Why Pakistan fails in boosting local production of crude oil and gas?

The report filed by Kazim Alam in Dawn should be an eye opener the policymakers and law enforcing agencies of Pakistan. The first and most important point is that production of oil and gas is constantly on the decline and E&P companies have not been able to increase production.

The second point is the real cause of concern, despite the fact that the country has a drilling success rate that’s notably higher than the international average (Every third drilling is successful in Pakistan as against one in five internationally; the average wells drilled in the country remains low.

Kazim has raised a pertinent point, whom to blame for the poor state of E&P in Pakistan: nature or bad governance? In my opinion the Government of Pakistan has to accept its inadequacy. It has failed in attracting foreign companies as well as providing security cover to the staff of E&P companies working in remote areas.

Since shifting blame to others is common the quote of an executive burst me into laughter. Citing the example of Kekra, a field located near Iran, he said the prospects seemed so good that E&P companies went all in, committing as much as US$140 million, or more than Rs28 billion at the current exchange rate. But they found nothing there. The supposedly huge reserves accumulated over hundreds of thousands of years had already slipped away in the intervening period.

The conclusion is that discoveries are small the efforts have to be accelerated by allocating more funds for drilling more wells. One of the most painful observations is that most of the E&P companies operating in public sector are made to pay huge dividend rather than spending money on drilling of new wells.

Some analysts say that in Pakistan people with vested interest often prevail over, they make big money in the purchase of crude oil as well as finished products. In case indigenous production of crude and POL increases, they will go bankrupt.

If any one does not agree with me should peep into the history. Excluding the output of OGDC, the share of all other companies is disappointingly low.
No ‘green’ refinery has been established after PARCO. Byco may be a good addition, but it is based on outdated technology. Other refineries have also failed major revamping and continue to produce low value added products.

To conclude it is sufficient to say only the Government of Pakistan can play a lead role by: 1) bringing in foreign E&Ps into the country, 2) offering new leases throughout Pakistan and 3) Encouraging OGDC to form new joint ventures.

Is Israel a free state?

Freedom in the World publishes a global report evaluating political rights and civil liberties in different countries and selected territories. The 2019 edition of the report includes development in 195 countries and 14 territories between January 1, 2018 and December 31, 2018.

According to the report, with a score of 80 out of 100, there is only one free country in the Middle East, Israel. Among all Mideast nations, this compares favorably with non-free nations such as Iraq (27), Iran (17), Saudi Arabia (10) and Syria (-1).

Rather than evaluating governments or government performance, Freedom in the World measures the rights and freedoms of individuals in the real world. Political rights and civil liberties can be affected by both state and non-state actors, including insurgents and other armed groups.

The US-based Freedom House said in its latest annual report that Israel is the only "free" state in the Middle East, contrary to claims by the country's critics who say its democratic values are being eroded. "Israel remains the region's only free country," read the report, Freedom in the World 2013, released days before Israel's election.

Independence is a condition of a person, nation, country, or state in which residents and population, or some portion thereof, exercises self-government, and usually sovereignty, over its territory.

But it also means what Mrs. Eleanor Roosevelt said. ”With freedom comes responsibility”

A Country is independent of other countries, but it relies on its people for leadership, productivity, development, healthy society, and keeping democracy and freedom alive.

For that to happen we must follow what Jonathan Lockwood Huie said, “Independence of a nation begins with independence of self. “

Israel and the United States of America (US) both claim they are independent countries, but don’t they need each other? Certainly Yes, Israel needs the support of the US with weapons, shared research and development of new weapons, new technologies, new medical research, and mutual ideas for their free countries, and keeping democracy and freedom alive.

The US as well needs Israel, which is the only free and modern Democratic country in the Middle East, as a gateway to Asia and the Middle East, as well as its scientific teams that cooperate with the American researchers, technology developers, etc.

Therefore, it has to be remembered that the independence of the nations starts within themselves, the independence of the people, their hearts, and their speech.

John Kerry demands action against 'Petrostate Dictators'

According to a report by Reuters, US Climate Envoy John Kerry said on Tuesday Russia's invasion of Ukraine was a warning to nations around the world that they cannot be hostage of oil-rich autocratic governments to meet their energy needs.

Speaking to Reuters on the sidelines of the UN Ocean Conference in Lisbon, Kerry said Russia has been using energy as a weapon and would continue to do so in the future but Europe was committed to put an end to its dependency.

"It's a warning to everybody that you do not want to be prisoners of petrostate dictators who are willing to weaponize energy," Kerry said.

Russia launched a large-scale invasion of Ukraine on February 24 this year, which Moscow calls a "special operation".

Kerry said the world was "running out of time" to tackle climate change but governments should not use the war in Ukraine as an excuse to delay the process even further.

"We have seen people choosing short-term (solutions) in order to respond to the challenge of losing gas for Russia," he said.

