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Opportunities in

Pakistans Upstream
Oil & Gas Sector
www.mpnr.gov.pk
Ministry of Petroleum & Natural Resources
Government of Pakistan
3
Opportunities in Pakistan's Upstream Oil & Gas Sector
Contents
Opportunity Landscape 04
Upstream Oil & Gas Sector 07
Policy Focus
Investment Protection
Onshore Areas
Offshore Areas
Shale Exploitation
Bright Past, Brighter Future
Legal Framework 17
Upstream Procedural and Regulatory Measures 18
Zoning
Concession Award Process
Gas Market
Onshore Package 19
Offshore Package 22
Low BTU Gas 24
Tight Gas 25
Marginal/ Stranded Gas Fields: Gas Pricing & Criteria and Guidelines 2013 26
Open Access to Public Domain Data 27
4
Ministry of Petroleum & Natural Resources, Government of Pakistan
Opportunity Landscape
Pakistan is strategically located within the region
and has a large sedimentary basin covering over
827,000 Sq. Km and spread over both onshore and
offshore. Parts of these sedimentary basins remain
un explored or are under explored, there by providing
ideal investment opportunities to E&P companies. In
addition to the conventional oil and gas resources
there is a huge potential for unconventional resources,
which remain untapped.
Total conventional and unconventional reserves in
Pakistan are estimated at about 160 Tcf and this is one
area where the IOCs, especially the US companies
with their extensive experience and technical
knowhow can play a major role in the exploitation
of this resource and in turn reap rich benefts. The
Government is eager to attract local and multinational
E&P companies in this sector, tapping their operational
experience, extensive data base, trained manpower
and sound fnancial position to make this venture
a success.

Pakistan has a large offshore basin which largely
remains under explored. The Indus offshore is the
5
Opportunities in Pakistan's Upstream Oil & Gas Sector
second largest submarine fan system in the world
and analogous to the prolifc oil and gas producing
Niger, Mahakam and Nile deltas.
The Indus offshore has experienced only limited
exploration and provides another opportunity for big
discoveries which can be realized through employing
state of the start seismic and drilling techniques.

Large areas with the onshore sedimentary basin also
remain unexplored or under explored providing yet
another opportunity to companies to explore and
develop a number of different types of structural
and stratigraphic traps using the latest seismic and
drilling technology.
To help facilitate E&P companies exploit these
opportunities, the Government has in place an
investor friendly Petroleum Policy with attractive
Fiscal and regulatory terms. Availability of trained and
experienced manpower in Pakistan and presence of
one of the most extensive and well developed gas
infrastructure would further assist the IOCs to fully
exploit these attractive opportunities.
6
Ministry of Petroleum & Natural Resources, Government of Pakistan
PUNJAB
IRAN
LAHORE
ISLAMABAD
QUETTA
SKARDU
GILGIT
PESHAWAR
JAMMU &
(DISPUTED TERRITORY)
KASHMIR
SRINAGAR
SINDH
CHINA
KARACHI
GAWADAR
F
R
O
N
T
IE
R
U
N
D
E
F
IN
E
D
MUZAFFAR ABAD
AFGHANISTAN
INDIA
KHYBER PAKHTUNKHWA
BALOCHISTAN
TANDO ALAM
BUZDAR THORA & THORA EAST OGDCL
BUZDAR SOUTH DEEP
OGDCL
DABHI
OGDCL DARU
SONRO
MAZARI
KATO
LAGHARI JUNATHI SOUTH JALAL
PIR
RAJ
RIND
MUBAN
PANIRO
TAJEDI
OGDCL MISAN OGDCL
TANDO GHULAM ALI JAGIR
PASAKHI & PASAKHI NORTH
KUNAR OGDCL
JHABERI SOUTH
TANDO ALLAH YAR OGDCL
JABO
TURK
ALI ZAUR
DARS WEST DARS
OGDCL NUR
MAKHDUMPUR
OGDCL BAGLA BHATTI
FATEH SHAH
FATEH SHAH NORTH
NORAI JAGIR OGDCL
SHAHDINO
DUPHRI
KHASKHELI
SONO OGDCL
SAKHI SOUTH DEEP
MISSRI
SIRAJ SOUTH
BILAL
2468-5 (BADIN-IV SOUTH) PEL
TANDO ALLAH YAR OGDCL
ZAUR WEST ZAUR
(SIRANI) PPL 2468-10
2468-6 (BADIN-IV NORTH) PEL
2468-9 JHERRUCK NHEPL
2468-12 KOTRI
BUKHARI DEEP BUKHARI&
MATLI
LIARI
SOUTH MAZARI
PPL
NARI
SAKHI DEEP
MEYUN ISMAIL DEEP MEYUN ISMAIL
NIM WEST NIM
KEYHOLE G
GOLARCHI
BILAL NORTH
UEPL
UEPL
UEPL
GHUNGHRO
KHORE WAH
NORTH AKRI
OGDCL LASHARI CENTREL & SOUTH KUNAR SOUTH
KOLI
GOPANG
SHAH
NAIMAT BASAL
(MIRPUR KHAS) UEP
2568-7
KHIPRO UEP
UEP ALI
USMAN
KAUSAR
UMAR UEPL
PALLI
BOBI DHAMARKI OGDCL
OGDCL
PPL
(MIRPUR KHAS WEST) PEL
(HALA)
JOYA MIR
NANDPUR OGDCL
KANDH KOT
PPL
OGDCL
LOTI
OGDCL
PEL
ADHI PPL TURKWAL
SADKAL OGDCL
3167-1
3070-10
2970-3
(SAKHI SARWAR) BLOCK-28
TULLOW
PIR KOH (ADD)
OGDCL OGDCL
PIR KOH
(MURGHA FAQIR ZAI)
3372-14
OGDCL
CHAK NAURANG OGDCL
CHACHAR
(FATEH JANG)
(LUGAI)
3067-1
NATIVUS
FIMKASSAR OGDCL
MINWAL POL
POL
PAIGE
(MULTANAI)
3168-1
2869-12
(ZAMURDAN)
(LATIF)
2669-3
OMV
POL
(MIRPUR METHELO)
2769-9
POL
PINDORI
POL
BADAR
PEL
OGDCL
ZIN (OLD BLOCK-29)
2868-1
(SAFED KOH)
2763-2
(SHAHANA)
OGDCL
BHAL SYEDAN
IKHLAS
3372-18
BHANGALI
BALKASSAR POL
REHMAT
NATIVUS
2763-1
(LADGASHT)
3067-2
(CHANGAI)
RDC
(GUDDU)
2869-9
(KOHLU)
2968-3
2969-7
(KALCHAS)
OGDCL
OGDCL
(SARUNA)
2567-4
OGDCL
2366-5
Eni
(OFFSHORE INDUS-N)
(JAKHRO)
OGDCL
OGDCL
MISSA KESWAL
2565-1
BLOCK-22
2768-3
PEL
D&PL
SADIQ
PEL HASAN
D&PL
D&PL
KHANPUR
PEL
GWADAR
2561-1
OGDCL
SARI SINGH
2568-8
OGDCL (T.A YAR)
(BANNU WEST)
TULLOW
3370-13
(MARWAT)
3170-2
POL
(KIRTHAR SOUTH)
2567-7
DHODAK
2770-3
(ISLAMGARH)
CHANDA
OGDCL
MOL
(MARGALA NORTH)
3372-21
2769-13
(SALAM)
PEL
PEL
TECHNO PETROLEUM
(KHETWARO)
2769-12
2567-10
(DAPHRO)
PETRONAS
MAZARANI
PPL
2969-8
3370-12
(LATAMBAR)
OGDCL
2869-14
OGDCL
2567-5
(JHANGARA)
(BARKHAN)
PPL
2467-11
(SAJAWAL)
MGCL
2872-1 2871-2
(YAZMAN) (NOOR SOUTH)
(ZARGHUN SOUTH)
MGCL
2266-4
OFFSHORE
INDUS-J
PEL
2871-3
(RUKANPUR)
(MIANWALI)
3271-3
OGDCL
3270-6
(WALI)
(KHANGARH)
2771-2
(CHOLISTAN)
2266-9
OGDCL
2267-1
(OFFSHORE BLOCK-R)
2266-8
(OFFSHORE BLOCK-S)
2769-14
(TEGANI)
OGDCL
OGDCL
(THAL)
2769-15
RODHO
DPL
3073-3
(PUNJAB)
2562-1
PASNI WEST
ZAVER
3371-5
(GURGALOT)
OGDCL
OGDCL
UCH
PAIGE
(ZINDAN)
(PESHAWAR)
3371-13
(KUNRI)
(KALOI)
(NAUSHERWANI)
2764-2
(RAKHSHAN)
MGCL
MGCL
2864-2
2568-3
(KHEWARI)
OGDCL
2667-8
(ZAMZAMA NORTH)
3269-1
(WALI WEST)
SEL
(KHUZDAR SOUTH)
2667-9
3068-2
(HAB)
2566-4
PEL
3068-3
(BLOCK 28 NORTH)
HERITAGE
