.
Q: How are onshore and offshore exploration and production rights awarded in Pakistan? A: Onshore and offshore exploration and production rights are awarded through competitive bidding processes or direct negotiation for non-exclusive reconnaissance permits and strategic partner agreements on a government-to-government basis.
Q: What is the royalty rate for petroleum produced and saved at the field gate in Pakistan? A: The royalty rate for petroleum produced and saved at the field gate in Pakistan is 12.5% of the value.
Q: What is the corporate income tax rate for oil and gas companies in Pakistan? A: The corporate income tax rate for oil and gas companies in Pakistan is capped at 40% of profits and gains, with royalty payments allowed as an expense item.
Q: What percentage of Pakistan’s gas demand is met from local sources? A: About 80% of Pakistan’s gas demand is met from local sources.
Q: What are the main components of Pakistan’s energy mix? A: The main components of Pakistan’s energy mix include natural gas, oil, coal, and hydropower.
Q: How many exploratory wells have been drilled in Pakistan till August 2023? A: A total of 1,193 exploratory wells have been drilled in Pakistan till August 2023.
Q: What is the drilling density of wells per 1,000 sq. km in Pakistan compared to the global density? A: The drilling density in Pakistan is 3.1 wells per 1,000 sq. km, compared to the global density of 10 wells per 1,000 sq. km.
Q: What are the recoverable reserves of natural gas and oil in Pakistan? A: The total recoverable reserves of natural gas in Pakistan are estimated at 63.247 trillion cubic feet (TCF), and oil reserves are estimated at 1228.97 million barrels.
Q: What modern technologies are used for oil and gas exploration in Pakistan? A: Modern seismic and drilling technologies, including state-of-the-art seismic techniques and advanced drilling technologies, are used for oil and gas exploration in Pakistan.
Q: What are the key challenges faced in offshore exploration in Pakistan? A: Key challenges in offshore exploration in Pakistan include high pressures in the Miocene section, technical difficulties in drilling at great depths, and complex geological conditions.
Q: What is the duration of the exploration period for oil and gas companies in Pakistan? A: The exploration period consists of an initial term of 5 years, comprising Phase-I of three years and Phase-II of two years, with two subsequent renewals of one year each, totaling a period of 7 years.
Q: What is the Windfall Levy on crude oil and condensate in Pakistan? A: The Windfall Levy on crude oil and condensate is calculated using the formula: WLO = 0.4 x (M-R) x (P-B), where WLO is the Windfall Levy, M is the net production, R is the royalty, P is the market price, and B is the base price.
Q: How are production bonuses structured for different production phases in Pakistan? A: Production bonuses in Pakistan are structured based on production rates, with specific amounts payable for different ranges of barrels of oil equivalent per day (BOE/d), varying by zones.
Q: What zones are defined for onshore oil and gas exploration in Pakistan? A: Onshore areas in Pakistan are divided into four zones: ZONE-I (high risk – high cost), ZONE-I(F) (high risk – high cost), ZONE-II (medium risk – high to medium cost), and ZONE-III (low risk – low cost).
Q: What zones are defined for offshore oil and gas exploration in Pakistan? A: Offshore areas in Pakistan are divided into three zones: Shallow, Deep, and Ultra Deep.
Q: What policy covers the incentives for the onshore and offshore oil and gas sectors in Pakistan? A: The Petroleum Exploration and Production Policy 2012 covers the incentives for the onshore and offshore oil and gas sectors in Pakistan.
Q: What is the minimum duration for an Invitation to Bid for oil and gas exploration blocks in Pakistan? A: An Invitation to Bid for oil and gas exploration blocks in Pakistan remains valid for at least 60 days.
Q: How is the gas market regulated for E&P companies operating in Pakistan? A: E&P companies operating in Pakistan are allowed to construct and operate pipelines for local requirements and exports, regulated by the concerned regulator under an open-access (third party) regime.
Q: What is the size of Pakistan’s sedimentary basin? A: Pakistan’s sedimentary basin covers over 880,000 square kilometers.
Q: How much of Pakistan’s sedimentary basin remains unexplored or under-explored? A: Large parts of Pakistan’s sedimentary basin remain unexplored or under-explored.
Q: What is the potential of unconventional gas resources in Pakistan? A: Pakistan has significant potential for unconventional gas resources, including shale gas and tight gas.
Q: What are the estimated total conventional and unconventional gas reserves in Pakistan? A: The estimated total conventional and unconventional gas reserves in Pakistan are about 160 trillion cubic feet (Tcf).
Q: How many oil and gas discoveries have been made in Pakistan till August 2023? A: A total of 452 oil and gas fields (95 oil and 357 gas and gas/condensate) have been discovered in Pakistan till August 2023.
Q: What is the significance of the Indus offshore basin for Pakistan’s oil and gas exploration? A: The Indus offshore basin is significant as it constitutes the second largest delta/fan system in the world and holds considerable potential for hydrocarbon discoveries using modern technology.
Q: What are the proven and potentially viable plays in the Kirthar Foldbelt? A: Proven and potentially viable plays in the Kirthar Foldbelt range in age from Triassic to recent age.
Q: What are the main types of structural and stratigraphic traps found in Pakistan’s sedimentary basins? A: Pakistan’s sedimentary basins contain a variety of structural and stratigraphic traps that can be developed using the latest seismic and drilling technology.
Q: What modern seismic techniques are employed in Pakistan’s offshore exploration? A: Modern seismic techniques employed in Pakistan’s offshore exploration include advanced 2D and 3D seismic surveys.
Q: What are the key components of the exploration period for oil and gas companies in Pakistan? A: The exploration period consists of an initial term of 5 years, comprising Phase-I of three years and Phase-II of two years, with two subsequent renewals of one year each, for a total period of 7 years.
Q: What are the work unit concepts in Pakistan’s petroleum concession agreements? A: The work unit concept in Pakistan’s petroleum concession agreements allows flexibility in discharge of work obligations based on technical judgment rather than fixed seismic coverage and number of wells.
Q: What is the import duty on equipment not locally manufactured for the oil and gas sector in Pakistan? A: The import duty on equipment not locally manufactured for the oil and gas sector in Pakistan is 5%, as per SRO 678(I)/2004.
Q: What are the social welfare contributions required from E&P companies in Pakistan? A: E&P companies in Pakistan are required to incur minimum expenditures on welfare projects, with specific amounts based on the exploration and production phases and the production levels.
Q: What is the base price for calculating the Windfall Levy on crude oil and condensate in Pakistan? A: The base price for calculating the Windfall Levy on crude oil and condensate is USD 41 per barrel, escalating each calendar year by USD 0.5 per barrel from the date of first commercial production in the contract area.
Q: How are royalties from oil and gas production utilized in Pakistan? A: 10% of the royalties from oil and gas production are utilized in the district where the oil and gas are produced for infrastructure development.
Q: What are the estimated original recoverable gas reserves at the Sui Gas Field in Pakistan? A: The estimated original recoverable gas reserves at the Sui Gas Field in Pakistan are about 13 trillion cubic feet (Tcf).
Q: How many oil and gas wells were drilled in Pakistan during the fiscal year 2022-23? A: A total of 47 wells (15 exploration and 32 development) were drilled in Pakistan during the fiscal year 2022-23.
Q: What is the average daily oil production in Pakistan for the year 2022-23? A: The average daily oil production in Pakistan for the year 2022-23 was 69,513 barrels per day.
Q: What is the average daily gas production in Pakistan for the year 2022-23? A: The average daily gas production in Pakistan for the year 2022-23 was 3,259 million cubic feet per day.
Q: What is the drilling success rate in Pakistan’s oil and gas sector compared to the international rate? A: The drilling success rate in Pakistan’s oil and gas sector is 1:2.7, compared to the international success rate of 1:10.
