Islamabad: Petroleum exploration and production companies have requested a tariff differential subsidy of 75 billion rupees from the federal government.
Pakistan Petroleum Exploration and Production Companies Association (PPEPCA) has said in a letter to Minister Petroleum Kolkhe that the dues of foreign petroleum exploration and production companies have reached 600 million dollars, if these dues are not paid, gas and oil Exploration operations, which have already been curtailed due to financial constraints, will have to be curtailed.
The letter added that instead of promoting exploration of oil and gas reserves in the country, more focus is being placed on importing LNG, delaying payments to foreign companies, and companies not investing in their assets. , which has hampered the drilling process, and has reduced production by 300 million cubic feet of gas on a daily basis.
The association has called for steps to be taken to resolve the problems of the upstream companies, the association demanded Rs 75 billion from the government to meet the revenue shortfall of Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL). It has demanded a budget grant of Rs., or a tariff differential subsidy, to be paid towards the dues to the upstream companies, which will enable gas and oil exploration operations to continue in the country.
The letter demanded that the State Bank be directed to release payments to foreign companies through the California Exchange. There are and some have returned, new investors are reluctant to enter the field, 23 wells were planned to be drilled by February 2024 but only 9 wells have been drilled.
At present, only 19 of the 42 available wells are operational, reducing gas production by 300 mmcfd. The shortage will increase and dependence on imported gas will increase.