(ORAKZAI)
3369-1
SEL
3068-4
(LAKHI RUD)
SEL
3370-14
MGCL
(GAMBAT SOUTH)
KHAUR
POL
3372-23
(HISAL)
OGDCL
2568-19
(DIGRI)
(TIRAH)
2468-8
OGDCL
(PAHARPUR)
SEL
3170-5
JANDRAN
OGDCL
OGDCL
JANDRAN WEST
HERITAGE
(SANJAWI)
2969-9
NHEPL
2468-7
2568-18
ZhenHua
(BASKA)
3070-13
DPL
(KALCHAS SOUTH)
DPL
DPL DPL
DPL
DPL
PEL
SARA
SARA WEST OGDCL
(MIRPUR KHAS WEST)
2568-16
PEL
(HARNAI SOUTH)
2967-4
(KHARAN)
PPL PPL
2763-4
(KHARAN WEST)
2763-3
PPL
2764-3
2667-11
(ZAMZAMA SOUTH)
(PALANTAK)
3068-7
OGIL
(SOUTH QILLA SAIFULLAH)
(CHHANNI PULL)
3372-20
(MARGALA)
MOL
OGDCL
KAMAL NORTH
3373-3
3069-8
(KINGRI)
3273-3
(GHAURI)
MGCL
OGDCL
(RAJDHANI)
3373-1
(ZHOB)
PPL
3169-2
3069-4
(SHAAN)
OGDCL NATIVUS
3066-1
(HURAMZAI)
(KALAT)
2866-2
PPL
2768-10
(NEWLARKANA)
PEL
2669-5
(SANGHAR EAST)
PEL
2768-7
(YASIN)
HYCARBEX
(THANO BEG)
2567-11
(SAMANDAR)
OGDCL
(TAL)
3370-3
MOL
(KARAK)
3271-1
MGCL
(KHUZDAR NORTH)
2866-3
OGDCL
M
ARITIM
E
BOUNDARY
UNDEFINED
3070-14
ZAVER
(LORALAI)
(MEHAR)
(SUKHPUR)
2568-20
PPL
(NAUSHAHRO FIROZ)
2668-9
2468-10
(SIRANI)
PPL
CHAK-5 DIM SOUTH OGDCL
CHAK-66
(SINJHORO)
OGDCL
2568-5
LALA JAMALI
CHAK-7A
CHAK63-SE
CHAK-2
HAKEEM DAHO
CHAK-63
RESHAM
OGDCL
(BITRISIM)
2568-4
2468-9
JHERRUCK
NHEPL
OGDCL
2564-4
(RASMALAN)
OGDCL
2564-5
(RASMALAN WEST)
2564-2
(PARKINI BLOCK-A)
(PARKINI BLOCK-B)
2564-3
2868-7
(ZORGARH)
SEL
2866-4
(MARGAND)
2970-5
(RAJANPUR)
POL
(D.G. KHAN)
POL
2969-10
OGDCL
HUNDI
(MAKHAD)
3271-5
MALIR
SEL
2467-13
(OKARA)
3072-7
(LILLA)
PETROSIN
ZAMZAMA
BHP
(KHARAN EAST)
PPL
2764-4
(SUKKUR)
MGCL
2768-9
S.W. MIANO-II
OMV
2972-2
(SUTLEJ)
TOOT OGDCL
(KOTRI NORTH)
2568-21
OMV
MIANO
3273-4
(WARNALI)
ZAVER
KARACHI
2466-8
(BITRISIM EAST)
HERITAGE
2670-1
3068-6
ISEC
(KILLA SAIFULLAH)
PPL
POL
(THAR WEST)
2569-4
OGDCL
2569-3
(SANGHAR SOUTH)
(SHAKRGANJ WEST)
PYRAMID
3072-4
PYRAMID
PYRAMID
2972-4
OGIL
PPL
PPL
PPL
HYCARBEX
OGDCL
OGDCL
NHEPL
NHEPL
(KOTRI)
2468-12
PPL
Eni
OMV
OGDCL
OGDCL
KAL
OGDCL
RAJIAN
OGDCL
3068-5
OGDCL
(CHOTIALI)
3069-5
3270-8
(DALWATI)
MGCL
OGDCL BAHU
JHAL MAGSI SOUTH
OGDCL
PANJPIR OGDCL
3272-16
OMV
SAWAN
(NORTH RATANA)
3372-24
3271-6
(POTWAR SOUTH)
SPUD ENERGY
3170-7
3171-3
3170-8
3169-3
3070-17
2972-5
(VEHARI)
(SURKACH)
(LAYYAH)
(KULACHI)
(KHIU)
(HETU)
3171-2
(NURPUR)
2865-3
(KHARAN-3)
2469-9
(ARMALA)
PPL
3270-7
(GAMBAT)
OMV
2668-5
D&PL
(KANDRA)
PEL
(SADIQABAD)
2870-6
2870-5
(SADIQABAD)
HERITAGE
2763-5
(SOUTH KHARAN)
HERITAGE
(BELA NORTH)
2566-5
SPUD ENERGY
(KIRTHAR)
POGC
2667-7
2668-4
OGDCL
MARI EAST
2769-16
OGDCL
HERITAGE
(ABBOTABAD)
3372-25
3371-16
(PESHAWAR EAST)
SEL
SEL
(HAZRO)
SEL
3372-26
2566-6
(BELA WEST)
HERITAGE
(ISLAMKOT)
2469-10
OGDCL
OGDCL
OGDCL
2667-12
OGIL
(BARAN)
(KHARAN-3)
2865-4
OGDCL
3272-18
(KARSAL)
SPUD ENERGY
3169-4
(BASKA NORTH)
SEL
(HALA)
2568-13
PPL
2967-2
(ZIARAT)
MGCL
POL DHULIAN
3370-10
OGDCL 3370-15 (KARAK NORTH) SEL
3067-3
MGCL
(HARNAI BLOCK)
(RACHNA)
OGDCL
3071-2
BALOCH
OMV
TAJJAL
UEPL
2165-2
ION
2467-9
SARI SOUTH
JUNGSHAHI
2467-12
PPL
SEL
MAKRAN INDUS BASIN
(MEHAR)
D&PL
SUI
PPL
(KHUZDAR)
PPL
2766-1
3071-4
FATEHPUR
SOUTH PISHIN
3068-8
2970-6
2970-7
ALIPUR
2870-8
KHANPUR
KUHAN
DESERT
2762-1
JATI
2467-15
OPL
OPL
LADHANA
OPL
OPL
OPL
OPL
OPL
OPL
2867-5
(KOHAT)
3371-10
OGDCL
OGDCL QADIRPUR
OPL
DHURNAL
OPL
OPL
OPL
OPL
OPL
OPL
OPL DAKHNI
OGDCL
(EAST SANJAWI)
OPL
OPL
Spud Energy
Spud Energy
SURI
2569-5
(KHIPRO EAST)
(BOASTAN)
3067-7
(SHARAN)
2467-16
(SHAHBANDAR)
JATI
KPBV
2467-14
(BOASTAN)
OGDCL
3066-5
3066-5 3066-6
(RANIPUR)
2768-11
(SULEIMAN)
3069-9
3069-10
(MUSAKHEL)
2568-9 NIM OGDCL DIGRI NORTH 2568-22
MOL
(MANZALAI)
MAKORI
(OFFSHORE INDUS-U)
UEP
UEP
UEP
UEP
UEP
UEP
(MIRPUR KHAS)
2568-7
UEP
Eni
(OFFSHORE INDUS-G)
2265-1
OMV Maurice
2767-1
OMV Maurice
OMV Maurice
UCHRI
POL MEYAL
PARIWALI
LATIF
OMV
(MAKHAD)
3271-7
KPBV
(MARU SOUTH)
(MARU)
(RETI)
3273-5
(JHELUM)
MPCL
(SOGHRI)
3371-8
OGDCL
MELA
3371-17
OGDCL
BARATAI
MARI
MGCL
2769-4
(MUBARAK)
OMV Maurice
ENI
Eni Pakistan
BADHRA
BHIT
3071-3
(MULTAN NORTH)
OGDCL
(NASHPA) (NASHPA) OGDCL
RATANA
OPL
3371-15
(DHOK SULTAN)
PPL
SEL
3070-16
(PEZU)
HYCARBEX
3066-4
(HANNA)
MGCL
KADANWARI
ENI
(KUNDIAN)
OGDCL
3271-8
2970-8
(ALIPUR-RP)
OGDCL
UEP
2568-6
(KHIPRO)
2466-7
NIKORESOURCES PAKISTAN
2465-4
NIKORESOURCES PAKISTAN 2466-6
NIKORESOURCES PAKISTAN
OFFSHORE INDUS NORTH
OFFSHORE INDUS-Y
OFFSHORE INDUS-Z
2465-4
OFFSHORE
INDUS-X
NIKORESOURCES
PAKISTAN
(OFFSHORE INDUS-V)
2265-4
UEP
2264-1
(OFFSHORE INDUS-W)
UEP
2264-1
PEL
2365-3
(OFFSHORE INDUS-P)
OFFSHORE
INDUS-O
PEL
2266-7
(EASTERN OFFSHORE INDUS-C)
2366-7
Eni
EASTERN OFFSHORE INDUS-A
2366-6
OGDCL
3700 3200
3200
1800
2000
1700
2700
1800
3200
3200
3100
3600
100
1700
50
100
3300
1700
3100
50
1600
1100 100
600
2600
2100
2100
1
14
16
20
21
22
25
26
28
29
3
35
36
37
42
5 8
9
27
30
39
6
4
7
31
17
24
45
2
13
11
32
23
43
15
19
46
3412
33 40
44
38
41
10
18
Upstream Petroleum Activities
September 2013
100
50
100
50
1600
1100 100
600
Exploration Licence
Force Majeure
Applications For Mining/ D&PL
Mining / D& P Leases
Blocks Under Grant
New Applications Received During The Month
( E.L / D& PL / R.P )
Applications Of Reconnaissance Permit
Reconnaissance Permit
Applications Under Process For Bidding
Blocks Under Bidding
Over Lapped Area
Depth Contours
UpstreamActivities
Active Explorator ell Location
Active Appraisal/Development ell Location
Active Rig Location
Current D eismic Location Onshore
Current D eismic Location Onshore
Province Boundar
Rivers
Maritime Boundar Undefined
Cities
Capital
Directorate General of
Petroleum Concessions
7
Opportunities in Pakistan's Upstream Oil & Gas Sector
Upstream Oil &
Gas Sector
8
Ministry of Petroleum & Natural Resources, Government of Pakistan
Oil and Gas sector in Pakistan has seen phenomenal
growth since the independence in 1947 when oil
quantities produced were scarce. At that time there
was no gas production. Over the past half century
the petroleum industry has played a signifcant role
in national development by making large indigenous
gas discoveries. These sources are supplying gas to
consumption centers through a collective transmission
and distribution network of about 90,900 kilometers.