Q: What is the role of Government Holdings (Pvt) Limited in Pakistan’s offshore exploration? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in offshore licenses with companies like PPL and PEL in the Indus offshore.
Q: What is the significance of the Makran offshore basin for oil and gas exploration in Pakistan? A: The Makran offshore basin holds significant potential for hydrocarbon discoveries and has been under-explored, with only four wells drilled, including one by PPL.
Q: What are the results of the shale gas/oil potential study conducted by the Ministry of P&NR/DGPC with USAID assistance? A: The study indicated a presence of 3,778 Tcf of free gas in-place, 188 Tcf of technically recoverable free gas, and 95 Tcf of risked recoverable free gas. Additionally, 2,323 billion stock tank barrels (BSTB) of shale oil in-place, 58 BSTB of technically recoverable oil, and 14 BSTB of risked recoverable oil.
Q: What are the different geological features explored in the Balochistan Basin? A: The Balochistan Basin is explored for potentially viable plays ranging in age from Paleocene to Oligocene.
Q: How is the transmission tariff determined for E&P companies constructing gas pipelines in Pakistan? A: The transmission tariff is determined by the regulator based on a ‘rate of return on equity’ basis at the rate of 12%, with capital costs amortized over a minimum of 15 years.
Q: How is the Windfall Levy on natural gas sales to third parties calculated in Pakistan? A: The Windfall Levy on natural gas sales to third parties is calculated using the formula: WLG = 0.4 x (PG-BR) x V, where WLG is the Windfall Levy, PG is the third-party sale price, BR is the base price, and V is the volume of gas sold excluding royalty.
Q: What incentives are provided for the development of Low BTU Gas in Pakistan? A: The incentives for the development of Low BTU Gas in Pakistan include favorable pricing mechanisms and regulatory support to encourage the exploitation of these resources.
Q: What are the main provisions of the Petroleum (Exploration & Production) Rules 2001 in Pakistan? A: The Petroleum (Exploration & Production) Rules 2001 in Pakistan cover the regulatory framework for exploration and production activities, including licensing procedures, work obligations, and fiscal terms.
Q: What is the role of the Directorate General of Petroleum Concessions (DGPC) in Pakistan? A: The Directorate General of Petroleum Concessions (DGPC) is responsible for administering and regulating upstream activities in Pakistan’s oil and gas sector, including issuing licenses and overseeing exploration and production operations.
Q: What are the third-party access rules for oil and gas pipelines in Pakistan? A: The third-party access rules in Pakistan allow E&P companies to construct and operate pipelines, with priority access based on a firm utilization plan, and are regulated by the concerned authorities to ensure open access and fair usage.
Q: What is the significance of the Sui Gas Field in Pakistan’s energy sector? A: The Sui Gas Field is significant as it was the largest and most important gas discovery in Pakistan, with original recoverable reserves of about 13 Tcf, and has played a crucial role in meeting the country’s energy needs.
Q: How many zones are there in Pakistan’s onshore and offshore areas for oil and gas exploration? A: Pakistan’s onshore areas are divided into four zones (ZONE-I, ZONE-I(F), ZONE-II, ZONE-III), and offshore areas are divided into three zones (Shallow, Deep, Ultra Deep).
Q: What percentage of Pakistan’s oil demand is met from local sources? A: About 15% of Pakistan’s oil demand is met from local sources.
Q: What is the estimated total in-place shale gas resource in Pakistan according to the USAID study? A: The estimated total in-place shale gas resource in Pakistan is 3,778 Tcf, with 188 Tcf of technically recoverable free gas.
Q: What are the potential unconventional resources in Pakistan’s sedimentary basins? A: Potential unconventional resources in Pakistan’s sedimentary basins include shale gas, shale oil, and tight gas.
Q: What seismic techniques are employed to explore the Indus Offshore Basin in Pakistan? A: Advanced 2D and 3D seismic surveys are employed to explore the Indus Offshore Basin in Pakistan, aiming to identify potential hydrocarbon reservoirs.
Q: What are the main challenges faced in drilling offshore wells in Pakistan? A: Main challenges include high pressures in the Miocene section, deepwater drilling complexities, and the need for advanced drilling technologies to reach target objectives.
Q: How does the Windfall Levy on crude oil escalate each year in Pakistan? A: The base price for calculating the Windfall Levy on crude oil escalates by USD 0.5 per barrel each calendar year from the date of first commercial production in the contract area.
Q: What is the significance of the Kirthar Foldbelt for Pakistan’s oil and gas exploration? A: The Kirthar Foldbelt is significant due to its north-south trending tectonic feature, which includes several proven and potentially viable plays ranging in age from Triassic to recent, making it a key area for exploration.
Q: How is the production bonus structured for E&P companies in Pakistan during the commercial production phase? A: The production bonus is structured based on production rates, with specific amounts payable for different ranges of barrels of oil equivalent per day (BOE/d), varying by zones.
Q: What are the requirements for obtaining a Petroleum Exploration License in Pakistan? A: Requirements include submitting a bid in response to an Invitation to Bid, providing requisite information, and complying with the terms and conditions outlined by the DGPC.
Q: What are the fiscal incentives for E&P companies under the Petroleum Exploration and Production Policy 2012? A: Fiscal incentives include favorable royalty rates, capped corporate income tax, and exemptions on import duties for equipment not locally manufactured.
Q: How does the Government of Pakistan ensure transparency in the bidding process for oil and gas blocks? A: Transparency is ensured by issuing Invitations to Bid in national newspapers and on the MPNR website, maintaining a minimum validity period of 60 days, and following a competitive bidding process.
Q: What legal instruments govern the safety in drilling and development activities in Pakistan’s oil and gas sector? A: The Oil and Gas (Safety in Drilling & Development) Regulations 1974 govern safety in drilling and development activities in Pakistan’s oil and gas sector.
Q: What is the role of the Ministry of Energy (Petroleum Division) in Pakistan’s oil and gas sector? A: The Ministry of Energy (Petroleum Division) oversees policy formulation, regulation, and promotion of exploration and production activities in Pakistan’s oil and gas sector.
Q: What is the geographical extent of Pakistan’s offshore sedimentary basins? A: Pakistan’s offshore sedimentary basins extend along the coast and include the Indus and Makran basins, covering significant areas with potential for hydrocarbon discoveries.
Q: How many oil and gas fields were discovered in the Middle Indus Basin by 1989? A: By 1989, the Qadirpur gas field (4.5 Tcf) was discovered in the Middle Indus Basin.
Q: What is the average success rate for oil and gas drilling in Pakistan compared to the international rate? A: The success rate in Pakistan is 1:2.7, which is favorable compared to the international rate of 1:10.
Q: How many oil and gas discoveries have been made in Pakistan’s Lower Indus Basin? A: Multiple discoveries have been made, including significant finds by Union Texas Pakistan, PPL, and other companies.
Q: What are the major oil and gas basins in Pakistan? A: Major basins include the Lower Indus, Middle Indus, Upper Indus, Kohat-Potwar, Punjab Platform, Balochistan Basin, Kirthar Foldbelt, and Sulaiman Foldbelt.
Q: What are the key geological features of the Makran Offshore Basin? A: The Makran Offshore Basin features potentially viable plays ranging in age from Middle – Upper Miocene to Pleistocene, and is located along the Makran coast west of Murray Ridge.
Q: How are exploration and production activities monitored in Pakistan? A: Activities are monitored through the Directorate General of Petroleum Concessions (DGPC), which oversees compliance with regulatory requirements and work obligations.
Q: What modern technologies have facilitated recent oil and gas discoveries in Pakistan? A: Technologies such as 3D seismic surveys, horizontal drilling, and hydraulic fracturing have facilitated recent discoveries.
