This is pretty significant news, and one that confirms that foreign investment will continue to flood into Pakistan if the conditions and policies remain good.
http://pakistantimes.net/2003/11/26/business.htm
Petroleum Sector attracts $1 bn Investment
Minister for Petroleum and Natural Resources, Ch. Nouraiz Shakoor Tuesday said about one billion dollars were invested in exploration and production sector in Pakistan by foreign oil and gas companies during the last year. The investment was the result of continuity of policies of Musharraf government and further steps taken by present regime to accelerate pace of development activities in petroleum sector, he said while talking to newsmen here. The Minister said during the last year, 13 licenses were granted over an area covering almost 20,000 sq kilometers in all the four provinces. A total of 68 wells - 27 exploratory and 41 appraisal/development wells - were drilled in one year, he added.
Nouraiz Shakoor said five oil and gas discoveries of good commercial volume were made, three of OGDCL and one each of MOL and OPL while four new gas fields including Zamzama, Mazarani, Bhit, and Sawan were put into production. The Production Sharing Agreement (PSA) for exploration in ultra deep waters of Pakistan was signed with TOTAL of France during President Musharraf’s visit to France in July 2003, he added. The Minister said as a result of government’s policies, the production of natural gas in the country has increased substantially. Due to this increase the additional gas has been allocated to the power plants and other industry using furnace oil, resulting import of furnace oil has been eliminated and hence saving of US $ 290 million during the period of July-December 2003 as compared to the import figure for corresponding period of last year. Bosicor Pakistan Limited (BPL), a second hand refinery of capacity of 30,000 barrels per day (bpd) has been set up at Hub District Lasbella, Balochistan in the private sector, he added. The cost of the project was US $ 48 million. The refinery started operation in November rhis year, he added.
The Minister said MOU has been signed between State Petroleum and Petrochemical Corporation (PERAC), Pakistan State Oil Company Limited (PSO) and Sunaid Khair Consortium (SKC), a joint venture of Saudi Arabia and Canadian companies for setting up of 6 million tons per annum refinery project. The estimated cost of the project is $ 1.5 billion. The refinery is expected to be completed by the year 2007. A $ 500 million pipeline form Karachi to Mehmood Kot is being constructed which is planned to be completed in 2004. Nouraiz Shakoor said over 130 new CNG stations have been established during last year, bringing total number of CNG stations to over 450. CNG stations on Motorway M-2 have been established to facilitate the commuters and also to increase utility of the Motorway for enhancing revenues. Approximately 80,000 gasoline vehicles converted to CNG during last year, bringing total number of vehicles converted to CNG to around 400,000, thus replacing about 380,000 tons of motor gasoline, which is a big contribution towards self-reliance and control on environment degradation, he added.