Pakistan meets about 100% of gas and 17 % of oil
demand from local sources.
Upstream Oil
and Gas Sector
LPGI mported
NuclearE lectriccity
Coal Local
Coal Imported
LPG Local
Gas
CrudeO il Imported
Petroleum ProductsI mported
HydroE lectricity
CrudeO il Local
8 0 0 2 6 0 0 2 5 0 0 2 4 0 0 2 3 0 0 2 2 0 0 2
0
10
20
30
40
50
70
60
M
T
O
E
2007 2009
(Fig.1)
Pakistans Energys Mix
9
Opportunities in Pakistan's Upstream Oil & Gas Sector
TOET onnes of Oil Equivalent
1 00
3
SNGPL GAS PIPELINE EXISTING
SNGPL GAS PIPELINE PLANNED
SSGCL GAS PIPELINE PLANNED
SSGCL GAS PIPELINE EXISTING
HEAD QUARTER (HQ) / TERMINAL
REPEATER / TERMINAL STATION
PURIFICATION PLANT
ABBREVIATIONS
MMBBLS MillionU S Barrels
BCF Billion Cubic Feet
Mw Megawatt
COMPRESSOR STATION
**Source: Pakistan Energy Year Book 2012
COMPRESSOR STATION UNDER CONST.
OIL STORAGE PLANNED
OIL STORAGE EXISTING
OIL REFINERY UNDER CONSTRUCTION
OIL REFINERY EXISTING
OIL PIPELINE UNDER CONST./PLANNED
REFINED OIL PIPELINE EXISTING
LPG PLANT
AVIATION FUELING FACILITY
CONDENSATE PLANT
LPG PLANT PLANNED/UNDER CONST.
CONDENSATE PLANT UNDER CONST.
LPG / NGL PLANT
EXISTING COALFIELDS
COAL OCCURANCES
CONDENSATE FIELDS
GAS FIELDS
OIL FIELDS
CITIES
TOWN
NUCLEAR
THERMAL
HYDEL
NUCLEAR
THERMAL
HYDEL
POWER STATIONS PROPOSED/UNDER CONSTRUCTION
POWER STATIONS EXISTING
OTHER FUELS
OTHER FUELS
WIND
WIND
LEGEND
PURIFICATION PLANT UNDER CONST .
CRUDE OIL PIPELINE EXISTING
Energy Infrastructure
2013
0
0
1
0
0
1
16 0 0
60 0
0 6 2
0
1
6
1
1
0
0
LAKHRA
T H A R
SOR RANGE DIGHARI
MAKERWAL-KURD-SHO
HANGU-ORAKZAI
CHERAT
SALT RANGE
DUKI KHOST SHARIG HARNAI MACH-ABEGUM
PIR ISMAIL ZIARAT
CHAMALANG & MARGAT
THATTA-SONDA
JERRUCK-ONGAR
INDUSEAST
BADIN
CHOI
Muzafarabad
Kach
JOHAN
RASHIT
KOTLI
10 0 2
1
3
00
HUNDI
KOTHAR
PANIRO
KHOREWAH
GOLARCHI
KHASKHELI
BAGLA
NOOR
MAKHDUMPUR
NARI
TURK
TAJEDI
GHUNGHRO
JABO
PIR
KOLI
MISSRI
N.AKRI
RIND
BHATTI
DUPHRI
SONO
PASAHKI
DARU
KATO
TANDO ALAM
KUNAR
MATLI
LASHARI S.
HALIPOTA
BUKHARI
DABHI
LIARI
MAZARI
KUNAR E.
THORA
PASAHKI N.
BUZDAR
TANDOGHULAM ALI
MAZARANI
BOBI
KADANWARI
KANDRA
MIANO
SARA MARI
SADKAL
PINDORI
JOYA MAIR
DHURNAL
BALKASSAR
UCH
ZIN
PIRKOH
LOTI
JANDRAN
SUI
LALPIR
RHODO
DHODAK
SAVI RAGHA
PANJPIR
NANDPUR
TOOT
DAKHNI
DHULIAN
MEYAL
RATANA
PARIWALI
BHAL SAYDAN
MISSA KESWAL BHANGALI
CHAK NAURANG
FIMKASSAR
SIHALA
ADHI
SARI
SAWAN
TURKWAL
MAHI
SURI
SADIQ
HASAN
HAMZA
REHMAT
ZAMZAMA
CHANDA
BHIT
BADHRA
DHAMRAKI
JAKHRO
CHAK-5 DIM
CHAK-5 SOUTH
PALLI
ZARGHUN SOUTH
MANZALAI
HAKEEM DAHO
CHAK-66
CHAK-2
CHAK-63
RESHAM
NORAI JAGIR
KANDHKOT CHACHAR
KHANPUR
BADAR
KHAUR
RAJIAN
KAL
NAIMAT BASAL
QADIRPUR
SIRAJ SOUTH
KAUSAR DEEP
CHAK-7A
ZAUR
SHAHDINO
RAJ
BILAL
MEHAR
ZAUR SOUTH
KEYHOLE-G
UMAR
JHAL MAGSI
LALA JAMALI
MAKORI
BAHU
ZIRKANI
BILALNORTH
USMAN
ALI
RAHIM
KAMALN
CHAK-63 SE
MELA
SARA WEST
ADAM-x1
KONJ
HASEEB
LATIF
MARU
SHAH
NASHPA
RETI
BALOCH
PASAHKI WEST DEEP
SHEKHAN
SAQIB
DOMIAL
LATIF NORTH
SUJAWAL
PIR APAN
OGDC
(PLANNED)
Marshelling Yard
Buffer Terminal
FOTCO Jetty
ZOT
Nassapura
T. Jabba
Faqirabad
Chakpirana
Lalian
Khan Garh
Jahanian
Khushab
DAUD KHEL
Hazro
Malakand
Tangi
Sakhakot
Sawabi
Takhtabai
Chunian
Jalalpur Jattan
Mandi Bahauddin
Chiniot
Chak Jhumra
Bhalwal
Khewra
Bhera
Gharibwal
Farooq Abad
Hafizabad
Kharian
Shikarpur
Shori
Dumboli
Gokart
Sariab
Kolpur
Bhong
Taxila Wah Kamra
Bubak
Fazilpur
Daulatpur
Vihari
Habibabad
Kundian
Machike
Juglot
Chitral
Kotla jam
Kamalia
Samundri
Pasroor
NAUGHAZI
Dipalpur
Topi
Haripur
Hatar
Sanjwal
Mingora
Khazana Shagar
Sh.Manda
Kala
Lachi
Sanghi
Pezu
Tank
Basirpur
Hasilpur
Chishtian Mandi
Daharki
Mirpur Methelo
T.Allahyar
Tando Adam
Daska
Machhianwala
Havailian
Manjuwal
HABIBULLAH P.H
Tandlianwala
KCP
Noshera
ACPL
ACPLOFFICE
Dhamthal
Narowal
Bhawana
Sandhilianwali
Hussain Shah
Sahiwal
Khuthiala Sheikhan
Charbagh
Hangu
Gojra
Jhimpir
Kallar Kahar
Ahmadpur East
Khanpur
Pakpattan
Airfwala
FKPCL
Burewala
Khanewal
Mardan
Shahwali
Permit Chowk
Chowk Sarwar
Shaheed
Satgara
Badiana
Piplan
Talash
Lalamusa
Sillanwali
Haroonabad
Dadhar
Ahmed
Rojhan
12
8 Dia
12
FFC
10X18Kms
ARL-PSO PROPOSED
16 DIA WHITE OIL PIPELINE
MACHIKE-TARUJABBA
ARL-PSO PROPOSED
12 DIA WHITE OIL PIPELINE
MACHIKE-TARUJABBA
26PAPCOWHITEOILPIPELINE
16PARCOKMK PIPELINE
26PAPCOWHITEOILPIPELINE
KHUZDAR
PANJGUR
NOK KUNDI
HYDERABAD
THATTA
BADIN
LARKANA
DADU