Q: What is the importance of the Kohat Basin in Pakistan’s oil and gas sector? A: The Kohat Basin is important due to its series of oil and gas discoveries, starting with the first commercial discovery by OGDCL in 1999.
Q: How does Pakistan’s government promote foreign investment in the oil and gas sector? A: The government promotes foreign investment through favorable policies, regulatory support, fiscal incentives, and guarantees under the Foreign Investment Protection Law.
Q: What is the significance of the Pakistan Onshore Petroleum (Exploration & Production) Rules 2013? A: These rules provide a regulatory framework for onshore exploration and production activities, ensuring compliance with national standards and facilitating investment.
Q: How are the social welfare contributions utilized by E&P companies in Pakistan? A: Social welfare contributions are used for local development projects in the areas where oil and gas operations are conducted, improving infrastructure and community welfare.
Q: What legal framework governs offshore petroleum exploration and production in Pakistan? A: The Pakistan Offshore Petroleum (Exploration & Production) Rules 2003 and subsequent amendments govern offshore exploration and production.
Q: What measures are in place to ensure environmental protection during oil and gas operations in Pakistan? A: Environmental protection measures include compliance with national environmental regulations, conducting environmental impact assessments, and implementing best practices for minimizing ecological impact.
Q: What is the role of the Oil and Gas Regulatory Authority (OGRA) in Pakistan? A: OGRA regulates the midstream and downstream oil and gas sectors, ensuring fair practices, safety standards, and compliance with regulatory requirements.
Q: How many blocks are available for upcoming bidding rounds in Pakistan’s oil and gas sector? A: The specific number of blocks available for upcoming bidding rounds can vary; detailed information is typically provided in the Invitation to Bid issued by DGPC.
Q: What is the estimated balance recoverable oil reserves in Pakistan as of the latest data? A: The estimated balance recoverable oil reserves in Pakistan are approximately 192.91 million barrels.
Q: How many kilometers of gas transmission and distribution network exist in Pakistan? A: Pakistan has a collective transmission and distribution network of about 165,800 kilometers.
Q: What are the estimated cumulative production figures for natural gas in Pakistan? A: The cumulative production figures for natural gas in Pakistan are approximately 44,908.608 billion cubic feet (BCF).
Q: What are the main sources of Pakistan’s energy supply? A: The main sources of Pakistan’s energy supply include natural gas, oil, coal, hydroelectricity, nuclear power, and renewable energy.
Q: What are the main features of the work unit concept in petroleum concession agreements in Pakistan? A: The work unit concept provides flexibility by allowing petroleum right holders to finalize work programs based on technical judgment rather than fixed seismic coverage and the number of wells.
Q: What is the initial term of the exploration period for oil and gas companies in Pakistan? A: The initial term of the exploration period is 5 years, comprising Phase-I of three years and Phase-II of two years.
Q: How is the base price for natural gas sales to third parties determined in Pakistan? A: The base price for natural gas sales to third parties is the applicable Zone price for sale to the Government of Pakistan (GOP), with windfall levy applied if the third-party sale price exceeds the base price.
Q: What advanced technologies are used for shale gas exploration in Pakistan? A: Advanced technologies for shale gas exploration include horizontal drilling, hydraulic fracturing, and detailed geological assessments.
Q: What are the geological features of the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene.
Q: What are the key elements of the Petroleum Exploration and Production Policy 2012 in Pakistan? A: Key elements include incentives for exploration, favorable fiscal terms, regulatory support, and provisions for open-access pipeline construction.
Q: How are the proceeds from the Windfall Levy on crude oil and condensate distributed in Pakistan? A: The proceeds from the Windfall Levy are equally divided between the Federal Government and the concerned Provincial Government.
Q: What is the role of local E&P companies in joint ventures with foreign companies in Pakistan? A: Local E&P companies, including GHPL, have mandatory participation with working interest in joint ventures with foreign companies, as specified by the Petroleum Policy.
Q: What import duties apply to locally manufactured equipment for the oil and gas sector in Pakistan? A: Import duties for locally manufactured equipment are generally 10%, except for wellhead equipment, which has an import duty of 15%.
Q: What legal frameworks govern the taxation of income from oil and gas operations in Pakistan? A: The taxation of income from oil and gas operations is governed by the Income Tax Ordinance 2001, specifically the Fifth Schedule.
Q: What is the primary legal act regulating mines and oil fields in Pakistan? A: The primary legal act is the Regulation of Mines and Oil Fields and Mineral Development (Government Control) Act, 1948.
Q: How many concession agreements were signed in Pakistan’s oil and gas sector during the last nine fiscal years? A: A total of 69 concession agreements were signed during the last nine fiscal years.
Q: What is the total area covered by the concession agreements signed in Pakistan’s oil and gas sector recently? A: The concession agreements cover an area of almost 137,229 square kilometers.
Q: What was the financial commitment attracted during the exploration phase of these concession agreements? A: The financial commitment attracted during the exploration phase was at least USD 491.67 million.
Q: What is the significance of the Indus Fan in Pakistan’s offshore exploration? A: The Indus Fan is significant as it is the second largest delta/fan system in the world, providing considerable potential for hydrocarbon discoveries.
Q: What technologies are used for seismic surveys in Pakistan’s offshore oil and gas exploration? A: Technologies used include advanced 2D and 3D seismic surveys, along with other geophysical techniques.
Q: What is the importance of the Makran Offshore Basin in Pakistan’s oil and gas sector? A: The Makran Offshore Basin is important due to its potential for hydrocarbon discoveries and under-explored nature, making it a promising area for future exploration.
Q: How is the quality differential for crude oil determined in Pakistan? A: The quality differential for crude oil is determined based on the C&F price of a comparable crude oil or a basket of Arabian/Persian Gulf crude oils, adjusted for quality differences.
Q: What is the role of OGRA in regulating the oil and gas sector in Pakistan? A: OGRA regulates the midstream and downstream sectors, ensuring compliance with safety standards, fair practices, and regulatory requirements.
Q: How does the government ensure competitive bidding for oil and gas exploration blocks in Pakistan? A: The government ensures competitive bidding by issuing Invitations to Bid, maintaining transparency, and following a structured evaluation process for bids received.
Q: What are the training contributions required from E&P companies in Pakistan during the exploration phase? A: E&P companies are required to contribute USD 25,000 per year during the exploration phase for training purposes.
Q: What are the contributions required from E&P companies during the development and production phase in Pakistan? A: E&P companies are required to contribute USD 50,000 per year during the development and production phase for training purposes.
Q: What are the mandatory participation percentages for local E&P companies in different zones in Pakistan? A: Local E&P companies, including GHPL, have mandatory participation percentages of 15% in ZONE-I/I(F), 20% in ZONE-II, and 25% in ZONE-III.
Q: How is the market price of crude oil and condensate determined for the Windfall Levy in Pakistan? A: The market price is determined based on the C&F price of comparable crude oil or a basket of Arabian/Persian Gulf crude oils, plus or minus quality differentials.
Q: What legal provisions exist for the construction of pipelines by E&P companies in Pakistan? A: E&P companies are allowed to construct and operate pipelines for local requirements and exports, regulated by concerned authorities, and are entitled to a transmission tariff based on a rate of return on equity.
Q: What is the cumulative production of oil in Pakistan as of the latest data? A: The cumulative production of oil in Pakistan is approximately 1,036.049 million barrels.
Q: What are the estimated original recoverable gas reserves in Pakistan? A: The estimated original recoverable gas reserves in Pakistan are approximately 63.247 trillion cubic feet (TCF).
Q: How many oil and gas fields were discovered by OGDCL in the Kohat Basin by 1999? A: By 1999, OGDCL made the first oil and gas discovery in the Kohat Basin.
