The Government of Pakistan (GoP) has granted the license for
exploration of oil in the Makhad block to a subsidiary of Kuwait Foreign
Petroleum Exploration Company.
According to the details, the GoP has executed an
Exploration License (EL) as well as a Petroleum Concession Agreement (PCA)
signed by Petroleum Division Secretary Mian Asad Hayauddin and Qazi Mohammad
Saleem Siddiqui, Director General, Petroleum Concessions, and CEO of Kuwait
Foreign Petroleum Exploration Company (KUFPEC) at a ceremony also attended by Federal
Minister for Petroleum, Omar Ayub Khan.
On the occasion, the Petroleum Minister said that "the
execution of PCA and EL will attract foreign investment in the petroleum sector
and bridge the demand and supply gap in the energy sector."
Khan further said that the efforts will bear fruit in future
years in the form of hydrocarbon reserves.
The Makhad block, is situated in Attock, Mianwali and
Chakwal in Punjab as well as Kohat in Khyber Pakhtunkhwa. It is said to be
spread over 1,562.92 square kilometers.
Kufpec will invest at least US$9.8 million in the block.
Apart from the minimum firm work commitment, the company is also obligated to
spend a minimum of US$30,000 per year in Makhad block on social welfare
schemes.
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