Senate Standing Committee on Petroleum in its meeting on Friday was given a briefing on Petroleum Policy 2012, the rights/share of provinces under Article 172(3) of the Constitution, and the details of concession agreement and CSR of the companies under the policy.
The meeting was held under the chairmanship of Senator Mohsin Aziz here at the Parliament House and was attended among others by Senators Salahuddin Tirmzi, Saleem Zia, Shamim Afridi, Behramand Tangi, Sardar Yaqoob Nasir, Qurat ul Ain Marri, Javed Abbasi, Secretary Petroleum, MD PMDC Sajid Amir Tufail MD SNGPL and officials from DGPC.
Imran Ahmed from DGPC briefed the committee that the total oil and gas production in the country for the year 2018-19 is 89,030 BBL oil per day oil and 3,935 MMCFD gas. The overall energy mix of the country comprises of Gas 34%, LNG 9%, oil 31%, LPG 1%, Coal 13%, and other sources 8 %. The total sedimentary area was told to be of 827, 268 square kilometres and the area under exploration is 224,976 square kilometres. As of today the total discoveries have been 394 with 85 of these of oil and 309 of gas with a success rate of 34%.
The Petroleum (exploration and production) policy 2012 which governs the complete process associated with this sector was approved by Council of Common Interests. The briefing also included the process of awarding blocks, the fiscal regime and licensing zones, producers’ oil and gas pricing mechanism, royalties and income tax, incentives for unconventional hydrocarbons and other obligations including social welfare in the local population. The ministry was directed to work on inclusion of Senators as well as in the social welfare committees across the country in addition to the members of National Assembly. The Committee also sought complete details of how much money has so far been spent on corporate social responsibility and social welfare and details of development or infrastructural work done.
The Committee was told that other than Khyber Pakhtunkhwa the other three provinces have not yet nominated a focal person who will work with DGPC to ensure smooth implementation of Article 172(3) that talks about joint and equal vesting of oil and gas productions. The Committee decided to write a letter to chief secretaries of the three provinces in this regard.
While discussing the resolution passed by the House in 2016 regarding supply of natural gas to residents of Circles Lora, Baghan, Bakot, Upper Lower Galiyat on priority basis. The mover, Senator Javed Abbasi, told the Committee that after detailed consultations and in depth survey of the area the estimate drawn of area of one circle was more than 2 crores. He suggested that the supply of gas can be arranged in phases to ensure timely completion of the process. The Committee directed SNGPL to work out the plan with the mover and report to the committee.
The committee was given briefing by MD PMDC regarding complete procedure for renewal of the contract of its leases and the grievance of allotee of lease agreement No. 109. The MD told the committee that the contractor can submit an application to PMDC if he wants to extend his contract or has some grievances to be addressed.
The Committee also discussed proposals for maintaining required gas pressure fir domestic/industrial use during winter season by SNGPL.