Q: What is the role of the Ministry of Energy (Petroleum Division) in the regulation of Pakistan’s oil and gas sector? A: The Ministry of Energy (Petroleum Division) oversees policy formulation, regulatory compliance, and promotion of exploration and production activities in the oil and gas sector.
Q: What is the significance of the Khaur oil discovery in Pakistan’s oil and gas history? A: The Khaur oil discovery in 1915 was the first commercial oil discovery in Pakistan, marking the beginning of significant oil exploration in the country.
Q: What are the geological features of the Sulaiman Foldbelt in Pakistan? A: The Sulaiman Foldbelt features proven and potentially viable plays ranging in age from Middle Jurassic to Miocene, making it one of the most prospective regions for oil and gas exploration.
Q: How is the gas supply volume confirmed for connecting pipelines in Pakistan? A: The gas supply volume is confirmed by the producer, providing requisite gas supply volumes, pressures, reserves, and other technical parameters on a standard supply term contract basis.
Q: What is the importance of modern technology in exploring Pakistan’s sedimentary basins? A: Modern technology, such as advanced seismic surveys and drilling techniques, is crucial for accurately identifying and exploiting hydrocarbon reserves in Pakistan’s sedimentary basins.
Q: What are the potential petroleum play fairways identified in Pakistan Basin Study? A: The Pakistan Basin Study identified consistent countrywide petroleum play fairways, including reservoirs from the Infracambrian to Pleistocene age.
Q: How does Pakistan’s government ensure investor-friendly policies for the oil and gas sector? A: The government ensures investor-friendly policies by offering fiscal incentives, regulatory support, and maintaining transparent bidding processes to attract foreign investment.
Q: What are the main provisions of the Pakistan Onshore Petroleum (Exploration & Production) Rules 2009? A: The rules provide a regulatory framework for onshore exploration and production, covering licensing procedures, work obligations, and fiscal terms.
Q: What is the impact of the Foreign Investment Protection Law on Pakistan’s oil and gas sector? A: The Foreign Investment Protection Law provides full safeguards to foreign investments, enhancing investor confidence and promoting foreign investment in the oil and gas sector.
Q: How are concession agreements structured for oil and gas exploration in Pakistan? A: Concession agreements are structured based on competitive bidding or direct negotiation, with terms and conditions outlined by the DGPC and aligned with the Petroleum Policy.
Q: What are the incentives for shale gas exploration in Pakistan? A: Incentives include favorable fiscal terms, regulatory support, and technical assistance, such as the study conducted with USAID to identify shale gas potential.
Q: How are marginal/stranded gas fields incentivized for development in Pakistan? A: Marginal/stranded gas fields are incentivized through specific gas pricing policies and criteria, encouraging the development and exploitation of these resources.
Q: What is the success ratio for oil and gas wells drilled in Pakistan? A: The success ratio for oil and gas wells drilled in Pakistan is approximately 1:2.7.
Q: How many exploratory and development wells were drilled in Pakistan during 2022-23? A: During 2022-23, a total of 47 wells (15 exploratory and 32 development) were drilled.
Q: What are the main elements of the work programs under petroleum concession agreements in Pakistan? A: Work programs under petroleum concession agreements include seismic surveys, drilling of exploration wells, and development activities based on technical assessments.
Q: How is the condensate pricing determined for producers in Pakistan? A: Condensate pricing is determined based on the FOB price of internationally quoted comparable condensate delivered at the nearest refinery gate, adjusted for quality differentials.
Q: What is the estimated balance recoverable gas reserves in Pakistan? A: The estimated balance recoverable gas reserves in Pakistan are approximately 18.339 trillion cubic feet (TCF).
Q: What are the key considerations for E&P companies constructing gas pipelines in Pakistan? A: Key considerations include compliance with regulatory requirements, securing requisite gas supply volumes, and confirming technical parameters for connecting pipelines to the transmission system.
Q: How has modern technology impacted oil and gas exploration in Pakistan? A: Modern technology has led to several significant discoveries, increased exploration potential, and enhanced the efficiency and accuracy of exploration activities in Pakistan.
Q: What are the geological features of the Lower Indus Basin in Pakistan? A: The Lower Indus Basin features proven and potentially viable plays ranging in age from Pre-Cambrian to recent, making it a key area for oil and gas exploration.
Q: What is the significance of the Indus Offshore Basin for Pakistan’s energy sector? A: The Indus Offshore Basin holds significant potential for hydrocarbon discoveries, with large unexplored areas offering opportunities for major oil and gas finds using advanced seismic and drilling technologies.
Q: How are production bonuses structured for E&P companies in different zones in Pakistan? A: Production bonuses are structured based on production levels, with specific amounts payable for different ranges of barrels of oil equivalent per day (BOE/d), varying by zones.
Q: What legal provisions exist for third-party access to oil and gas pipelines in Pakistan? A: Third-party access is regulated to ensure fair usage, with E&P companies allowed to construct and operate pipelines under an open-access regime and entitled to a transmission tariff based on a rate of return on equity.
Q: How does the government ensure the enforcement of safety regulations in drilling and development activities? A: Safety regulations are enforced through the Oil and Gas (Safety in Drilling & Development) Regulations 1974, which mandate compliance with national safety standards and best practices.
Q: What fiscal incentives are provided for the development of Tight Gas in Pakistan? A: Fiscal incentives for Tight Gas development include favorable pricing mechanisms, regulatory support, and specific policies outlined in the Tight Gas (Exploration & Production) Policy 2011.
Q: What are the main elements of the Pakistan Offshore Petroleum (Exploration & Production) Rules 2023? A: The rules provide a regulatory framework for offshore exploration and production, covering licensing procedures, work obligations, fiscal terms, and environmental protection measures.
Q: How does the Petroleum Policy 2012 support the exploration and development of unconventional resources in Pakistan? A: The Petroleum Policy 2012 supports exploration and development of unconventional resources by providing fiscal incentives, regulatory support, and encouraging the use of advanced technologies.
Q: How many production sharing agreements does Government Holdings (Pvt) Limited hold in offshore licenses? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in 2 offshore licenses with PPL and PEL in the Indus offshore.
Q: What is the significance of the Khaskeli oil discovery in Pakistan’s oil and gas history? A: The Khaskeli oil discovery in the Lower Indus Basin in 1981 was significant as it marked the second major milestone after Sui in the search for hydrocarbons in Pakistan, leading to a boom in exploration activity.
Q: What is the estimated total in-place shale oil resource in Pakistan according to the USAID study? A: The estimated total in-place shale oil resource in Pakistan is 2,323 billion stock tank barrels (BSTB).
Q: What is the average daily gas production in Pakistan for the year 2022-23? A: The average daily gas production in Pakistan for the year 2022-23 was 3,259 million cubic feet per day.
Q: What are the main geological features explored in the Kohat-Potwar Basin? A: The Kohat-Potwar Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Miocene, making it a significant area for oil and gas exploration.
Q: What are the key features of the Marginal/Stranded Gas Fields policy in Pakistan? A: The policy provides specific pricing criteria and guidelines to encourage the development and exploitation of marginal/stranded gas fields, making these resources economically viable.
Q: How is the exploration potential in Pakistan’s sedimentary basins assessed? A: Exploration potential is assessed through detailed geological studies, seismic surveys, and drilling activities, supported by modern technology and comprehensive basin studies.
Q: What are the proven and potentially viable plays in the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene, offering significant exploration opportunities.
Q: What is the role of the Directorate General of Oil (DG Oil) in Pakistan’s oil and gas sector? A: The Directorate General of Oil (DG Oil) provides support to the government in formulating policies for the midstream and downstream oil sectors, ensuring regulatory compliance and promoting sectoral development.
