The Pakistani government has announced a new petroleum policy, attracting investment of about US$2.02 billion for oil and gas exploration in the country during the last three years.
The policy projects incentives including: better gas price, windfall levy reduced from 50%-40%, base price for crude oil and condensate increased from $30/bbl to $40/bbl, said an official source for Pakistan’s Daily Times.
“Ceiling of $100/bbl is replaced with $110/bbl, while renewal of lease will also be ensured, after expiry of lease term for another five years subject to payment of amount of 15% of the wellhead value,” the source added.
Similarly, the sale of 90% share of pipeline specification gas to government of Pakistan and 10% by exploration and production companies to any buyer with prior consent of the government is another step to encourage foreign investment. The official said a prize of $1 per million British thermal unit (MMBTU) shall be given for first three discoveries in offshore area.
The policy 2012 gas price will also be extended to the lease for additional 10% production over and above the commitment of development plan approved by the government, the source said.