The fact is the E&P sector has witnessed a spate of activities on the part of all stakeholders, including government and industry, starting with the announcement of Petroleum Policy 2009 and subsequent bidding of exploration blocks, most of which are in an advanced stage of exploration, followed by the tight gas and low BTU policies and Petroleum Policy 2012, the last acknowledged as particularly investor-friendly by local and international E&P companies.
As all industry professionals are well aware, the exploration cycle is protracted with a timeline of around eight years from the start of exploration activities to production. Moreover, with the days of easy finds long over and unexplored reservoirs getting increasingly deeper and complex, E&P business has become more and more capital and technology intensive. It may therefore be a little premature to assume that no efforts are being made by stakeholders to address the energy deficit.
With regard to development on tight and shale gas, besides the Tight Gas Policy, which is already in place, there has already been a tight gas discovery in Kirthar Block, for which a Sale Purchase Agreement has already been signed. As for shale gas, according to reliable sources, Research and Development work based on collection and analysis of well data as well as a regional study was initiated two years ago and is progressing on track.
The writer is Sr. Brand & Communication Manager Petroleum Institute of Pakistan.