Q: How does the government facilitate the import of equipment for the oil and gas sector in Pakistan? A: The government facilitates the import of equipment by providing exemptions or reduced import duties on equipment not locally manufactured, as specified in relevant SROs and policies.
Q: How are production bonuses calculated for E&P companies in Pakistan? A: Production bonuses are calculated based on production levels, with specific amounts payable for different ranges of barrels of oil equivalent per day (BOE/d). The amounts vary by zones, with higher bonuses for higher production rates.
Q: What are the key elements of the Pakistan Offshore Petroleum (Exploration & Production) Rules 2023? A: Key elements include licensing procedures, work obligations, fiscal terms, environmental protection measures, and guidelines for safe and efficient offshore exploration and production activities.
Q: What fiscal incentives are provided under the Tight Gas (Exploration & Production) Policy 2011 in Pakistan? A: Fiscal incentives include favorable pricing mechanisms, reduced royalties, and tax exemptions to encourage the exploration and production of tight gas resources.
Q: How does the government of Pakistan promote transparency in the oil and gas sector? A: The government promotes transparency through competitive bidding processes, public disclosure of bidding results, regulatory oversight by DGPC, and compliance with national and international standards.
Q: What legal frameworks govern the taxation of income from oil and gas operations in Pakistan? A: The taxation of income from oil and gas operations is governed by the Income Tax Ordinance 2001, specifically the Fifth Schedule, which outlines the tax treatment for petroleum operations.
Q: How many oil and gas fields were discovered by Union Texas Pakistan in the Lower Indus Basin? A: Union Texas Pakistan discovered multiple oil and gas fields in the Lower Indus Basin, including the significant Khaskeli oil field in 1981.
Q: What is the estimated balance recoverable oil reserves in Pakistan as of the latest data? A: The estimated balance recoverable oil reserves in Pakistan are approximately 192.91 million barrels.
Q: What is the total length of the gas transmission and distribution network in Pakistan? A: The total length of the gas transmission and distribution network in Pakistan is about 165,800 kilometers.
Q: What are the estimated original recoverable gas reserves at the Sui Gas Field in Pakistan? A: The estimated original recoverable gas reserves at the Sui Gas Field are about 13 trillion cubic feet (Tcf).
Q: What percentage of Pakistan’s energy demand is met by natural gas? A: Natural gas meets over 80% of Pakistan’s energy demand.
Q: What are the geological features of the Lower Indus Basin in Pakistan? A: The Lower Indus Basin features proven and potentially viable plays ranging in age from Pre-Cambrian to recent, making it a key area for oil and gas exploration.
Q: How are the exploration and production activities monitored in Pakistan? A: Exploration and production activities are monitored by the Directorate General of Petroleum Concessions (DGPC), which oversees compliance with regulatory requirements, work obligations, and safety standards.
Q: What advanced technologies are used for shale gas exploration in Pakistan? A: Advanced technologies include horizontal drilling, hydraulic fracturing, and detailed geological assessments to accurately identify and exploit shale gas resources.
Q: What is the role of Government Holdings (Pvt) Limited in Pakistan’s offshore exploration? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in offshore licenses, partnering with companies like PPL and PEL to explore and develop offshore resources.
Q: What are the key geological features of the Makran Offshore Basin? A: The Makran Offshore Basin features potentially viable plays ranging in age from Middle – Upper Miocene to Pleistocene, located along the Makran coast and offering significant potential for hydrocarbon discoveries.
Q: What legal provisions exist for environmental protection during oil and gas operations in Pakistan? A: Environmental protection measures include compliance with national environmental regulations, conducting environmental impact assessments, and implementing best practices to minimize ecological impact.
Q: What incentives are provided for the development of Low BTU Gas in Pakistan? A: Incentives include favorable pricing mechanisms, regulatory support, and policies to encourage the exploitation of Low BTU Gas resources.
Q: What is the significance of the Petroleum Exploration and Production Policy 2012 for Pakistan’s oil and gas sector? A: The Petroleum Exploration and Production Policy 2012 provides a comprehensive framework for exploration and production activities, offering fiscal incentives, regulatory support, and guidelines for safe and efficient operations.
Q: How are social welfare contributions utilized by E&P companies in Pakistan? A: Social welfare contributions are used for local development projects, including infrastructure improvements, education, healthcare, and community welfare initiatives in areas where oil and gas operations are conducted.
Q: What are the third-party access rules for oil and gas pipelines in Pakistan? A: The third-party access rules allow E&P companies to construct and operate pipelines under an open-access regime, ensuring fair usage and compliance with regulatory requirements.
Q: How many zones are defined for onshore oil and gas exploration in Pakistan? A: Onshore areas in Pakistan are divided into four zones: ZONE-I, ZONE-I(F), ZONE-II, and ZONE-III.
Q: What is the estimated total in-place shale gas resource in Pakistan according to the USAID study? A: The estimated total in-place shale gas resource in Pakistan is 3,778 Tcf, with 188 Tcf of technically recoverable free gas.
Q: How many oil and gas discoveries have been made in Pakistan’s Middle Indus Basin? A: Multiple discoveries have been made in the Middle Indus Basin, including significant finds by companies like Eni, OMV, and OGDCL.
Q: What is the success rate for oil and gas drilling in Pakistan compared to the international rate? A: The success rate in Pakistan is 1:2.7, compared to the international rate of 1:10.
Q: What are the proven and potentially viable plays in the Kirthar Foldbelt? A: Proven and potentially viable plays in the Kirthar Foldbelt range in age from Triassic to recent, offering significant exploration opportunities.
Q: What are the main challenges faced in drilling offshore wells in Pakistan? A: Main challenges include high pressures in the Miocene section, deepwater drilling complexities, and the need for advanced drilling technologies to reach target objectives.
Q: How is the exploration potential in Pakistan’s sedimentary basins assessed? A: Exploration potential is assessed through detailed geological studies, seismic surveys, and drilling activities, supported by modern technology and comprehensive basin studies.
Q: What are the key geological features of the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene, making it a significant area for oil and gas exploration.
Q: What is the significance of the Indus Offshore Basin for Pakistan’s energy sector? A: The Indus Offshore Basin holds significant potential for hydrocarbon discoveries, with large unexplored areas offering opportunities for major oil and gas finds using advanced seismic and drilling technologies.
Q: What modern technologies have facilitated recent oil and gas discoveries in Pakistan? A: Technologies such as 3D seismic surveys, horizontal drilling, and hydraulic fracturing have facilitated recent discoveries and increased exploration potential in Pakistan.
Q: What are the main provisions of the Pakistan Onshore Petroleum (Exploration & Production) Rules 2013? A: The rules provide a regulatory framework for onshore exploration and production activities, ensuring compliance with national standards and facilitating investment.
Q: How does the government of Pakistan ensure competitive bidding for oil and gas exploration blocks? A: The government ensures competitive bidding by issuing Invitations to Bid, maintaining transparency, and following a structured evaluation process for bids received.
Q: What is the role of local E&P companies in joint ventures with foreign companies in Pakistan? A: Local E&P companies, including GHPL, have mandatory participation with working interest in joint ventures with foreign companies, as specified by the Petroleum Policy.
Q: What legal frameworks govern the safety in drilling and development activities in Pakistan’s oil and gas sector? A: The Oil and Gas (Safety in Drilling & Development) Regulations 1974 govern safety in drilling and development activities, ensuring compliance with national safety standards.
Q: How does the government of Pakistan promote foreign investment in the oil and gas sector? A: The government promotes foreign investment through favorable policies, regulatory support, fiscal incentives, and guarantees under the Foreign Investment Protection Law.
Q: What are the estimated cumulative production figures for natural gas in Pakistan? A: The cumulative production figures for natural gas in Pakistan are approximately 44,908.608 billion cubic feet (BCF).