SANGHAR
NAWABSHAH
MIRPUR KHAS
SUKKUR
JACOBABAD
RAHIMYAR KHAN
SADIQABAD
SARGODHA
FAISALABAD
SIBI
DERA BUGTI
MUZAFFARGARH
D.G.KHAN
KOT ADDU
BAHAWALPUR
MIAN CHANNUN
JHANG
D.I.KHAN
BANNU
MIANWALI
KOHAT
CHICHIWATNI
SAHIWAL
PATTOKI
GUJRANWALA
JARANWALA
GUJRAT
RAWALPINDI
JHELUM
SIALKOT
MIRPUR
SHEKHUPURA
FJFC GHARO
SURJANI
ABBOTTABAD
MANSEHRA
CHARSADDA
PASNI
TURBAT
GWADAR
GALI JAGIR
MURREE
CHAKWAL CEMENT
SUNDER
PACKAGES
D.G.KHAN CEMENT
GILGIT
MUZAFFERABAD
SKARDU
KARACHI
QUETTA
PESHAWER
ISLAMABAD
LAHORE
SAIDU
JAMMU&KASHMIR
(Disputed Territory)
BIN QASIM
MULTAN
SRINAGAR
ATTOCK
BHAKKAR
OKARA
BAHAWALNAGAR
Zorlu
50MW
GREEN50MW
METRO50MW
GULAHMED 50MW SAPHIRE50MW
MAKWIND50MW MASTER50MW
ZEPHYR50MW
HOM 50MW SACHAL50MW WINDEAGLE50MW
ARBIANSEA50MW DAWOOD 50MW BECON50MW
FFC50MW
TENAGAGENERASI50MW
LUCKY 50MW
Kallar Kahar
40KW
24"x132 KM,KADANWARI-N.SHAH
SECTION(YEAR1994)
DADUKARCHAT(YEAR1992)
120KM DADU-KARCHA T(YEAR1997)
18"x21KMKHADEJI-
PAKLANDINTERLINK
18x18KM,LHFKOTRI
24x40KM BHIT-BAJARAPIPLINE (YEAR2002)
20"x386 KM,IRBPLOOPSOTHERTHAN
18"x504 KM,IRBPSUI-KAR .(YEAR 1977)
GASPIPELINE BY BHP
16"x558 KM,INDUSLEFTBANK
PIPELINE (YEAR1954)
24"x28.3KM, KUNAR-HQ3PIPLINE
16"x35KM,MIANO-KDN
(YEAR1984) PIPLINE
18"x40KM,PIRKOH-SUI
18"x129.5 KM,JCB-DAMBOLI
QPLSECTION(YEAR1994)
18"x34KM,SHKP-JCB
LOOPLINE(YEAR1998)
LOOPLINE(YEAR2009)
24x30KM,GOKART-ABEGUM
18"x KM, 18 DHADAR-GOKART
LOOPLINE(YEAR1996)
20"x30KM,SIBI-DADHAR
42"x249.5 KM
FO&HSDLINESFOTCO-ZOT
18/16PARCOMFM PIPELINE
8DIAMAZARANIGASPIPELINE-PPL
PIPELINEBY OMV (YEAR2001
16& 14TWO PIPELINE
TOFFC
12&10TWO PIPELINE
TOENGRO
16PSFLPIPELINE
10/12GASPIPELINE
12"x42KM,RS1- JCB
QPLSECTION(1983)
O G D C L
24x116KM, JAMSHORO-
PAKLANDLOOPLINEYEAR2005
30"x9KM,
BYPASSON 16ILBP
24"x81KMHQ2-TANDOADAM SECTION
20/10X12 KM ZAMZAMA
20IRBPDADU-SUI-ZAMZAMA
REVERSEGASTOSNGPL
18"x14KM,BYPASSOFQPL
LAIDINDINGRANALA(YEAR2004)
12x2KM LALPUR-AES
PSOPIPELINE
10x32KM LAILPUR -KAPCO
PSOPIPELINE
4/6PIPELINE
ENGRO
FFC-MM
FORFFBQL(YR1996-2002)
20X19KM SAWAN
24,24& 20x6KM SPUR
GASPIPELINE- OMV
6"x34.KM, PIPELINE 8 UEPL
8"x14.2 KM, PIPELINE UEPL
8"x11.5 KM, PIPELINE UEPL
LACHI-SHAKARDARA
24x200K BAJARA
KARACHIPIPLINE
LOOPLINE(YEAR1997)
20"x30KM, KOLPUR-QTA
24x132.33 KM SAWAN-QAADIRPUR
PIPELINE
8PIPELINE-SPUD
6x9KM, PIPELINE UEPL
6 DIA
6 DIA
4 DIA
6 DIA
6x2KM
10 DIA
6 DIA
6x2KM
12 DIA
6 DIA
6X37KM,BOBI- CHAKDIM-5
LOOPLINE(YEAR2007)
6"x4.5 KM,UEPLPIPELINE
16"ILBPPIPELINE
24X132KM KARCHAT-
KARACHILOOPLINE(YEAR2007)
12X44KM,BOBI- TANDOADAM
4 DIA
8DIA
MVA LOOPLINE(YEAR2005)
18"x18KM,ABEGUM-MACH
BADHRATOBHITPIPELINE-Eni
10X23KM
24DIALINEBANDADAUD-
SHAHTONOWSHERA
QPLSECTION(FUTURE PLAN)
20x280KMN.SHAH-
KARSEC(YEAR1994-2000)
18"x34KM,SHKP-JCB
18"x31KM,DINGRA-SIBI
12"x303 KM,JCB-QUETTA
PIPELINE (YEAR1983)
12"x64KM,PROPOSEDZARGHUNGASPIPELINE
LOOPLINE(YEAR2006)
24X64KM BAJARA-KARCHA T
6"x7KM, PIPELINE UEPL
6X24KM, PIPELINE UEPL
6"x9.5KM, UEPLPIPELINE
CONDENSATEPIPELINE-BHP
15KM SAWAN-KADANWARI
24"x15KM,MASSU-HQ3
6x9KMS (PEL)
4x13KMS (PEL)
4x7KMS (P EL)
16x35.56 KM PIPELINE
8x19.6 KMS (PEL)
10x2.5KMS (R-2 SNGPL)
12x67KM,MEHAR-
TH.MUHABBATPIPELINE
6x23KMLATIF-1 GASPIPELINE- OMV
8"x85KM,JHAL-NUTTALPIPELINE
16"x58.75 ILBSUI-
HASSANR.F .TOSNGPL
TAJJAL-1-SAWAN CPP
8X19.12 KM
12"x52KM
8x15KM
ACPLPIPLINE
(BGFIP)NARI-HYDERABAD (YEAR1988)
18"x108 KM,BADINPIPLINE
LOOPLINE(YEAR2007)
18"x15KM,MACH MVA-KOLPURMVA
24"x120KM, PLANNEDSKP-
TH.MUHABBATPIPELINE
4 x 1 2 K M S 8x8Kms (R1-R2)
10x19.7 LATIFNORTH-1GASPIPELINE- OMV
8x0.8 kms
10X78KMSGURGURI-KOHA T
GASPIPELINE
Hycarbex
10
Cv24
8
8
LATIFNORTH-SAWANCPP
16X47KM
SKPBY HYCARBEX
8"x0.8 KM,HASEEB-
LOOPLINE(YEAR2011)
102KM PROPOSEDHQ2-NARA-
SAWAN PIPELINE FORLNG
55KMKHEWARI-HQ2
24KMKHEWARI-NARA
12 35 SINJHORO-LUNDO X KM, PIPELINE
(YEAR2012)
24X33KM,TANDOADAM MASSU LOOPLINE
PIPELINE
6X23KM SUJAWAL-GULARCHI
6X16KM NUR-GULARCHIPIPELINE
17KM LNGLINE
BY IMPORTER
17KM LNGLINEBY SSGC
20x31KM ACPL-SURJANI
24 DIA
10DIA
42
10X9KMSMAKORI-LACHI
8x12KMS
21KMPAKLANDKATHORE
PAKLANDLINK
MANZALAI PLANT MANZALAI CPE
PARCO
ARL
BOSICAR
ORIENTBALLOKI
229MW
ATLAS
225MW
SAMUNDARI
150MW
110MW
TPS GUDDU
SAIFPOWER
229MW
NISHAT
200MW
SHAHUWALA
150MW
Satiana Rd.
200MW
51MW
NAUDERO
232MW
KARKEY
PIRANGHAIB
192MW
GULF
62MW
INDEPENDED
200MW
ENGRO POWER
227MW
KHANKHWAR
122MW
UAEG.T.
240MW
UAE G.T.
