Khyber Pakhtunkhwa is energy rich Province producing more than 50% of National Crude Oil. Khyber Pakhtunkhwa has become center of Oil & Gas Exploration and Production. Recoverable Potential of KP is 1.1 Billion Barrels Oil and 16 Trillion Cubic feet Gas. Expected production in 2025 of oil is 200,000 barrels per day and 2000 Million Cubic Feet of Gas per day. We expect investment of $ 200 Million in oil & gas exploration at IRR of 25% and Revenue of over $ 150 Million in Services companies. The Government of Khyber Pakhtunkhwa Establish a Technical Laboratory on Commercial basis to accelerate E&P activities in the Province.
The Government of Khyber Pakhtunkhwa being cognizant of the opportunities in Oil and Gas Exploration and Production sectors has developed systems to facilitate foreign investment in Khyber Pakhtunkhwa. It has formed an Energy Apex Committee (EAC) chaired by the Chief Minister, Government of Khyber Pakhtunkhwa. This high powered committee irons out any and all impediments that a foreign investor may encounter. Government of Khyber Pakhtunkhwa invites your participation in Oil & Gas Exploration and Production in Khyber Pakhtunkhwa, Pakistan.
Chief Minister, Government of Khyber Pakhtunkhwa
Khyber Pakhtunkhwa is the new Geological Frontier, presently 14 NOCs/IOCs Exploration and Production Companies are working in Khyber Pakhtunkhwa. The Petroleum Policy 2012 and all previous ones much high well head price for Oil and Gas Zone-1 in Khyber Pakhtunkhwa which increase the returns on investment and lowers the risk. Government of Khyber Pakhtunkhwa via KPOGCL have signed MOUs with Russian company ‘ROSGEO’ and American company ‘Hycarbex’ to promote the E&P activities and also to attract the international Oil companies for investment in the Province.
Muhammad Atif Khan
Minister for Energy & Power, Government of Khyber Pakhtunkhwa
Khyber Pakhtunkhwa proves to be an extremely lucrative source of investment and prominent among them are including:
- O&G Wells Drilling Success Ratio 1:2.8
- >50% of Pakistan’s Crude Oil Production
- >15% of Pakistan’s Natural Gas Production
- >25% of Pakistan’s LPG Production
- High Wellhead Price for Geological Zone-1 (Khyber Pakhtunkhwa)
- Underexplored Geological Frontier
- 14 NOCs/IOCs are Currently Active
Engineer Muhammad Naeem Khan
Secretary Energy & Power Department, Government of Khyber Pakhtunkhwa
Khyber Pakhtunkhwa – The New Geological Frontier for Oil, Natural Gas and LPG.
The Province of Khyber Pakhtunkhwa is rich in Oil and Gas reserves and huge deposits of oil & gas have been discovered in southern belt of the Province, including district Kohat, Karak & Hangu. Due to the enabling environment created by the Government of Khyber Pakhtunkhwa through KPOGCL the province has become the largest oil producer province in Pakistan. Today it is producing more than 50% of national crude oil. It is also producing 400 million cubic feet of gas per day and 510 tons of LPG per day. KP holds potential for new exciting discoveries, particularly in Kohat Basin which has become main area of focus after successful discoveries by OGDCL and MOL. Most of the area of KP is still lying unexplored and therefore, has future hydrocarbon prospects in the Province. According to one estimate Khyber Pakhtunkhwa has Natural Gas recoverable reserves of 16 Trillion Cubic Feet and Oil reserves exceeding 1.1 Billion Barrels of Oil. The so-called ‘kitchen’ in Khyber Pakhtunkhwa is about ten times thicker than Pothwar basin. Oil and Gas Development Company Limited (OGDCL) and MOL (Hungarian) are two main Exploration & Production holding production leases in KP there are 21 Exploration Blocks out of which 19 were inactive/dormant in year 2013. But after the relentless effort of KPOGCL in 17 blocks activities have been started.
Similarly, Chinese experts & engineers spent few months in the camps which Showing the security situation become well and foreigner have started trust on the KP Government for their security arrangements and Chief Minister and Chief Secretary taking personal interest and efforts for foolproof security measures for E&P companies that will ultimately accelerate and promote the exploration activities in the Province.
As a result, number of E&P companies working in KPK including KUFPEC, a subsidiary of Kuwait Petroleum Ltd. (KPC) has been awarded Paharpur Block lying in the southern districts, which shows the interest of Exploration & Production in Khyber Pakhtunkhwa. Moreover, Tallahassee and Hycarbex are another two international Oil companies having operatorship in lucrative blocks of Khyber Pakhtunkhwa. Tullow is another international oil company having operatorship in one of the lucrative blocks in Khyber Pakhtunkhwa & FATA. KPOGCL itself is eyeing to be the operator of highly prospective petroleum concession blocks, namely Lakki, DIK East, DIK West, Nowshera& Miran in the Southern districts of Khyber Pakhtunkhwa. The presence of hydrocarbons provides various opportunities of investment in exploration, drilling, refineries, blending units and transportation. Given the high success rate of drilling i.e. 1:2.8 gives the Exploration & Production an impetus to enter Khyber Pakhtunkhwa. The world average is 1:10 and that of Pakistan 1:3.5 thus, the Province offers low risk opportunity for Oil and gas exploration coupled with IRR in the vicinity of 30%.
KPOGCL Chief Executive Officer (CEO):
Cell. No: +92-333-5380240, +92-300-5001038)
Address: 3rd Floor, Ali Tower, Opposite Custom House, University Road, Peshawar, Pakistan