20:33
Unknown
KARACHI: The government of Pakistan has given an extension of 90 days for the interested parties to submit their bids for the 60 oil and gas exploration and production blocs put for auction, said an official on Tuesday.
Earlier, the last date to submit the bids was December 10, which has been extended to March 10, 2013, said official.
Officials said that the date was extended due to limited response. Industry sources said that the date extension is a routine matter, as it takes time to conduct studies and surveys before placing the bid.
The release is part of a new policy to spur development of the country’s oil and gas industry that includes a rise in rates for any gas produced to $6-6.60/MMBtu from $4.20/MMBtu earlier.
The rate for offshore blocs in areas designated as shallow zones is set higher at $7/MMBtu, deep zones at $8/MMBtu and ultra-deep zones at $9/MMBtu, said official.
Exploration activity in Pakistan has slowed in recent years due to low prices offered by the government and the impact of the circular debt issues in the oil and gas sector.
Pakistan’s current domestic gas demand exceeds its production capacity of 4.2bcf per day by 1.2-1.4bcf per day, which increases to two billion cubic feet per day in winter, said official.
Earlier, the last date to submit the bids was December 10, which has been extended to March 10, 2013, said official.
Officials said that the date was extended due to limited response. Industry sources said that the date extension is a routine matter, as it takes time to conduct studies and surveys before placing the bid.
The release is part of a new policy to spur development of the country’s oil and gas industry that includes a rise in rates for any gas produced to $6-6.60/MMBtu from $4.20/MMBtu earlier.
The rate for offshore blocs in areas designated as shallow zones is set higher at $7/MMBtu, deep zones at $8/MMBtu and ultra-deep zones at $9/MMBtu, said official.
Exploration activity in Pakistan has slowed in recent years due to low prices offered by the government and the impact of the circular debt issues in the oil and gas sector.
Pakistan’s current domestic gas demand exceeds its production capacity of 4.2bcf per day by 1.2-1.4bcf per day, which increases to two billion cubic feet per day in winter, said official.
Posted in: Business news
0 comments:
Post a Comment