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- By
- Usman Aminuddin
- Federal Minister for Petroleum & Natural Resources
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- 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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- Liberalize Oil & Gas Sector
- Privatize Public Sector Entities
- Accelerate Gas Development
- Improve Governance
- Promote Foreign Investment
- Improve Environment
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- 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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- 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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- 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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- 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- Subsidies will be withdrawn in a phased programme
- Domestic sector subsidy will be withdrawn in 3-years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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- 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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- 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, 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 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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- 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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- 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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- 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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- 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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- 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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- Exploitation of proved mineral
deposits
- Evaluation of identified
prospects
- Generation of exploration
targets
- - Complete geological map - Geophysical survey
- - Geochemical survey
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- Coal
- Dilband Iron Ore
- Precious Stones
- Lead - Zinc
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