Oil and gas reserves will only be confirmed after exploration: sources

• I cannot determine the size of the reserves until the discovery of sources of oil, natural gas.
• They say data from the geological survey is currently being studied.
• The Petroleum Directorate will conduct auctions in the first quarter of next year.

Islamabad: As Pakistan struggles to meet its growing fuel and energy needs, Petroleum Department sources said Geo News on Saturday that the discovery of oil and gas reserves in the country’s territorial waters could only be confirmed after proper exploration.

“A geological survey was carried out to search for oil and natural gas in the sea [and] Its data is being studied,” sources in the Petroleum Directorate said, adding that it would be too early to claim that the country had discovered huge oil and gas reserves.

Analyzing the way forward, Petroleum Sector sources said that the Director General (DG) Petroleum Concessions Office will conduct the bidding in the first quarter of next year.

Successful bidders will be awarded offshore blocks, they added.

The development is reported by sources as the inflation-weary masses continue to bear the brunt of high utility bills and rising prices due to various reasons, including the rise in oil prices in recent years.

The country spends a significant portion of its foreign exchange reserves on oil imports, and any significant discovery of oil or gas reserves is likely to give a major boost to the nation’s efforts to find energy and also stabilize the economy.

Pakistan’s oil reserves, according to data released by Pakistan Petroleum Information Services, showed a significant decline of 14% year-on-year, falling to 193 million barrels in December 2023 from 2024 million barrels a year earlier. The News had reported in March this year.

In addition, the publication also said natural gas inventories also fell 5% year-on-year to 18,109 billion cubic feet (bcf) compared to 19,042 bcf in December 2022.

In light of the current situation, the current government last month announced plans to auction 20 offshore blocks for oil and gas exploration.

Speaking during a session of the National Assembly Standing Committee on Energy (Department of Petroleum), Petroleum Minister Musadik Malik informed the parliamentary committee that Prime Minister Shehbaz Sharif’s government has accelerated efforts to explore onshore natural gas. New incentives have been introduced to attract companies, as previous policies made exploration expensive and unfeasible.

Regarding reports of the discovery, the sources said the country has conducted explorations for offshore oil and gas reserves on several occasions in the past, stressing that past offshore exploration activities were based on estimates.

“Until gas or oil is discovered, the size of the reserves cannot be determined,” the sources noted.

It is worth mentioning that several oil and gas reserves have been discovered across the country this year.

Last month, the TAL Joint Venture, comprising MOL Pakistan Oil & Gas Co. BV (Operator), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL) and Government Holdings Private Limited (GHPL). ) had announced the discovery of gas condensate in the Razgir-1 exploration well, located in the Kohat district.

Prior to this, natural gas discoveries were made in Punjab’s Rahim Yar Khan and Sindh’s Sujawal and Khairpur districts.