Amir Khan

The MoU signed between Pakistan Refinery Limited (PRL) and Oil & Gas Development Company Limited (OGDCL) aims to boost the energy sector and attract foreign investment in Pakistan, Zeeshan Zaidi, manager external communication at OGDCL, said this while talking to WealthPK. “The goal of this strategic partnership is to establish a collaborative connection between the two institutions, leveraging their knowledge and resources to drive growth and innovation,” he said.

Pakistan is experiencing a severe energy crisis. As per data from the Ministry of Energy, the electricity shortfall has increased from 3,000 to 4,000 megawatts. A major portion of the energy sector is based on the imported oil. According to the finance ministry, Pakistan imported $17.03 billion worth of oil in fiscal year 2023, a significant amount for any developing economy.

Pakistan has a diverse territory rich in natural resources, but owing to a lack of technological education and funding, the country is unable to explore its riches. According to the Pakistan Bureau of Statistics, the GDP-to-investment ratio is approximately 14 to 15%, which is relatively low. “OGDCL, Pakistan’s largest exploration and production firm, will explore potential equity investments in PRL as a strategic investor. This investment would provide PRL with the necessary resources to improve and expand its refinery. The refinery can process 50,000 barrels of crude oil per day into various petroleum products. This will create a platform for international investors, increase FDI and reduce the energy gap,” Zeeshan said.

OGDCL has already provided 33% and 34% of oil and gas respectively of the country’s total energy industry. Working with 100% interest in the field, the company anticipates major recoverable reserves of 13 million barrels of oil and 219 billion cubic feet of gas in the Bettani exploration block. The company’s active development plans in Balochistan and Khyber Pakhtunkhwa provinces, including locations like Jhal Magsi and Bettani, are projected to assist future exploration and development in these areas.

“The collaboration between PRL and OGDCL is not only beneficial for both companies but also addresses the energy sector’s deficiency. The availability of adequate energy supplies is crucial for Pakistan’s socioeconomic growth and increased exports. By prioritizing development plans and expediting the monetization of discovered assets, the company aims to meet the country’s energy demands and generate early cash flows,” he added.

Credit: Independent News Pakistan-WealthPk