Q: How many oil and gas discoveries have been made in Pakistan’s Lower Indus Basin? A: Multiple discoveries have been made, including significant finds by Union Texas Pakistan, PPL, and other companies.
Q: What is the estimated total in-place shale oil resource in Pakistan according to the USAID study? A: The estimated total in-place shale oil resource in Pakistan is 2,323 billion stock tank barrels (BSTB).
Q: What is the geographical extent of Pakistan’s offshore sedimentary basins? A: Pakistan’s offshore sedimentary basins extend along the coast and include the Indus and Makran basins, covering significant areas with potential for hydrocarbon discoveries.
Q: How many production sharing agreements does Government Holdings (Pvt) Limited hold in offshore licenses? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in 2 offshore licenses with PPL and PEL in the Indus offshore.
Q: What are the geological features of the Sulaiman Foldbelt in Pakistan? A: The Sulaiman Foldbelt features proven and potentially viable plays ranging in age from Middle Jurassic to Miocene, making it one of the most prospective regions for oil and gas exploration.
Q: How are exploration and production activities monitored in Pakistan? A: Activities are monitored through the Directorate General of Petroleum Concessions (DGPC), which oversees compliance with regulatory requirements and work obligations.
Q: What modern technologies are used for seismic surveys in Pakistan’s offshore oil and gas exploration? A: Technologies used include advanced 2D and 3D seismic surveys, along with other geophysical techniques to identify potential hydrocarbon reservoirs.
Q: What is the importance of the Kohat Basin in Pakistan’s oil and gas sector? A: The Kohat Basin is important due to its series of oil and gas discoveries, starting with the first commercial discovery by OGDCL in 1999, making it a key area for exploration.
Q: What are the main geological features explored in the Balochistan Basin? A: The Balochistan Basin is explored for potentially viable plays ranging in age from Paleocene to Oligocene, offering significant opportunities for hydrocarbon exploration.
Q: How are the social welfare contributions required from E&P companies in Pakistan structured? A: Contributions are structured based on the exploration and production phases and production levels, with specific amounts allocated for local development projects in the areas where operations are conducted.
Q: What is the role of the Directorate General of Petroleum Concessions (DGPC) in Pakistan? A: The DGPC is responsible for administering and regulating upstream activities, including issuing licenses, overseeing exploration and production operations, and ensuring compliance with regulatory requirements.
Q: What are the training contributions required from E&P companies during the exploration phase in Pakistan? A: E&P companies are required to contribute USD 25,000 per year during the exploration phase for training purposes, as per the Petroleum Policy.
Q: What legal framework governs offshore petroleum exploration and production in Pakistan? A: The Pakistan Offshore Petroleum (Exploration & Production) Rules 2003 and subsequent amendments govern offshore exploration and production activities.
Q: How is the corporate income tax rate for oil and gas companies structured in Pakistan? A: The corporate income tax rate for oil and gas companies is capped at 40% of profits and gains, with royalty payments allowed as an expense item.
Q: What is the cumulative production of oil in Pakistan as of the latest data? A: The cumulative production of oil in Pakistan is approximately 1,036.049 million barrels.
Q: What are the estimated balance recoverable gas reserves in Pakistan? A: The estimated balance recoverable gas reserves in Pakistan are approximately 18.339 trillion cubic feet (TCF).
Q: How many exploratory and development wells were drilled in Pakistan during 2022-23? A: A total of 47 wells (15 exploratory and 32 development) were drilled during 2022-23.
Q: What is the average daily oil production in Pakistan for the year 2022-23? A: The average daily oil production in Pakistan for the year 2022-23 was 69,513 barrels per day.
Q: What are the main sources of Pakistan’s energy supply? A: The main sources include natural gas, oil, coal, hydroelectricity, nuclear power, and renewable energy.
Q: What are the key geological features of the Kohat-Potwar Basin? A: The Kohat-Potwar Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Miocene, making it a significant area for oil and gas exploration.
Q: What technologies are used for seismic surveys in Pakistan’s onshore oil and gas exploration? A: Technologies include advanced 2D and 3D seismic surveys, as well as other geophysical techniques to accurately identify potential hydrocarbon reservoirs.
Q: What is the role of OGRA in regulating the oil and gas sector in Pakistan? A: OGRA regulates the midstream and downstream oil and gas sectors, ensuring compliance with safety standards, fair practices, and regulatory requirements.
Q: How does the government ensure competitive bidding for oil and gas exploration blocks in Pakistan? A: The government ensures competitive bidding by issuing Invitations to Bid, maintaining transparency, and following a structured evaluation process for bids received.
Q: What is the significance of the Indus Fan in Pakistan’s offshore exploration? A: The Indus Fan is significant as it is the second largest delta/fan system in the world, providing considerable potential for hydrocarbon discoveries.
Q: What are the main elements of the work unit concept in petroleum concession agreements in Pakistan? A: The work unit concept provides flexibility by allowing petroleum right holders to finalize work programs based on technical judgment rather than fixed seismic coverage and the number of wells.
Q: How does the government of Pakistan ensure transparency in the bidding process for oil and gas blocks? A: Transparency is ensured by issuing Invitations to Bid in national newspapers and on the MPNR website, maintaining a minimum validity period of 60 days, and following a competitive bidding process.
Q: What are the incentives for shale gas exploration in Pakistan? A: Incentives include favorable fiscal terms, regulatory support, and technical assistance, such as the study conducted with USAID to identify shale gas potential.
Q: How are marginal/stranded gas fields incentivized for development in Pakistan? A: Marginal/stranded gas fields are incentivized through specific gas pricing policies and criteria, encouraging the development and exploitation of these resources.
Q: How is the gas market regulated for E&P companies operating in Pakistan? A: E&P companies are allowed to construct and operate pipelines for local requirements and exports, regulated by the concerned regulator under an open-access (third party) regime.
Q: What are the estimated total recoverable gas reserves in Pakistan? A: The total recoverable gas reserves in Pakistan are estimated at 63.247 trillion cubic feet (TCF).
Q: What is the drilling density of wells per 1,000 sq. km in Pakistan compared to the global density? A: The drilling density in Pakistan is 3.1 wells per 1,000 sq. km, compared to the global density of 10 wells per 1,000 sq. km.
Q: How many oil and gas discoveries have been made in Pakistan till August 2023? A: A total of 452 oil and gas fields (95 oil and 357 gas and gas/condensate) have been discovered in Pakistan till August 2023.
Q: What is the average daily gas production in Pakistan for the year 2022-23? A: The average daily gas production in Pakistan for the year 2022-23 was 3,259 million cubic feet per day.
Q: What are the main components of Pakistan’s energy mix? A: The main components include natural gas, oil, coal, and hydropower.
Q: What are the main features of the work unit concept in petroleum concession agreements in Pakistan? A: The work unit concept allows flexibility in discharge of work obligations based on technical judgment rather than fixed seismic coverage and number of wells.
Q: What seismic techniques are employed to explore the Indus Offshore Basin in Pakistan? A: Advanced 2D and 3D seismic surveys are employed to explore the Indus Offshore Basin in Pakistan, aiming to identify potential hydrocarbon reservoirs.
Q: How is the base price for natural gas sales to third parties determined in Pakistan? A: The base price for natural gas sales to third parties is the applicable Zone price for sale to the Government of Pakistan (GOP), with windfall levy applied if the third-party sale price exceeds the base price.
Q: What are the proven and potentially viable plays in the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene, offering significant exploration opportunities.
Q: What are the geological features of the Sulaiman Foldbelt in Pakistan? A: The Sulaiman Foldbelt features proven and potentially viable plays ranging in age from Middle Jurassic to Miocene, making it one of the most prospective regions for oil and gas exploration.