DUBERKHWAR
HUBCONAROWAL
220W
HALMORE
NISHATCHUNIAN
200MW
80MW
225MW
LIBERTYPOWER
200 MW
JINNAH
101MW
96MW
NANDIPUR
425MW
BESTWAY
200MW
750MW
GUDDU
GULIST AN
CHICHOKI
ALLAIKHAWAR
121MW
KURRAM TANGI
83.4 MW
325MW
200MW
586MW
UCH-II
404 MW
SHAHKOT
200MW
NEW BONG
84MW
100MW
KOTLI
120MW
KANDRA
100MW
GULPUR
SHAHPUR
150MW
PATRIND
147MW
INTEGRA TED
405MW
KAROT
720MW
BUNJI
4500MW
TARBELA
3478MW
1000MW
WARSAK
243MW
GHAZIBROTHA
1450MW
MANGLA
CHASHMA
184MW
LAKHRA
JAM SHORO
850MW
KOTRI
174MW
QUETA
35MW
TPSMUZAFFARGARH
1350MW
GUDDU
1655MW
150MW
195MW
GTPSFAISALABAD
NGPSMULTAN
244MW
SPSFAISALABAD
132MW
SHAHDRA
55MW
KOHINOOR
131MW
KAPCO
1638MW
AESLALPIR
362MW
HUBCO
1292MW
365MW
SOUTHERN
136MW
AESPAKGEN
HABIBULLAH
140MW
UCH POWER
450MW
ROUSCH
FAUJIKABIRWALA
157MW
125MW
SABAHPOWER
JAPAN POWER
135MW
235MW
JAGRAN
325MW
TNBLIBERTY
30MW
MALAKAND-III
ALTERN
29MW
81MW
AGL
165MW
ALSTOM
135MW
GEPower
150MW
FOUNDATION
185MW
137
126MW
TAPAL
136MW
GULAHMED
PASNI
17MW
RASUL
22MW
SHADIWAL
14MW
NANDIPUR
14MW
RENALA
1MW
CHITRAL
1MW
PANJGUR
KURRAM GARHI
39MW
4MW
13MW
1260MW
BQPS-1
225MW
SAPPHIRE
59MW
SHAHDRA
528MW
WALTER
BQPS-2
GRANGEHOLDING
STAR
134MW
205MW
RESHMA
163MW
201.30MW
TAUNSA
120MW
70MW
TAPAL
155.55MW
RUBA
SIALKOT
65MW
130 MW
SEHRA
KOHALA
1100MW
500MW
CHAKOTIHATTIAN
4320MW
130MW
SUKIKINARI
840MW
NEELUM-JHELUM
969MW
KAIGHA
548MW
DASSU
MADIAN
157MW
ASRIT -KEDAM
215MW
MATIL TANT
84MW GABRAL-KALAM
137MW
GOLENGOL
106MW
MUNDADAM
LAWAI
6605MW
CHASHMA
CHASNUPP-2
70MW
KEYALKHWAR
SPATGAH
496MW
PHANDER
80MW
NALTAR-I
18MW
DIAMERBASHA HARPO
7100MW
33MW
28MW
BASHO
SATPARA
17MW
PALASVALLEY
665MW
72MW
PATAN
2800MW
THAKOT
2800MW
HARIGHEL
53MW
GOMALZAM
17 MW
DAVIS
340MW
CHASNUPP-3
1200MW
SINDHENGROTHARCOAL
340MW
JABBAN
CHASNUPP-4
22MW
SHARMI
115MW
DARGAI
20MW
TARBELAEXT.
960MW
BARA
TANK ZAM
25.5MW
NAULONG
4.4MW
NAI GAJ
4.2MW
WINDER
0.3MW
HINGOL
3MW
5.8MW
GEIP
590 MW
MAHI
AZADPATTAN
640 MW
Directorate General of
Petroleum Concessions
10
Ministry of Petroleum & Natural Resources, Government of Pakistan
Policy Focus
Oil and gas are major components of Pakistan's
energy mix meeting over 80% of energy needs
(Fig.1) and therefore, successive Governments, since
independence have attached high priority to this sector.
The Governments have adopted consistent policies
aimed at promoting foreign investment in upstream
petroleum sector with the view to exploit indigenous
hydrocarbon resources in an optimal manner for the
beneft of the nation while providing adequate return
to the investors. Pakistan's commercially exploitable
energy resources consist of natural gas, oil, coal and
hydropower. The country's current yearly primary
energy supply is about 66.02 million tonnes of
oil equivalent.
Investment Protection
Foreign investment is fully protected under foreign
investment protection law of 1976 passed by the
Parliament, under which the Government guarantees
full safeguard to foreign investments in Pakistan. The
Governments have been providing policy package
of liberal incentives to enhance exploration activities
in the country, the latest of which was introduced
in 2012.
Onshore Areas
The frst exploration well in the undivided British India
which is now Pakistan, was drilled in 1868 near an oil
seep at Kundal in Punjab province by Punjab Oriental
State. Later on, wells sunk to about 150 m near
Kathan oil seeps produced 800,000 gallons of oil
between 1886 and 1892. But the frst commercial oil
discovery was made in 1915 at Khaur (4.31 MMbo),
in Punjab province by Attock Oil Company (AOC).
In 1952, Pakistan Petroleum Limited (PPL) made the
largest and most signifcant gas discovery to date in
Pakistan at Sui. The original recoverable gas reserves
at Sui were about 13 Tcf. The discovery of Sui Gas
Field was the frst major milestone in the search for
hydrocarbons in Pakistan.
11
Opportunities in Pakistan's Upstream Oil & Gas Sector
Later, other signifcant discoveries of natural gas were
made at Uch (909 MMboe) by PPL in 1955, Mari (1.3
Bboe) by ESSO in 1957 and Kandhkot (299 MMboe)
by PPL in 1959. Meyal (95 MMboe) Oil feld was
discovered in 1968 in Potwar by POL. OGDCL made
gas/condensate discovery in 1976 at Dhodak (95
MMboe) in Punjab. Two years later, PPL discovered
Adhi Oil and Gas Field (146 MMboe) in Potwar.
This was the frst commercial oil/gas discovery in
the rocks of Paleozoic age in east Potwar area. In
1981, Union Texas Pakistan (UTP) discovered oil at
Khaskeli (14 MMbo) in the Lower Indus Basin (Sindh)
in early Cretaceous Lower Goru sands. After Sui, the
discovery of oil in the Lower Indus Basin was the
second milestone in the search for hydrocarbons in
Pakistan. This led to a boom in exploration activity
in the Lower Indus Basin, resulting in several
oil and gas discoveries.
OGDCL made a discovery in the Middle Indus
Basin at Qadirpur (4.5 Tcf) in 1989. Following
this, a number of discoveries by Eni and OMV in
partnership with PPL, OGDCL and others were
made in the same basin. In the Kirthar foldbelt the
frst commercial discovery was made by Eni in 1998
followed by another discovery by BHP in the same
year. In Kohat Basin the frst oil and gas discovery
was made in 1999 by OGDCL.
Thereafter, fve oil and gas discoveries were made
by MOL of Hungary in partnership with PPL, OGDCL
and POL and two more by OGDCL. In 2009, POGC
and PPL drilled Rehman-01 well in Kirthar foldbelt
resulting in the countrys frst tight sand discovery from
Upper Pab sandstone. Subsequent to the Petroleum
Policy 2009 and the bidding round, discoveries were
made in 2013 by PPL and Eni.
Application of modern technology has resulted in
several discoveries and confdently point towards
additional exploration potential in all basins of
the country.
Foreign investment is fully protected under
foreign investment protection law of 1976
passed by the Parliament, under which the
Government guarantees full safeguard to
foreign investments in Pakistan.
12
Ministry of Petroleum & Natural Resources, Government of Pakistan
Offshore Areas
The offshore region of Pakistan consists of two basins:
Indus and Makran. The Indus basin constitutes the
second largest delta/fan system in the world after the
Bay of Bengal. This is analogous to many producing
basins of the world in geological terms.
Exploration in the Indus Offshore dates back to 1961
when Sun Oil Company (USA) carried out seismic
surveys and based on this, drilled three near-shore
wells. Subsequently, Wintershall (Germany) drilled three
wells. Husky (USA) also drilled one well. Some of these
wells encountered high pressures in Miocene Section,
remaining short of target objectives, although gas shows
and non-commercial gas quantities were reported in
most wells. Occidental (USA), drilled a well Sadaf-1
(1989) after conducting modern seismic survey and
TOTAL drilled Pak G-2 up to a depth of 4,750 meters
in the water depth of 2,713m during 2004, targeting
an Eocene carbonate buildup proving the presence of
good quality Eocene carbonate reservoir. In the Makran
basin PPL drilled Pasni X-1 in 2006 but remained short
of the target objective. Subsequently, Shell drilled Anne
-X1 well in deep water (1300m) to a depth of 3,250m
during 2007. Later, Eni drilled Shark-01 well upto depth
of 3500m in early 2010.
Pakistan offshore exploration has a challenging
history and a promising future. Given present-day
technology, the basins hold considerable potential
for hydrocarbon discoveries. Currently, Government
Holdings Pakistan Limited has Production Sharing
Agreements in 16 offshore licenses with Eni,
OGDCL, PPL, UEPL, Niko Resources and PEL in
the offshore Indus.
Offshore Makran has been under-explored with only
four wells drilled including one by PPL. A detailed
evaluation with application of modern technology,
exploration can lead to success in the offshore
Makran as well.
Shale Exploitation
Pakistan has a big potential and is considered a good
candidate for shale gas exploration and production.
According to US Energy Information Administration
(US EIA) estimates, Pakistan has technically
recoverable shale gas reserves of 105 Tcf. In addition
southern Pakistan is estimated to hold shale oil
reserves of over 9 billion barrels. Independent shale
specifc studies carried out by PPL independently
and in collaboration with Eni in Pakistan also
support presence of signifcant hydrocarbon bearing
shales. The Government is developing an Interim
Shale Gas/Oil Framework which would provide
special incentives to technically and fnancially
sound companies interested in undertaking shale
Pilots Projects.
13
Opportunities in Pakistan's Upstream Oil & Gas Sector
Pakistan Basin Study
Pakistan Basin Study was completed in 2009
covering all the sedimentary basins of the country.
The objective of the study was to get a consistent
countrywide assessment of the main prospective
petroleum play fairways.

