Notes
Slide Show
Outline
1
Oil, Gas & Mineral Resources of Pakistan
  • By
  • Usman Aminuddin
  • Federal Minister for Petroleum & Natural Resources
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Global and Regional Energy Situation 
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World Oil Reserves 2000 
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World Oil Supply 2000 
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World Oil Consumption 2000 
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World Gas Reserves 2000 
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World Gas Supply 2000Total Supply: 234 billion cu ft. per day 
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World Gas Consumption 2000 
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Pakistan Oil & Gas Resources and Infrastructure 
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Pakistan Primary Energy Mix 2000-01 
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Exploration of Oil & Gas 
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Oil & Gas Reserves
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Oil/Gas/LPG Demand & Production
  • Demand Production Deficit


  • Oil (b/d) 386,000 58,000 328,000
  • Imports


  • Gas (bcf/d) 2.9 2.4 0.5
  • Unsatisfied
  • demand


  • LPG (t/d) 1,200 857 343
  • Unsatisfied
  • demand



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Supply & Demand of Oil 
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Oil Refining Capacities 
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Pakistan Oil Demand and Domestic Production 
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Pakistan Oil Import Dependence (Scenario-I) 
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Pakistan Oil Import Dependence (Scenario-II) 
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Pakistan Natural Gas Network 
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Pakistan Gas Supply and Demand Projections 
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A Road Map to an Efficient Oil & Gas Sector 
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Road Map to an Efficient
Oil & Gas Sector
  • Liberalize Oil & Gas Sector
  • Privatize Public Sector Entities
  • Accelerate Gas Development
  • Improve Governance
  • Promote Foreign Investment
  • Improve Environment
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A. Liberalize Oil & Gas Sector
  • Shift from cost-plus to competitive regime.
  • Full commercial and operational authority to Board of Directors of public sector entities.
  • Deregulation of petroleum prices, discontinuation of the freight pool, review of marketing and dealer margins, etc.
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A. Liberalize Oil & Gas Sector (Contd.)
  • Review pricing and taxation of oil and gas to allow consumers to benefit from reductions in international prices and to adjust to higher prices.
  • Liberalize oil imports.
  • Rationalize gas retail pricing, link consumer price with substitute fuels.
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a. Oil Imports and Prices
  • FO : Import and prices deregulated effective 1.7.2000


  • LPG : Prices and allocation deregulated effective 15.9.2000


  • HSD : Imports deregulated:
          • 75% effective 1.1.2001
          • 25% effective 1.4.2001


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b. Gas Pricing Reforms
  • Consumer Price will be equal to:
    • = Well head price + T&D cost
    • + Guaranteed return + Taxation
  • Basis of Price will be the cost of service and no cross-subsidies will be provided
  • Subsidies will be withdrawn in a phased programme
    • Domestic sector subsidy will be withdrawn in 3-years
    • Fertilizer feedstock subsidy withdrawal under consideration


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B. Privatize Public Sector Entities 
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C. Accelerate Gas Development 
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"Fast-track exploration and exploitation of..."
  • Fast-track exploration and exploitation of domestic natural gas resources
  • Increase domestic supply of LPG from refineries and fields
  • Import natural gas through pipeline from neighbouring countries and LPG through a new import terminal.


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Gas Imports 
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Benefits of Gas Import 
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Potential Gas Import Source Countries 
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Potential Cross – Border Gas Pipelines 
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"GRA established;"
  • GRA established; OGRA under consideration
  • HOLDCO operational
  • Department of Petroleum and Energy Resources (DGs Oil/Gas/PC) being restructured to perform policy formulation and coordination functions.
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"A new,"
  • A new, more investor friendly “Petroleum Exploration and Production Policy 2001” announced in May 2001
  • Investment of US$ 978 million has been committed since October 1999 which includes:
    • Exploration US$ 73 million
    • Gas Fields Development US$ 505 million
    • Oil Pipelines US$ 278 million
    • Marketing US$ 55 million
    • Local Investment US$ 67 million
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"Increasing natural gas use to..."
  • Increasing natural gas use to replace fuel oil in power generation, and petrol/diesel in transport by CNG
  • Doubling the availability of LPG
  • Improving petrol and diesel oil specifications
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Some Options for Pakistan’s Energy Sector 
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Oil & Gas 
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 Shift to Gas
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Compressed Natural Gas (CNG) 
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Oil Refining and Infrastructure 
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Coal  
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Energy Efficiency 
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Renewable Energy Resources 
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Task Force on Energy Security  
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"The Mineral Sector"
  • The Mineral Sector
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Nature of Mining Industry
  • High risk capital investment, success rate 1:100, gestation period 10 to 15 years
  • Generation of geological data: Identification of exploration targets
  • Development and commercial exploitation requiring substantial investment; through private sector even in developed countries
  • Developing countries should offer pragmatic policies  to secure international investment
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Constitutional Provisions for
Mineral  Development
  • Minerals development is a Provincial subject
  • Generation of basic geological data and identification of exploration targets is Federal subject
  • Provinces to translate exploration targets to a resource
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National Mineral Policy
  • To attract international investment, National Mineral Policy announced in 1995 with consensus of all Provinces
  • Policy offers investment friendly regulatory regime, appropriate institutional arrangements and lucrative fiscal incentives
  • Present status: Provinces being persuaded to  implement Policy in true spirit
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Status of Mineral Sector
  • At the time of independence only 6 minerals under commercial exploitation compared to 52 at present
  • Share in GDP maintained at  0.5%, progressive
  • Discovered minerals having good grade, adequate reserves and location advantage,  under exploitation
  • Mineral with low grade and location disadvantage, await technological advances and development of infrastructure for exploitation
  • Present annual mineral exports estimated at US $ 27 million and imports US $ 143 million
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Status of Mineral Sector (Contd..)
  • Saindak copper-gold, Dilband iron ore, and Hazara phosphate deposits to start commercial exploitation by 2002.
  • Four proved mineral deposits to start commercial  production during next 3 years with international investment:
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Minerals under Exploitation in Pakistan (Contd..) 
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Minerals under Exploitation in Pakistan (Contd..) 
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Minerals under Exploitation in Pakistan (Contd..) 
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Major Discoveries Since Independence 
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Major Discoveries Since Independence (Contd..) 
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1.  Lack of technical know-how and paucity
     of funds at Provincial level

2.  Provinces shyness to take assistance from
     the Federal Government

3.  Lack of co-ordination between Federation
     and Provinces

4.  Non-implementation of National Mineral
     Policy by the Provinces hindered
     international investment
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Strategy to Harness Identified Natural Endowments.
  •   Exploitation of proved mineral deposits
  •   Evaluation of identified prospects
  •   Generation of exploration targets


  • -  Complete geological map               -  Geophysical survey
  • -  Geochemical survey
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Immediate   Thrust
  • Coal
  • Dilband Iron Ore
  • Precious Stones
  • Lead - Zinc


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Coal Reserves & Production (2000-01)
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Strategy to Increase Coal Use
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Strategy to Increase Coal Use (Contd..)
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Significant Recent Initiatives
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Significant Recent Initiatives (Contd..)  
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Vision ‘2012’  
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Vision ‘2012’ (Contd..)  
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Vision ‘2012’ (Contd..)