An investment exceeding $5 billion in Pakistan’s oil and gas sector faces potential risks.
Recent assessments suggest that the Petroleum Division’s framework for implementing investments in the oil and gas sector may not align with the policy guidelines approved by the Council of Common Interests (CCI). The discrepancy raises concerns about the sector’s future of substantial capital infusion.
The Petroleum Ministry has finalized this framework, which will be presented at the upcoming Executive Committee of the National Economic Council (ECNEC) meeting this Friday.
Under the revised Exploration and Production Policy, private companies may sell up to 35% of newly discovered gas to private entities, a significant shift under the new E&P framework.
However, sources reveal that the 15 points outlined in the proposed framework could jeopardize the planned $5 billion investment.
The development follows a July 5, 2024, meeting where domestic and international petroleum companies met with the Prime Minister, committing to a $5 billion investment in Pakistan’s oil and gas exploration and production over the next three years. The alignment of policy implementation with industry expectations remains crucial to securing these investments.