Assessment of petroleum plays and their component
elements recognized in these basins comprises
reservoirs from the Infracambrian to Pleistocene age,
as under:
Kohat-Potwar Basin
The basin is located in Northern Pakistan north of
Sargodha High. Proven and potentially viable plays
range in age from Infra-Cambrian to Miocene.
Punjab Platform Basin
The Punjab Platform is separated from Upper Indus
Basin by Sargodha High to the north and Mari-
Kandhkot High to the south and Sulaiman Foredeep
to the west. Proven and potentially viable plays range
in age from Infra-Cambrian to Eocene.

Lower Indus / Middle Indus Basin
The Lower Indus / Middle Indus basin, located to
the south of Mari-Kandhkot High and to the east of
Kirthar Foldbelt. Proven and potentially viable plays
range in age from Pre-Cambrian to recent age.

Kirthar Foldbelt
Kirthar Foldbelt is the north-south trending tectonic
feature. It includes Kirthar Foldbelt, Kirthar Foredeep
and southern Axial Belt. Proven or potentially viable
plays range in age from Triassic to recent age.
Sulaiman Foldbelt
Sulaiman Foldbelt is one of the most prospective
regions of Pakistan, which includes Sulaiman
Foldbelt, Sulaiman Foredeep and northern part of
Axial Belt. Proven and potentially viable plays range
in age from Middle Jurassic to Miocene.
Balochistan Basin
Balochistan Basin is the least explored basin of
Pakistan, having potentially viable plays ranging in
age from Paleocene to Oligocene.
Indus Offshore Basin
The Indus Fan is bounded by Murray Ridge on the
west. Potentially viable plays ranging in age from
Lower Eocene- Middle Miocene to Oligocene-
Neogene.
Makran Offshore Basin
This basin is located along the Makran coast of
Pakistan to the west of Murray Ridge. Potentially
viable plays ranging in age from Middle Upper
Miocene to Pleistocene.
Bright Past & Brighter Future
Pakistan's sedimentary basins continue to hold
promise for new exciting discoveries particularly in
offshore, which are relatively under-explored and have
become main areas of focus after improved policy
incentives based on production sharing agreement.
A commercial discovery in offshore area is likely to
bolster exploration activities transforming petroleum
landscape of Pakistan in major way.
In order to remain attractive in highly competitive
global exploration market, the Government has
been making progressive changes in the investment
policies and regulations at regular intervals. With frst
E&P policy of 1991, Pakistan caught the attention of
international petroleum industry. Further subsequent
PAKISTAN'S HYDROCARBON BASINS
14
Ministry of Petroleum & Natural Resources, Government of Pakistan
improvements through policies of 1993, 1994, 1997
made Pakistan an attractive location for upstream
investment. Pakistan over hauled the policy in
2001, 2007, 2009 and then in 2012 . On account
of combination of factors such as improved returns
on investment based on new fscal incentives,
transparent and open regulatory environment,
induction of market reforms and technological
advances, the Government expects positive infuence
on local upstream market and hopes that forward
momentum will be maintained.
Total 850 exploratory wells (since inception) have
been drilled till September 2013, (834 onshore and
16 offshore) in the sedimentary basins of Pakistan
covering 827,268 sq. km. upto September 2012,
271 oil and gas felds (62 oil and 209 gas and gas/
condensate) have been made in various basins of
Pakistan which gives drilling density of 2.44 wells
per 1,000 sq. km and success rate of 1:3.2(Fig 2).
Despite lower drilling density as compared to global
drilling density of 10 wells per 1,000 sq. km, the
success rate of Pakistan compares favourably with
international success rate of 1:10.
The total recoverable reserves of natural gas and oil
are estimated at 53.354 trillion cubic feet (TCF) and
1004.54 million barrels respectively. Allowing for
cumulative production, the remaining reserves are
285.677 Million barrels oil (Fig. 3) and 23.180 TCF gas
(Fig 4). Large areas of Pakistan's petroliferous basins
still remain geological frontier and holds promise
for the future in view of the multiple habitats for
petroleum generation and accumulation. Independent
international studies indicate an oil and gas potential
that is many times more than these proven reserves.
Oil and gas production has registered a steady
increase over the last few years on the back of
successful exploratory efforts of the companies.
The production of oil during 2012-13 was 76,277
barrels per day (Fig. 5) while gas production reached
a record level of 4.259 billion cubic feet per day in
2011-12 (Fig. 6).
Drilling activity has also seen an upsurge, which is
another measure of the success of the Government's
policy initiatives. Total 97 wells (35 exploration and 62
development) were drilled during 2012-13 (Fig.7).
An assessment of Yet-to-Find reserves at an unrisked value for all of the basins studied suggests 3585
MMBO and 66.26 TCF gas.
15
Opportunities in Pakistan's Upstream Oil & Gas Sector
4500
4000
3500
3000
2500
2000
1500
1000
500
0
80000
70000
60000
50000
40000
30000
20000
10000
0
2002-03 2008-09 2005-06 2011-12 2003-04 2009-10 2006-07 2012-13 2004-05 2010-11 2007-08
2002-03 2008-09 2005-06 2011-12 2003-04 2009-10 2006-07 2012-13 2004-05 2010-11 2007-08
16
Ministry of Petroleum & Natural Resources, Government of Pakistan
During the last three fscal years, 32 concession
agreements were signed. These agreements covered
an area of almost 67,864.09 sq. km and attracted a
fnancial commitment of at least US $ 169.56 million
during exploration phase.
Pakistan remains an active and prospective
exploration country. Signifcant fnds continue to be
made in the existing producing areas as well as in
less-explored regions. The proven rate of exploration
success and a sizeable domestic oil and gas market
present promising investment opportunities.
Pakistan needs to explore, develop and
exploit its petroleum resources to achieve greater
self-reliance in energy supplies. Attractive terms
and conditions for investors are, therefore, being
offered by the Government to accelerate the
exploration and development of oil and gas. The
basic law that regulates the upstream sector is
the Regulation of Mines and Oil Fields and Mineral
Development (Government Control) Act, 1948.
Current legal framework for upstream sector is
given in Fig 8.
The upstream activities in the oil and gas sector are
administered and regulated through the Directorate
General of Petroleum Concessions (DGPC) of Policy
Wing, Ministry of Petroleum and Natural Resources.
Policy Wing has three more directorates namely,
Directorate General of Gas (DG Gas), Directorate
General of Oil (DG Oil) and Directorate General
Special Projects (DGSP) to provide support to the
Government in formulation of policies for midstream
and downstream oil and gas sector. With the
formation of Oil and Gas Regulatory Authority
(OGRA), midstream and down-stream oil and gas
sectors are regulated by OGRA.
Oil and gas production has registered
a steady increase over the last few
years on the back of successful
exploratory efforts of the companies.
17
Opportunities in Pakistan's Upstream Oil & Gas Sector
LEGAL FRAMEWORK
Laws
Mines Act 1923
Regulation of Mines and Oilfelds and Mineral Development (Government Control)
Act 1948, including Amendment of 1976
Territorial Waters and Maritime Zones Act 1976
Pakistan Environmental Protection Ordinance 1997
Income Tax Ordinance 2001 (Fifth Schedule)
Rules & Regulations
Pakistan Petroleum (Production) Rules 1949
Oil and Gas (Safety in Drilling & Development) Regulations 1974
Pakistan Petroleum (Exploration & Production) Rules 1986
Pakistan Petroleum (Exploration & Production) Rules 2001
Pakistan Offshore Petroleum (Exploration & Production) Rules 2003
Pakistan Onshore Petroleum (Exploration & Production) Rules 2009
Third Party Access Rules 2011
Pakistan Onshore Petroleum (Exploration & Production) Rules 2013
Policies
Petroleum (Exploration & Production) Policies 1994 to 2012
Low BTU Gas Pricing Policy 2012
Tight Gas (Exploration & Production) Policy 2011
Marginal/ Stranded Gas Fields: Gas Pricing & Criteria and Guidelines 2013
Upstream activities in the oil and gas sector are administered and regulated through the
Directorate General of Petroleum Concessions (DGPC) of Policy Wing, Ministry of Petroleum
and Natural Resources.
18
Ministry of Petroleum & Natural Resources, Government of Pakistan
Zoning
The country has been divided into zones based
on their relative prospectivity and geological risk.
Onshore areas are sub-divided in three zones;
ZONE-I high risk - high cost areas, ZONE-II medium
risk - high to medium cost areas and ZONE-III low
risk-low cost areas. Offshore areas are also sub-
divided in three zones; Shallow, Deep and Ultra
Deep. (Fig. 9). Separate incentives have now been
provided for the onshore
and offshore areas of the country.
Concession Award Process
Onshore and Offshore E&P rights will be awarded via
three distinct procedures:
The granting of Petroleum Exploration Licences for
entering into PCA or PSA in relation to onshore
and offshore blocks offered through competitive
bidding.
The granting of Petroleum Exploration Licences
for entering into PCA or PSA in relation to onshore
and offshore blocks without competitive bidding
to Strategic Partner Companies on Government to
Government basis.
The granting of non-exclusive Reconnaissance
Permits for undertaking studies and multi-client
surveys after direct negotiation.
Invitation to Bid
DGPC issues an Invitation to Bid in national
newspapers & the MPNR website. Invitation to Bid
may cover the nominated blocks and such additional
blocks as DGPC may deem appropriate. An Invitation
to Bid will remain valid for at least 60 days and all
companies providing the requisite information would
be eligible to contest Invitation to Bid.