"And we cannot allow the war in Ukraine to alter the reality that we need to reduce emissions and we need to deal with speeding up the transition to alternative renewable energy."

Soaring energy costs and supply shocks triggered by the Russian invasion have spurred some countries to bet more on renewables but others to burn more coal, buy up non-Russian gas or pause efforts to reduce fossil fuels.

The European Union (EU) relied on Russia for 40% of its gas before Moscow invaded Ukraine.

"We have to make up some gas for Europe, which the US will work to do with others, but it has be a one for one replacement - not a whole series of new infrastructure with a 20- or 30-year horizon because that will crush the ability to respond to the climate crisis," he said.

He added, "We do not need to have new liquefied natural gas projects that require new drilling."

Germany drew criticism from the United States and others, including EU member states, for supporting the planned Nord Stream 2 gas pipeline, designed to deliver Russian gas directly to Germany. The project was halted two days before the invasion started.

Kerry said it was not worth "going backwards" and described the European Union as a "terrific leader" on renewable energies that has set higher goals than many other countries in the world.

 

World Bank happy over Padma Bridge opening

The World Bank that pulled out of financing Padma Bridge, citing a never-proven “corruption conspiracy”, has now congratulated Bangladesh and its people on completion of the much-awaited bridge.

“We are happy that the bridge is complete and Bangladesh will benefit from it,” World Bank Country Director for Bangladesh Mercy Tembon told the media during the inauguration event on the Mawa end of the bridge.

Now is the time to move Bangladesh-World Bank relations forward. The Padma Bridge will make a huge contribution to the economic growth of Bangladesh, she said.

“This bridge will contribute to accelerating integrated growth in the country and reducing poverty,” she added.

The World Bank, which initially agreed to co-finance the construction of Padma Bridge, cancelled its loan alleging corruption over the appointment of consultants for the bridge.

The Washington-based agency had a loan deal amounting to US$1.2 billion with Bangladesh for the project involving an initial estimated cost of US$2.9 billion.

Other lenders, such as the Asian Development Bank, Japan International Cooperation Agency, and the Islamic Development Bank also backed out of financing the bridge, leaving the government quite off-guard and embarrassed.

But, neither a case by the Anti-Corruption Commission nor another in a Canadian court failed to prove the corruption allegations.

It was Prime Minister Sheikh Hasina who stood alone and decided to go ahead with the nearly US$4 billion project with the country’s own funds.

The government took a challenge and proceeded with the self-financing plan, keeping aside money in the annual budget for the Padma Bridge project. The construction began in December 2015.

Dispelling all clouds of uncertainties, Prime Minister Sheikh Hasina finally inaugurated the long-awaited Padma Bridge, the longest in Bangladesh, connecting people on both sides of the Padma River.

The Padma Bridge project has been implemented at a cost of Tk30,193.39 crore with almost 100% internal funding which is believed to bring a new world to the country’s economy by connecting 21 southwestern districts through roads and railways with the capital.

The construction of the 6.15km (3.82 miles) bridge began in November 2015 to connect 21 districts of the country’s southwest with Dhaka via road and rail, thereby cutting travel time considerably.

The double-layer steel truss bridge incorporates a four-lane highway on an upper level along with a single-track railway on the lower level.

This is one of the largest mega projects Bangladesh has ever undertaken and the entire amount is financed by the Bangladesh government. 

Qatar to host Iran United States talks on reviving 2015 nuclear deal

According to a Reuters report, Qatar will host indirect talks between Iran and the United States in coming days. Iranian media also reported on Monday that amid a push by the European Union to break a months-long impasse in negotiations to reinstate a 2015 nuclear pact.

"Iran has chosen Qatar to host the talks because of Doha's friendly ties with Tehran," Mohammad Marandi, a media adviser to Iran's top nuclear negotiator, told the ISNA news agency.

A source briefed on the visit said that US Special Envoy for Iran, Robert Malley, was expected to arrive in Doha on Monday and meet with the Qatari foreign minister. An Iranian official told Reuters that Iran's chief nuclear negotiator, Ali Bagheri Kani, would be in Doha for the talks on Tuesday and Wednesday.

Iran's foreign ministry was not immediately available for comment and the Qatari government didn’t comment. Later, however, Iran's Tasnim news agency cited a source at Iran's foreign ministry as saying that "Bagheri will travel to Doha on Tuesday".

The pact appeared close to being secured in March when the European Union invited foreign ministers representing the accord's parties to Vienna to finalize an agreement after 11 months of indirect talks between Tehran and President Joe Biden's administration.

But the talks have since been suspended, chiefly over Tehran's insistence that Washington remove the Islamic Revolutionary Guard Corps (IRGC), its elite security force, from the US Foreign Terrorist Organization (FTO) list.

