LONDON: Pointing out Pakistan’s vast potential for exploration of oil and gas, Dr Asim Hussain, Advisor to PM on Petroleum and Natural Resources, has urged foreign investors to take advantage of a liberal policy package announced by the government in this sector. Inaugurating the two-day ‘Pakistan Exploration Promotion Conference 2009’ on Thursday at a Central London hotel, Dr Hussain said Pakistan offers attractive investment opportunities with liberal terms and competitive fiscal regime. “The government has announced a liberal policy package for potential investors in oil and gas exploration with the objective of promoting exploration and productive activities in the country and to attract investment in the upstream sector.” He said the new petroleum exploration and production policy provides opportunities for all investors for a friendly, profitable and competitive environment in the oil and gas industry. Regarding hydrocarbon potential in Pakistan’s basin, the minister said it is estimated at 27 billion barrels of oil and 280 trillion cubic feet of gas. “Based on that assumption, so far we have proven only 3.4 per cent oil and 19 per cent gas out of this prognostic potential. There thus exists vast potential for exploration. This provides a win-win situation for all stakeholders including the government,” he said. The minister further informed the gathering that the oil and gas sector is working in a fully deregulated environment with a level playing field for private and public sectors. “We are offering 54 blocks to exploration companies for competitive bidding while other free areas are also available to any company interested,” Dr Hussain said. He also stated that the government was prepared to accommodate as far as possible to facilitate the needs and requirements of multinational investors, including joint venture arrangements with Pakistani private and public sector companies. Speaking about Pakistan’s energy requirements, he said the South Asian country is importing 85 per cent of its oil requirements comprising 18 million tonnes of crude oil and petroleum products mainly from the Middle East. “We have an annual oil refining capacity of 13 million tonnes while another 15 million tonnes per annum is likely to be added within the next three years.” To cater to the fast developing economy to grow at an average of 6.5 per cent per year during the next 10 years, Dr Hussain said the country’s total energy needs will double from 65 to 130 million tones of oil equivalent. He said his country’s current gas production stands at four billion cubic feet per day (BCFD), while requirements are growing at a fast pace and the existing gas fields are declining. “A supply demand gap of 4 bcfd is projected for 2015 which will grow to 6 bcfd by 2020 and 11 bcfd by 2025. Although Pakistan is pursuing gas import options from Iran and Central Asia, these will be remain far short of the requirements and hence the need for an accelerated domestic exploration programme of natural gas.” Dr Hussain pointed out only 742 exploratory wells have been drilled so far out of 80,000 square kilometres of onshore and offshore basis area. These have resulted in more than 221 discoveries containing one billion barrels of oil and 53 trillion cubic feet of gas. With average discovery size of 45 million barrels oil equivalent, highly attractive terms of engagement under a new petroleum policy and together with a large number of open acreages available, Pakistan offers a land of opportunities for any hydrocarbon explorer. Earlier, in his welcome address, Pakistan High Commissioner Wajid Shamsul Hasan spoke of the present government’s endeavours to promote foreign investment in upstream petroleum sector with a view to exploit indigenous hydrocarbon resources in an optimal manner while maximising returns for foreign investors. “The driving force behind these policies has been the need to alleviate heavy dependence on imported oil, as fluctuations in the international market have deep budgetary implications for a developing country like Pakistan.” He mentioned that Pakistan’s import bill for oil, minerals, fuels, lubricants and related materials was US$9.3 billion in 2007-08. The high commissioner also noted that foreign investment in the exploration sector has grown from US$509.4 million in 2008 to US$612.1 million by the end of June 2009. Oil and Gas Development Company Managing Director Zahid Hussain also spoke on the occasion and highlighted various features of potential exploration areas both onshore and off-shore. A similar conference is due to take place in Houston, US on July 27 and 28, and in the Canadian city of Calgary on July 30 and 31.