Within 15 days of bid opening date, the bidders
offering the equal number of the highest Work Units
will be asked to re-bid the Work Units and the bidder
offering the higher Work Units in the re-bidding will
be declared the winner, provided however, bidders
cannot offer Work Units lower than the one previously
offered.
Execution of Agreement
DGPC will make every effort to conclude and sign
a Petroleum Concession Agreement or Production
Sharing Agreement as the case may be strictly based
on the model provided with the bid documents.
Gas Market
E&P companies operating in Pakistan will be
allowed to construct and operate pipelines for
local requirements and for exports of their share of
petroleum which shall be regulated by the regulator
concerned in accordance with applicable laws, rules,
regulations and the policy based on an open-access
(third party) regime. E&P Companies constructing
such pipelines would be allowed priority access
based on a frm utilization plan.

Whether a connecting pipeline from outlet fange to
the nearest transmission system, is constructed and
operated by a producer, a third party or a government
nominated entity, the producer will be required to
confrm the requisite gas supply volumes, pressures,
reserves and other technical parameters on standard
supply term contract basis for a period to be agreed
between the parties.
The basis of the tariff allowed and paid monthly
for delivery from outlet fange into the transmission
system will be determined by the regulator based
upon a rate of return on equity basis at the rate of
12% with the capital cost being amortized over a
minimum of 15 years.
Allowable costs will include operating cost and
interest payable on the initial capital over the minimum
15 year amortization period.
For more detailed information, please refer to
Petroleum (Exploration and Production) Policy 2012
by visiting: http://www.mpnr.gov.pk/gop/index.php?
q=aHR0cDovLzE5Mi4xNjguNzAuMTM2L21wbnIvZn
JtRGV0YWlscy5hc3B4P2lkPTImYW1wO29wdD1wb
2xpY2llcw%3D%3D
Upstream Sector
Procedural and
Regulatory Measures
19
Opportunities in Pakistan's Upstream Oil & Gas Sector
The main features of the package for the three
onshore zones which is available for all new awards to
the E&P Companies, are enumerated in the following
paragraphs:
Royalties
Royalty is payable @ 12.5% of the value of petroleum
produced and saved at the feld gate.
Corporate Income Tax
Corporate income tax is capped at 40% of profts and
gains with royalty payments allowed as expense item.
Prospectivity Zonation
Onshore area is divided into three prospectivity zones
based on risk and investment as follows:
State And Local Companies' Mandatory
Participation
In case of Joint ventures with foreign companies, local
E&P companies including GHPL shall have working
interest on full participation, as mentioned below:
Production Bonuses
Production Bonuses are payable as follows:
Work Unit Concept
For the purpose of providing fexibility to the contracts
in discharge of work obligations under the petroleum
concession agreements, a new concept of work units
has been developed which enables the petroleum
right holder to fnalize the Work programmes based
on the best technical judgment as compared to the
previous system of frm obligation of seismic coverage
and number of wells.
Import Duties And Taxes
In accordance with SRO 678(I)/2004 dated 7th August,
2004, import duties and sales tax are payable @ 5%
on the import of equipment not locally manufactured.
The import duty is 10% for items locally manufactured
other than wellhead on which import duty is 15%.
Moreover, no import duties, sales tax or license fees
is applicable on machinery, equipment and materials
etc. imported or exported by the companies providing
technical services to petroleum exploration and
production companies.
Training Contributions
Training fee is applicable as follows:
US$ 25,000 per year - Exploration phase
US$50,000 per year - Development and
Production Phase
Social Welfare Contributions
The following minimum expenditure shall be incurred
on welfare projects:
Onshore Package
During Exploration USD 25,000 Per License Year
Stage Until Commercial
Production
During Commercial Amount/Lease Year (USD)
Production
Phase (BOE/d)
Less Than 2,000 50,000 (Zones O & I); 37,500
(Zones 11 & 111)
2,000 - 5000 100,000 (Zones O & I); 75,000
(Zones 11 & 111)
5,000 - 10,000 200,000 (Zones O & I); 150,000
(Zones 11 & 111)

10,000 - 50,000 400,000 (Zones O & I); 300,000
(Zones 11 & 111)
More Than 50,000 700,000 (Zones O & I); 525,000
(Zones 11 & 111)
20
Ministry of Petroleum & Natural Resources, Government of Pakistan
Windfall Levy
Windfall Levy (WLO) will be applicable on crude oil
and condensate using the following formula:
WLO = 0.4 x (M-R) x (P-B)
Where:
WLO - Windfall Levy on crude oil and condensate;
M - Net production (petroleum produced & saved);
R - Royalty;
P - Market Price of crude oil and condensate
B Base Price, which will be as under:
a. The base price for crude oil and condensate will
be USD 40 per bbl.
b. This base price for crude and condensate will
escalate each calendar year by USD 0.5 per
barrel starting from the date of frst commercial
production in contract area.
All the beneft of windfall levy may be equally divided
between the Federal Government and Provincial
Government concerned. The ceiling would be
reviewed as and when pricing dynamics signifcantly
change in the international market.
5. 10% of the royalty will be utilized in the district
where oil and gas is produced for infrastructure
development.
6. For sale of natural gas to parties other than
GOP, Windfall Levy (WLG) will be applicable on
the difference between the applicable GOP
Zone price and the 3rd party sale price using
the following formula:
WLG = 0 .4 x (PG-BR) x V
Where:
WLG - Windfall Levy on share of natural gas;
PG - Third Party Sale Price of natural gas;
BR - Base Price;
V - Volume of gas sold to third party excluding
royalty.
The Base Price will be the applicable Zone price
for sale to GOP as outlined in section IV (10) below.
Where the 3rd party sale price of gas is less or equal
to the base price, the windfall shall be zero. The
windfall levy shall not apply on sales of natural gas
made to Government of Pakistan and the Provincial
Government.
Oil, Gas, Lpg And Condensate Producer Price
Crude Oil
The Producer Policy Price for crude oil delivered at
the nearest refnery gate shall be equal to C&F price
of a comparable crude oil or a basket of Arabian/
Persian Gulf crude oils (Reference Crude or RC) plus
or minus a quality differential between the RC and
the local crude oil. No other adjustment or discount
will apply other than Windfall Levy. C&F price will
be arrived at on the basis of FOB price of imported
crude oils into Pakistan plus freight on AFRA, which
is deemed chartered rate.
Condensate
The Producer Policy Price for condensate will be
the FOB price of internationally quoted comparable
condensate delivered at the nearest refnery gate plus
or minus a quality yield differential, based on the value
in the Arabian Gulf spot products market of the crude
oil/condensate. No other adjustment or discount will
apply other than Windfall Levy.
Liquefed Petroleum Gas
For new projects, the LPG producer price will be a
deregulated subject.
Gas Pricing
The price for Associated or Non Associated Gas
will be indexed to the C&F price of a basket of
Arabian/Persian crude oil import in Pakistan during
the frst six months period of the seven months
period immediately preceding the relevant price
notifcation period (import Basket) as published in an
internationally recognized publication acceptable to
the parties for various zones.
C&F Price will be arrived at on the basis of FOB price
of imported crude oils into Pakistan plus freight on
AFRA, which is deemed chartered rates.
The RCP ceiling of USD 110/barrel would be reviewed
after every fve years or as and when the pricing
dynamics signifcantly change in the international
market, as provided in the applicable rules.
Transmission Tariff
E & P companies are allowed transmission tariff for
the gas pipeline connecting the feld gate to the main
transmission system, if such system is constructed
and operated by them.
Exploration Period
Exploration period consists of an initial term of 5 years
comprising Phase-I of three years and Phase-II of two
years together with two subsequent renewals of one
year each, for a total period of 7 years.
Retention Period
A maximum retention period of upto 5 years is allowed
on a case by case basis to enable the companies
21
Opportunities in Pakistan's Upstream Oil & Gas Sector
to evaluate commercial aspects of the discovery
and to make market arrangements for disposal of
discovered gas.
Total Lease Term
Total term of the lease is up to 25 years plus fve
years renewal.
Relinquishments
Maximum 2,500 S.Km with subsequent progressive
area relinquishment of 30% of the original area after
Phase-I of initial term, 20% of the remaining area
after Phase-II of the initial term and 10% of the
remaining area on or before the start of second one
year renewal.
22
Ministry of Petroleum & Natural Resources, Government of Pakistan
Offshore Package

ROYALTIES
Following Royalty schedule will be applied:
Corporate Income Tax
Corporate income tax is capped at 40% of profts and
gains with royalty payments allowed as tax expense
item.
Depreciation
The following depreciation rates will apply:
Carry forward of any unabsorbed depreciation until
such depreciation is fully absorbed.
Direct Government Participation
A sliding scale production sharing arrangement will
be used instead of direct government participation.
Production Sharing
The production sharing agreement will be executed
by the Contractor with GHPL who will be granted
the Exploration Licence and Development and
Production Lease. The Contractor will therefore
initially receive the proft oil and proft gas shares
and will be responsible for the management of the
production sharing agreements.

Cost Limit
Cost limit is 85% including the royalty of 12.5%. The
Contractor can recover 100% of the costs from up to
a maximum of 85% of the gross revenues.
Production Bonuses
Production Bonuses will be as outlined in the table
below.
