On Wednesday, the government awarded two exploration blocks to local oil and gas exploration and production companies in Punjab and Balochistan.
The representative of the participating companies, director-general of petroleum concessions, and secretary of petroleum signed the petroleum concessions Agreements and exploration licenses for two blocks. The Energy Minister Mohammad Hammad Azhar joined the signing ceremony.
A joint venture led by Mari petroleum company limited as operator and comprising partners Pakistan oil field limited and spud energy private limited received block no 3068-9 Nareli, Loralai, Balochistan. MCPL, a reputed company owned by the Fauji Foundation and the Government of Pakistan, will have a 39% share and will operate the block. POL will hold 32%, and SEPL will hold 29%.
Furthermore, the joint venture of POL and MCPL also received block no 3372-25 North Dhurnal of Chakwal in Punjab. However, in this block, POL will hold 60% shares and also operate the block, while MCPL will hold 40% shares. It is revealed that international firms also showed intense interest in exploration activities in Pakistan, but local companies acquired all recent blocks.
The allocated for both blocks is $24.32 million for the period of three years. The companies are required to spend a minimum of $30000 per year in each block on social welfare scheme, which would finally generate economic activity in the area.