Q: How are production bonuses structured for E&P companies in different zones in Pakistan? A: Production bonuses are structured based on production levels, with specific amounts payable for different ranges of barrels of oil equivalent per day (BOE/d), varying by zones.
Q: What are the key elements of the Pakistan Offshore Petroleum (Exploration & Production) Rules 2023? A: Key elements include licensing procedures, work obligations, fiscal terms, environmental protection measures, and guidelines for safe and efficient offshore exploration and production activities.
Q: What fiscal incentives are provided under the Tight Gas (Exploration & Production) Policy 2011 in Pakistan? A: Fiscal incentives include favorable pricing mechanisms, reduced royalties, and tax exemptions to encourage the exploration and production of tight gas resources.
Q: How does the government of Pakistan promote transparency in the oil and gas sector? A: The government promotes transparency through competitive bidding processes, public disclosure of bidding results, regulatory oversight by DGPC, and compliance with national and international standards.
Q: What legal frameworks govern the taxation of income from oil and gas operations in Pakistan? A: The taxation of income from oil and gas operations is governed by the Income Tax Ordinance 2001, specifically the Fifth Schedule, which outlines the tax treatment for petroleum operations.
Q: How many oil and gas fields were discovered by Union Texas Pakistan in the Lower Indus Basin? A: Union Texas Pakistan discovered multiple oil and gas fields in the Lower Indus Basin, including the significant Khaskeli oil field in 1981.
Q: What is the estimated balance recoverable oil reserves in Pakistan as of the latest data? A: The estimated balance recoverable oil reserves in Pakistan are approximately 192.91 million barrels.
Q: What is the total length of the gas transmission and distribution network in Pakistan? A: The total length of the gas transmission and distribution network in Pakistan is about 165,800 kilometers.
Q: What are the estimated original recoverable gas reserves at the Sui Gas Field in Pakistan? A: The estimated original recoverable gas reserves at the Sui Gas Field are about 13 trillion cubic feet (Tcf).
Q: What percentage of Pakistan’s energy demand is met by natural gas? A: Natural gas meets over 80% of Pakistan’s energy demand.
Q: What are the geological features of the Lower Indus Basin in Pakistan? A: The Lower Indus Basin features proven and potentially viable plays ranging in age from Pre-Cambrian to recent, making it a key area for oil and gas exploration.
Q: How are the exploration and production activities monitored in Pakistan? A: Exploration and production activities are monitored by the Directorate General of Petroleum Concessions (DGPC), which oversees compliance with regulatory requirements, work obligations, and safety standards.
Q: What advanced technologies are used for shale gas exploration in Pakistan? A: Advanced technologies include horizontal drilling, hydraulic fracturing, and detailed geological assessments to accurately identify and exploit shale gas resources.
Q: What is the role of Government Holdings (Pvt) Limited in Pakistan’s offshore exploration? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in offshore licenses, partnering with companies like PPL and PEL to explore and develop offshore resources.
Q: What are the key geological features of the Makran Offshore Basin? A: The Makran Offshore Basin features potentially viable plays ranging in age from Middle – Upper Miocene to Pleistocene, located along the Makran coast and offering significant potential for hydrocarbon discoveries.
Q: What legal provisions exist for environmental protection during oil and gas operations in Pakistan? A: Environmental protection measures include compliance with national environmental regulations, conducting environmental impact assessments, and implementing best practices to minimize ecological impact.
Q: What incentives are provided for the development of Low BTU Gas in Pakistan? A: Incentives include favorable pricing mechanisms, regulatory support, and policies to encourage the exploitation of Low BTU Gas resources.
Q: What is the significance of the Petroleum Exploration and Production Policy 2012 for Pakistan’s oil and gas sector? A: The Petroleum Exploration and Production Policy 2012 provides a comprehensive framework for exploration and production activities, offering fiscal incentives, regulatory support, and guidelines for safe and efficient operations.
Q: How are social welfare contributions utilized by E&P companies in Pakistan? A: Social welfare contributions are used for local development projects, including infrastructure improvements, education, healthcare, and community welfare initiatives in areas where oil and gas operations are conducted.
Q: What are the third-party access rules for oil and gas pipelines in Pakistan? A: The third-party access rules allow E&P companies to construct and operate pipelines under an open-access regime, ensuring fair usage and compliance with regulatory requirements.
Q: How many zones are defined for onshore oil and gas exploration in Pakistan? A: Onshore areas in Pakistan are divided into four zones: ZONE-I, ZONE-I(F), ZONE-II, and ZONE-III.
Q: What is the estimated total in-place shale gas resource in Pakistan according to the USAID study? A: The estimated total in-place shale gas resource in Pakistan is 3,778 Tcf, with 188 Tcf of technically recoverable free gas.
Q: How many oil and gas discoveries have been made in Pakistan’s Middle Indus Basin? A: Multiple discoveries have been made in the Middle Indus Basin, including significant finds by companies like Eni, OMV, and OGDCL.
Q: What is the success rate for oil and gas drilling in Pakistan compared to the international rate? A: The success rate in Pakistan is 1:2.7, compared to the international rate of 1:10.
Q: What are the proven and potentially viable plays in the Kirthar Foldbelt? A: Proven and potentially viable plays in the Kirthar Foldbelt range in age from Triassic to recent, offering significant exploration opportunities.
Q: What are the main challenges faced in drilling offshore wells in Pakistan? A: Main challenges include high pressures in the Miocene section, deepwater drilling complexities, and the need for advanced drilling technologies to reach target objectives.
Q: How is the exploration potential in Pakistan’s sedimentary basins assessed? A: Exploration potential is assessed through detailed geological studies, seismic surveys, and drilling activities, supported by modern technology and comprehensive basin studies.
Q: What are the key geological features of the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene, making it a significant area for oil and gas exploration.
Q: What is the significance of the Indus Offshore Basin for Pakistan’s energy sector? A: The Indus Offshore Basin holds significant potential for hydrocarbon discoveries, with large unexplored areas offering opportunities for major oil and gas finds using advanced seismic and drilling technologies.
Q: What modern technologies have facilitated recent oil and gas discoveries in Pakistan? A: Technologies such as 3D seismic surveys, horizontal drilling, and hydraulic fracturing have facilitated recent discoveries and increased exploration potential in Pakistan.
Q: What are the main provisions of the Pakistan Onshore Petroleum (Exploration & Production) Rules 2013? A: The rules provide a regulatory framework for onshore exploration and production activities, ensuring compliance with national standards and facilitating investment.
Q: How does the government of Pakistan ensure competitive bidding for oil and gas exploration blocks? A: The government ensures competitive bidding by issuing Invitations to Bid, maintaining transparency, and following a structured evaluation process for bids received.
Q: What is the role of local E&P companies in joint ventures with foreign companies in Pakistan? A: Local E&P companies, including GHPL, have mandatory participation with working interest in joint ventures with foreign companies, as specified by the Petroleum Policy.
Q: What legal frameworks govern the safety in drilling and development activities in Pakistan’s oil and gas sector? A: The Oil and Gas (Safety in Drilling & Development) Regulations 1974 govern safety in drilling and development activities, ensuring compliance with national safety standards.
Q: How does the government of Pakistan promote foreign investment in the oil and gas sector? A: The government promotes foreign investment through favorable policies, regulatory support, fiscal incentives, and guarantees under the Foreign Investment Protection Law.
Q: What are the estimated cumulative production figures for natural gas in Pakistan? A: The cumulative production figures for natural gas in Pakistan are approximately 44,908.608 billion cubic feet (BCF).
Q: How many oil and gas discoveries have been made in Pakistan’s Lower Indus Basin? A: Multiple discoveries have been made, including significant finds by Union Texas Pakistan, PPL, and other companies.