Work Unit Concept
For the purpose of providing fexibility to the contracts
in discharge of work obligations under the production
sharing agreements, work units will be used instead
of frm obligation of seismic coverage of wells.
Marine Research Fee
A marine research and coastal area development fee
will be applicable as per the following schedule:
Training Contributions
Training fee is applicable as follows:
US$ 50,000 per year during Exploration phase
US$250,000 per year during Development and
Production phase
Gas Transmission Pipeline
The frst pipeline connecting a feld to onshore gas
transmission system is allowed as cost recoverable,
if such system is constructed and operated by the E
& P Companies.
23
Opportunities in Pakistan's Upstream Oil & Gas Sector
Import Duties And Taxes
As is also applicable for onshore areas, import duties
and taxes for areas located in offshore is determined
in accordance with SRO 678(I)/2004, dated 7th
August 2004.
Exploration Period
Exploration period consists of an initial term of 5 years
and two subsequent renewals of one -years each, for
a total exploration period of 7 years.
Retention Period
In case of Gas discovery a maximum retention period
of upto 10 years is allowed on a case by case basis
to enable the companies to evaluate commercial
aspects of the discovery and to make market
arrangements for disposal of discovered gas.
Total Lease Term
Initial term of 25 years based on production profle
plus one possible renewal of 5 years.
Policy For Grant Of Lease After Expiry Of
Lease Term
1. For grant of petroleum rights after the expiry of
lease period, DGPC can renew the lease term
for another fve years term in case the existing
lease holder agrees to pay an amount equivalent
to 15% of the wellhead value to the Government
otherwise DGPC will invite bids using the call for
bids one year before the end of the lease period
from pre-qualifed companies seeking to have a
petroleum right over the lease area, in relation to
any producing feld for an additional ten years. The
bids will be evaluated on the basis of Signature
Bonus, which would be spent for social welfare of
the area in which the feld is located.
2. Each bidder(s) shall provide a bid bond of 10% of
the offered signature bonus at the time of bidding.
3. DGPC shall be under no obligation to grant any
extension.
24
Ministry of Petroleum & Natural Resources, Government of Pakistan
Low BTU Gas is gas which does not contain methane
as its primary constituent and has the gross heating
value of less than 450 BTU/ SCFT.
The Low BTU Gas Pricing Policy, 2012 is aimed at
achieving the following principal objectives.
1. Fast track development and production of gas
from the existing discovered Low BTU Gas
reservoirs which have remained dormant due to
poor economics.
2. Opportunity for the investors for exploration and
production of Low BTU Gas which would help
increase the power generation capacity of the
country and reduce the energy defcit.
3. Improving balance of payments position by
reducing the need for import of other fuels such
as LNG and Fuel Oil requiring Massive foreign
exchange outfow.
4. Producing additional power at affordable tariff
for the consumers by using indigenous gas
resources.
5. Boosting local manufacturing of equipments for
production of Low BTU Gas.
6. Increasing security of energy supplies.
For the sale of Low BTU Gas to parties other than
government, windfall levy equal to 25% amount will
be paid to government on the difference between
the applicable Low BTU Gas policy price& its sale to
third party.
Windfall Levy
For the sale of Low BTU Gas to parties other than
government, windfall levy equal to 25% amount will
be paid to government on the difference between
the applicable Low BTU Gas policy price& its sale to
third party.
Import duties and other levies / taxes
As per applicable SRO.
Remittance of Proceeds Abroad
The provisions of Petroleum (Exploration & Production)
Policy, 2012 shall be applicable.
Production Bonus
The frst production bonus applicable to the grant of
a Development and Production lease of a Low BTU
Gas feld shall be waived.
Low BTU Gas
25
Opportunities in Pakistan's Upstream Oil & Gas Sector
Tight gas refers to gas that is trapped in unusually
impermeable hard rock or in a sandstone or limestone
formation that is unusually impermeable and non-
porous.
Promulgation of the Tight Gas (Exploration &
Production) Policy 2011 is based on achievement of
the following principle national objectives.
1. Start of fast track development and production of
gas from the existing tight gas reservoirs that are
not being produced due to non-commerciality.
2. To open new frontiers for exploration of tight gas
which would help increase the production level for
reducing the energy defcit.
3. Raising additional government revenues.
4. Improving balance of payment position by
reducing the need for import of alternative fuels
(LNG/Fuel Oil) which requires massive foreign
exchange.
5. Reducing recourse to sovereign debts by saving
foreign currency.
6. Keeping the local gas prices at affordable level to
the consumers by producing cheaper gas vis--
vis imports.
7. Generating employment for the nationals.
8. Boosting local manufacturing industry for
supply of equipments for production of tight
gas by international collaboration and transfer of
technology.
9. Increase dependability and security of supply and
its sustained availability.
Gas Pricing
In order to exploit Tight Gas Reserves, 40% premium
would be given over the respective zonal price of
Petroleum Policy 2009.
However in order to encourage the companies to
fast track development & production of tight gas, an
additional 10% premium would be given for those
volumes that are brought into production within 2
years of announcement of this policy. For example if
a feld A produces 300MMCFD with in two years of
the announcement of this Policy, it would be entitled
to 50% premium for 300 MMCFD gas only. Any
subsequent addition in volumes after expiry of the two
years period would be entitled to 40% premium only.

The working interest owners shall have the right to
sell the gas to third parties within Pakistan at mutually
negotiated prices between the Seller and the Buyer.
Royalty
Royalty shall be payable as per Petroleum Policy
2009.
Tax Loss Carry Forward
Operating loss can be carried forward to a period not
exceeding ffteen (15) years.
Abandonment Costs
As per Finance Act 2010.
Windfall levy
No windfall levy will be applicable to the tight gas
production.
Tight Gas
26
Ministry of Petroleum & Natural Resources, Government of Pakistan
Additional fnancial incentives are required for
E&P companies to attract them in developing and
producing from the Marginal Fields discoveries
making their investment economically viable to
accelerate the E&P activities in the country.
The purpose of these Guidelines is to establish
policies, procedures and pricing mechanism to
accelerate the development and production from
Marginal Field discoveries and from re-development
efforts from such discoveries in Pakistan.
Applicability & Effect of the Guidelines
The Marginal Field Guidelines, 2013 shall come into
effect from the date of its notifcation in the offcial
Gazette. The incentives of this Guidelines shall
however, apply to discoveries that qualify and are
accepted as Marginal Fields under the existing and
future exploration licences, PCAs, D&P leases and
Mining leases but are not in production prior to the
notifcation of these Guidelines.
Marginal/ Stranded
Gas Fields
27
Opportunities in Pakistan's Upstream Oil & Gas Sector
Open Access to
Public Domain Data
28
Ministry of Petroleum & Natural Resources, Government of Pakistan
The Government has made efforts to facilitate access
to Pakistans Oil & Gas E&P data for both foreign
and local companies. Under applicable laws, the
ownership of all geological, geophysical and other
data acquired by E&P companies operating in
Pakistan rests with the Government.
DGPC, being the regulatory agency, is the custodian
of all such data and is responsible to make public
domain data available to other interested E&P
companies when required. Keeping in line with
international trends and realizing the value as well
as critical role of proper data management solutions
in bolstering exploration activities, the government
established a national data repository called Pakistan
Petroleum Exploration & Production Data Repository
(PPEPDR).
The PPEPDR web portal provides convenient online
access to interested local and foreign parties that hold
interest in acquiring Pakistans oil and gas E&P data.
The website offers many services amongst which one
of the most noteworthy offering is online access to
the national data repository. This has been achieved
through the implementation of a state-of-the-art data
management solution by LMK Resources.
The data management solution is a high-level
enterprise system that has around 20 terabytes
of quality assured petro technical data archived
that can be accessed online or downloaded. It is a
centralized digital database for all seismic, well and
physical data. The solution incorporates cutting-edge
data management, archival hardware and software
technology.
The National Data Repository is equipped with a
state of the art data management solution with the
capability to manage E&P data online, near-line
and offine. The highly scalable architecture is an
integrated system, accessible through a web based
GIS enabled interface. It provides an integrated view
of information from multiple external databases. The
process of reviewing, purchasing and transferring
data uses simple subscriptions for online access via
a high bandwidth connection enabling clients to view,
select, and after necessary approvals, download data
to their desktops.
PPEPDR has been setup to save precious time and
cost while providing reliable and fast web-based
access to E&P data. Since its inception, the Pakistan
National Data Repository has improved speed, ease
of accessing and sharing geotechnical data.
The launching pad for easy, swift and cost effective
access to public data is now set and E&P companies
can make full use of this cutting-edge facility. Pakistan
is one of in the pioneering implementation of national
data repositories in the world. Through subscription,
any interested company can get online access of
data falling in public domain for new blocks as well
as open area.
For further information regarding online data access,
please visit: www.ppepdr.net.
Open access to
public domain data
Ministry of Petroleum & Natural Resources
Block "A", 3rd Floor, Pak Secretariat,
Islamabad, Pakistan.
Ph : +92 (51) 9211220
Fax : +92 (51) 9201770-9206146
Email : secretary@mpnr.gov.pk
Directorate General of Petroleum Concessions
1019, Pak Plaza, Fazal-ul-Haq Road,
Blue Area, Islamabad, Pakistan
Ph : +92 (51) 9204176-9202200
Fax : +92 (51) 9213245
Email : dgpc@mpnr.gov.pk
www.mpnr.gov.pk
Ministry of Petroleum & Natural Resources
Government of Pakistan