Asia Pulse, ISLAMABAD – The World Bank has estimated that original recoverable gas reserves in Pakistan are much more than official estimates of 42 trillion cubic feet (tcf), which needed to be explored and developed through hi-tech surveys and negotiations with the local population.
Besides the oil companies, the Bank has asked the government to negotiate a new revenue sharing agreement with tribal leaders, the people at large in Balochistan, to conduct petroleum exploration and production activities without law and order problem, a senior government official said on Monday.
The Bank has also pointed out that a concerted effort should be made to explore stratigraphic and more subtle traps which could add substantial oil and gas reserves because most of the structural traps have already been drilled.
“Efforts in this regard may add substantial reserves, and incentives should be introduced to encourage the use of the advances in seismic acquisition and processing techniques,” the official said, quoting a recent communication from the World Bank.
The Bank has also called for carrying out promotional surveys, such as, aero-magnetic, gravity and seismic, preferably through joint ventures with the private sector to attract industry interest into areas whose petroleum potential remains to be established.
The Bank said that there is no question that the petroleum potential of Pakistan is far from established, given frequent discoveries, some significant.
Original recoverable gas reserves have increased from 31.2 tcf in 1992 to 41.9 tcf in 2002. The Bank said analysis of the existing contracts revealed that the average government intake in Pakistan amounted to 45 to 50 percent, which was on the lower side by international standards, but reasonable considering prospectivity, perceived political risk and desirability to attract investments.
The Bank has also asked the government to facilitate the administrative environment under which investors operate, particularly by having directorate of petroleum concessions actively facilitate transactions with the customs, tax and other administrative bodies.
