DGPC has publicly opened bids for 20 Onshore Blocks for grant of Petroleum Exploration Rights through open bidding today at Petroleum House, Islamabad. The minimum investment to be carried out by the Exploration and Production (E&P) companies in these Blocks for prospecting will be over USD 71 million in three years. Apart from E&P activities, the successful companies will also spend over USD 1.3 million in social welfare for the areas of their respective Blocks. For blocks that have discoveries, investments of several hundred million dollars will be made by these companies to develop the production.
The auction of new oil & gas blocks is part of the incumbent government strategy to revive E&P activities in the country which had been ignored by previous governments. The current government also aimed at less reliance on imports in the oil and gas by introducing ease-of-doing-business in petroleum sector and transparency to ensure a level-playing field for all competitors in E&P sector.
The onset of E&P activities will help to create job opportunities and possible decrease in import bill.
