February, 22, 2024
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CCI Boosts Oil and Gas Exploration with Policy Amendments

CCI Boosts Oil and Gas Exploration with Policy Amendments

Infostani International: In a significant move, the Council of Common Interests (CCI) has approved amendments to the 2012 Petroleum Policy to boost oil and gas exploration in Pakistan. Chaired by Caretaker Prime Minister Anwaarul Haq Kakar, the 51st CCI meeting marked key decisions to support gas exploration, address challenges in specific petroleum zones, and outline policies for extracting tight gas. These measures are expected to have a substantial impact on the country’s energy sector, fostering exploration and mitigating circular debt.


CCI Approves Amendments to Petroleum Policy 2012, Unleashing Potential for Oil and Gas Exploration

On Monday, the Council of Common Interests (CCI) greenlit amendments proposed by the Petroleum Division to the 2012 Petroleum Policy, aiming to boost the exploration of new oil and gas reserves. The 51st CCI meeting, chaired by Caretaker Prime Minister Anwaarul Haq Kakar, saw approval for gas exploration companies to utilize their existing licenses in the quest for oil and gas reserves.

Additionally, the CCI sanctioned the Petroleum Division’s recommendation to offer a more favorable wellhead price to oil and gas companies operating in the 1(F) petroleum zone. Recognizing the challenges posed by the difficult terrain and lack of facilities in the southern border areas of Khyber-Pakhtunkhwa and Balochistan, the council also greenlit the activation of leases for oil and gas until the economic viability of the reservoirs is achieved.

CCI Boosts Oil and Gas Exploration with Policy Amendments
CCI approves amendments in petroleum policy to encourage oil, and gas exploration

CCI Approves Exploration and Production Policy 2024 for Tight Gas and Increases Natural Gas Sale Rate to Reduce Circular Debt

Furthermore, the CCI granted approval for the draft of the Exploration and Production Policy 2024 for Tight Gas. This policy outlines details such as tight gas prices, incentives for exploration promotion, and the regulatory framework for its utilization. Tight gas, characterized by reservoirs requiring unconventional extraction methods, was noted to have an estimated 35 trillion cubic feet of reserves in the country.

In line with the amendments in the new policy, the CCI agreed to increase the rate for selling natural gas to third parties on a commercial basis from 10 percent to 35 percent. This adjustment is expected to contribute to reducing the circular debt. The meeting, attended by caretaker federal ministers for finance, privatization, law, and justice, along with the four provincial chief ministers and high-level officials, marked a significant step in shaping the country’s energy exploration and production landscape.