ISLAMABAD: The Federal government has approved revival of 11 revoked licenses ostensibly for enhancing the production activities of oil & gas in the country to meet the burgeoning energy needs of the country.
According to sources, federal government has approved framework for revival of 11 revoked licenses of three Exploration and Production (E&P) companies through out of court settlement and with effect to this decision there will be roughly $ 100 million worth of investment in 11 exploration blocks while after the restoration of these licenses the national exchequer will receive approximately $ 5 million within next three months. There will be available job opportunities for more than 5000 people with the start of oil and gas exploration activities in the said 11 blocks, said sources.
They added that foreign minister Bilawal Bhutto Zardari and Minister for Trade Syed Naveed Qamar have played the main role for the revival of 11 revoked petroleum exploration licenses during a recent meeting of the federal cabinet.
“The government has restored five licenses of Dewan Petroleum, five licenses of Pakistan Exploration Limited (PEL) and one license of Oil & Gas Investment Company,” said the sources.
Sources said that the Petroleum Division, in a recent cabinet meeting, briefed that the government had granted exclusive petroleum exploration licences for an initial period of five years through a competitive bidding process. However, the licences were revoked mainly because the companies failed to undertake the committed work programmes during the stipulated time period and did not meet financial obligations to fulfil the goals of social welfare, training, rent and production bonus.
According to sources, a framework for the revival of revoked licences through an out-of-court settlement was earlier submitted to the Economic Coordination Committee (ECC) of the cabinet for consideration and approval. And, after getting ECC nod, the Petroleum Division sought fresh approval of the prime minister as minister in charge of the Petroleum Division for submission of a summary to the cabinet while later, the framework was submitted to the cabinet for its consideration and approval.
It is pertinent to mention that Pakistanis are bearing the brunt of skyrocketing prices of petroleum products and power tariff for a long time while revival revoked licenses of 11 exploration blocks will enhance exploration and production activities in the country. And, the increase in the exploration and production is important while it will be helpful for meeting the future energy needs of the country.