Q: What is the estimated total in-place shale oil resource in Pakistan according to the USAID study? A: The estimated total in-place shale oil resource in Pakistan is 2,323 billion stock tank barrels (BSTB).
Q: What is the geographical extent of Pakistan’s offshore sedimentary basins? A: Pakistan’s offshore sedimentary basins extend along the coast and include the Indus and Makran basins, covering significant areas with potential for hydrocarbon discoveries.
Q: How many production sharing agreements does Government Holdings (Pvt) Limited hold in offshore licenses? A: Government Holdings (Pvt) Limited holds Production Sharing Agreements in 2 offshore licenses with PPL and PEL in the Indus offshore.
Q: What are the geological features of the Sulaiman Foldbelt in Pakistan? A: The Sulaiman Foldbelt features proven and potentially viable plays ranging in age from Middle Jurassic to Miocene, making it one of the most prospective regions for oil and gas exploration.
Q: How are exploration and production activities monitored in Pakistan? A: Activities are monitored through the Directorate General of Petroleum Concessions (DGPC), which oversees compliance with regulatory requirements and work obligations.
Q: What modern technologies are used for seismic surveys in Pakistan’s offshore oil and gas exploration? A: Technologies used include advanced 2D and 3D seismic surveys, along with other geophysical techniques to identify potential hydrocarbon reservoirs.
Q: What is the importance of the Kohat Basin in Pakistan’s oil and gas sector? A: The Kohat Basin is important due to its series of oil and gas discoveries, starting with the first commercial discovery by OGDCL in 1999, making it a key area for exploration.
Q: What are the main geological features explored in the Balochistan Basin? A: The Balochistan Basin is explored for potentially viable plays ranging in age from Paleocene to Oligocene, offering significant opportunities for hydrocarbon exploration.
Q: How are the social welfare contributions required from E&P companies in Pakistan structured? A: Contributions are structured based on the exploration and production phases and production levels, with specific amounts allocated for local development projects in the areas where operations are conducted.
Q: What is the role of the Directorate General of Petroleum Concessions (DGPC) in Pakistan? A: The DGPC is responsible for administering and regulating upstream activities, including issuing licenses, overseeing exploration and production operations, and ensuring compliance with regulatory requirements.
Q: What are the training contributions required from E&P companies during the exploration phase in Pakistan? A: E&P companies are required to contribute USD 25,000 per year during the exploration phase for training purposes, as per the Petroleum Policy.
Q: What legal framework governs offshore petroleum exploration and production in Pakistan? A: The Pakistan Offshore Petroleum (Exploration & Production) Rules 2003 and subsequent amendments govern offshore exploration and production activities.
Q: How is the corporate income tax rate for oil and gas companies structured in Pakistan? A: The corporate income tax rate for oil and gas companies is capped at 40% of profits and gains, with royalty payments allowed as an expense item.
Q: What is the cumulative production of oil in Pakistan as of the latest data? A: The cumulative production of oil in Pakistan is approximately 1,036.049 million barrels.
Q: What are the estimated balance recoverable gas reserves in Pakistan? A: The estimated balance recoverable gas reserves in Pakistan are approximately 18.339 trillion cubic feet (TCF).
Q: How many exploratory and development wells were drilled in Pakistan during 2022-23? A: A total of 47 wells (15 exploratory and 32 development) were drilled during 2022-23.
Q: What is the average daily oil production in Pakistan for the year 2022-23? A: The average daily oil production in Pakistan for the year 2022-23 was 69,513 barrels per day.
Q: What are the main sources of Pakistan’s energy supply? A: The main sources include natural gas, oil, coal, hydroelectricity, nuclear power, and renewable energy.
Q: What are the key geological features of the Kohat-Potwar Basin? A: The Kohat-Potwar Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Miocene, making it a significant area for oil and gas exploration.
Q: What technologies are used for seismic surveys in Pakistan’s onshore oil and gas exploration? A: Technologies include advanced 2D and 3D seismic surveys, as well as other geophysical techniques to accurately identify potential hydrocarbon reservoirs.
Q: What is the role of OGRA in regulating the oil and gas sector in Pakistan? A: OGRA regulates the midstream and downstream oil and gas sectors, ensuring compliance with safety standards, fair practices, and regulatory requirements.
Q: How does the government ensure competitive bidding for oil and gas exploration blocks in Pakistan? A: The government ensures competitive bidding by issuing Invitations to Bid, maintaining transparency, and following a structured evaluation process for bids received.
Q: What is the significance of the Indus Fan in Pakistan’s offshore exploration? A: The Indus Fan is significant as it is the second largest delta/fan system in the world, providing considerable potential for hydrocarbon discoveries.
Q: What are the main elements of the work unit concept in petroleum concession agreements in Pakistan? A: The work unit concept provides flexibility by allowing petroleum right holders to finalize work programs based on technical judgment rather than fixed seismic coverage and the number of wells.
Q: How does the government of Pakistan ensure transparency in the bidding process for oil and gas blocks? A: Transparency is ensured by issuing Invitations to Bid in national newspapers and on the MPNR website, maintaining a minimum validity period of 60 days, and following a competitive bidding process.
Q: What are the incentives for shale gas exploration in Pakistan? A: Incentives include favorable fiscal terms, regulatory support, and technical assistance, such as the study conducted with USAID to identify shale gas potential.
Q: How are marginal/stranded gas fields incentivized for development in Pakistan? A: Marginal/stranded gas fields are incentivized through specific gas pricing policies and criteria, encouraging the development and exploitation of these resources.
Q: How is the gas market regulated for E&P companies operating in Pakistan? A: E&P companies are allowed to construct and operate pipelines for local requirements and exports, regulated by the concerned regulator under an open-access (third party) regime.
Q: What are the estimated total recoverable gas reserves in Pakistan? A: The total recoverable gas reserves in Pakistan are estimated at 63.247 trillion cubic feet (TCF).
Q: What is the drilling density of wells per 1,000 sq. km in Pakistan compared to the global density? A: The drilling density in Pakistan is 3.1 wells per 1,000 sq. km, compared to the global density of 10 wells per 1,000 sq. km.
Q: How many oil and gas discoveries have been made in Pakistan till August 2023? A: A total of 452 oil and gas fields (95 oil and 357 gas and gas/condensate) have been discovered in Pakistan till August 2023.
Q: What is the average daily gas production in Pakistan for the year 2022-23? A: The average daily gas production in Pakistan for the year 2022-23 was 3,259 million cubic feet per day.
Q: What are the main components of Pakistan’s energy mix? A: The main components include natural gas, oil, coal, and hydropower.
Q: What are the main features of the work unit concept in petroleum concession agreements in Pakistan? A: The work unit concept allows flexibility in discharge of work obligations based on technical judgment rather than fixed seismic coverage and number of wells.
Q: What seismic techniques are employed to explore the Indus Offshore Basin in Pakistan? A: Advanced 2D and 3D seismic surveys are employed to explore the Indus Offshore Basin in Pakistan, aiming to identify potential hydrocarbon reservoirs.
Q: How is the base price for natural gas sales to third parties determined in Pakistan? A: The base price for natural gas sales to third parties is the applicable Zone price for sale to the Government of Pakistan (GOP), with windfall levy applied if the third-party sale price exceeds the base price.
Q: What are the proven and potentially viable plays in the Punjab Platform Basin? A: The Punjab Platform Basin features proven and potentially viable plays ranging in age from Infra-Cambrian to Eocene, offering significant exploration opportunities.
Q: What are the geological features of the Sulaiman Foldbelt in Pakistan? A: The Sulaiman Foldbelt features proven and potentially viable plays ranging in age from Middle Jurassic to Miocene, making it one of the most prospective regions for oil and gas exploration.