Last week, one Iranian and one European official told Reuters that Iran had dropped its demand for the removal of the IRGC's FTO sanctions, but still two issues, including one on sanctions, remained to be resolved.

"Nothing is agreed until everything is agreed," Iran's Foreign Ministry spokesman, Saeed Khatibzadeh, said on Monday.

The 2015 nuclear pact imposed restrictions on Iran's nuclear activities in exchange for the lifting of international sanctions. Then-President Donald Trump pulled the United States out of the deal in 2018, reimposing tough economic sanctions on Tehran.

Iran's clerical establishment responded by breaching the pact's nuclear restrictions, including a 3.67% cap on the level to which it could purify uranium and a 202.8-kg limit on its enriched uranium stock.

Joe Biden to ask G7 nations to ban import of Russian gold

US President, Joe Biden said Sunday that the Group of Seven (G7) nations will ban Russian gold imports to further impose financial costs on Moscow for its invasion of Ukraine.  

“The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine,” Biden tweeted on Sunday. “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.” 

Biden’s announcement came on the first day of a G7 meeting in Germany; a formal announcement is expected later on during the summit.  

While it does not bring in as much money as energy, gold is a major source of revenue for the Russian economy. Restricting exports to G7 economies will cause more financial strain to Russia as it wages the war in Ukraine.  

The G7 includes the United States, France, Canada, Germany, Japan, the United Kingdom and Italy.  

The US and its allies have been searching for more ways to punish Russia for the bloody war that recently entered its fifth month. Biden has announced waves of penalties coordinated with allies that range from sanctions on Russian officials and oligarchs to export controls to sanctions on major Russian banks.  

Still, Europeans are limited in what they can do because of their dependence on Russian energy imports. European countries have vowed to phase out Russian oil but have not taken steps like the US to do so immediately.  

Biden administration officials teased new announcements to squeeze Russia ahead of Biden’s trip to Europe and it is possible there will be more announcements beyond the plan to ban Russian gold imports.  

Biden embarked on the trip to Europe for the G7 meeting and, later, a North Atlantic Treaty Organization (NATO) summit with the goal of demonstrating unity with allies on keeping up pressure on Russia even as the war roils the global economy. 

Biden spent Sunday morning meeting with German Chancellor Olaf Scholz and later participated in a working lunch with other leaders.  

A White House readout of Biden’s meeting with Scholz indicated Ukraine was a main topic of conversation.  

“The leaders underlined their commitment to Ukraine’s sovereignty and territorial integrity, as well as their continued provision of military, economic, humanitarian, and diplomatic support to help Ukraine defend its democracy against Russian aggression,” the White House readout said. “The leaders also discussed efforts to alleviate the impacts of Russia’s war in Ukraine on global food and energy security.” 

Biden also thanked Scholz for committing to boosting Germany’s defense spending above NATO’s 2% of gross domestic product target.  

A White House official characterized the meeting as “very warm and friendly” and said there was “very broad alignment on all of the issues that they discussed and all the common challenges that our countries are working on together.”

 

Russia-Azerbaijan-Iran-Pakistan railway route

Chairman of the Russia-Iran Joint Trade Council has said Moscow is pursuing the development of trade and transit through the Russia-Azerbaijan-Iran-Pakistan railway route, the portal of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) reported.

Speaking in a meeting with ICCIMA Head Gholam-Hossein Shafeie on Saturday, Vladimir Abedinov proposed to form a working group between the representatives of the chambers of commerce of Russia, Azerbaijan, Iran, and Pakistan to explore various aspects of the trade through the mentioned route.

Expressing Russia’s willingness to strengthen trade relations with Iran, the official pointed to the western sanctions against Russia and said, "These sanctions have changed the transit and logistics routes in the region. Since the impact of sanctions has caused Russia's trade relations to undergo significant changes. In this regard, we are looking for new transportation routes in the region.”

“Completion of the Rasht-Astara route is of great importance for Russia's trade purposes. This route paves the way for Russia to access Pakistan,” Abedinov said.

He further noted that Russia can also access Pakistan and India by sending its cargoes to Iran’s northern ports by vessel and then transit them through Iran to Pakistan and India.

"This is a complex route; therefore, Russia seeks to replace it with the railway through Azerbaijan to Iran, Pakistan, and India,” he added.

Shafeie for his part pointed to the current conditions as special for the whole region and considered it necessary to make special decisions in accordance with these conditions.

According to the ICCIMA head, considering the current situation, the Iranian government has made the issue of transit a priority in its goals and plans, although there are infrastructural problems in the port area on both the Iranian and Russian sides.

He further mentioned some of the problems regarding rail transportation to Pakistan, saying, “The railway problems in Pakistan are not easily solved despite Iran's efforts. For example, a shipment was sent by rail from Iran to Lahore, Pakistan, which took 35 days to arrive to the destination.”