Malaysian based company Petronas makes 2nd gas discovery in Pakistan

[EagleEyes]

Malaysian based company Petronas makes 2nd gas discovery in Pakistan
Tuesday, 24 June 2008 04:22 Pakistan Daily

A Malaysian based company, Petronas Pakistan Limited has made a second gas discovery in Mubarak Block, located in Ghotki District, Sindh. According to an announcement on Monday, the discovery was made at the Saqib-1A well, which was drilled to the planned depth of 3,780 metres. The well was successfully tested and flowed between 13.4 million and 25.2 million standard cubic feet of gas per day and between 47.5 barrels and 63.9 barrels of condensate per day. Petronas Pakistan Limited is being explored in collaboration with ENI Pakistan Limited and Pakistan’s government Holdings (Private) Limited. Previous exploration activities resulted in the discovery of Rehmat-1 well in 2001, which was developed and brought on stream in 2005. Subsequently, the partners decided to drill a new exploratory well, the Saqib-1A after extensive evaluation of the block and it would start production by 2009.

Malaysian based company Petronas makes 2nd gas discovery in Pakistan

 

[Imran Khan]

why not in my state balochistan .we are kings of gas any way good news for pakistan

 

[Awesome]

Yay Ghotki!!

That town seriously needed a boost.

 

[maqsad]

How much of the profit is now going to Petronas and why why why did a pakistani company not make this discovery? For decades Pakistan has been pumping gas from Balochistan and drilling new wells too I assume so what happened? Did all the pakistani engineers quit their jobs and sign up in malaysia with petronas?

 

[Awesome]

Ghotki is already pumping gas.

This is another field that might have been missed out.

 

[zpak]

Are there any details on how the profits are going to be split? The last thing we need is Petronas pocketing the majority of the wealth and bribing a few officials.

 

[Neo]

Whats the fuss about foreign investment or profits being shared with multinationals? The gas and oil will end up in local markets adding to our national out put.

Its a very minor discovery anyway, one of the smallest in the country.

 

[zpak]

No fuss, just making sure that the profits are being distributed fairly and not being pocketed by the multi-nationals and a few officials. No matter how small, we need each and every penny to stay in the country and benefit the people.

 

[maqsad]

LOL @ "The gas and oil will end up in local markets adding to our national out put."

Oh yeah that really makes up for everything, after getting ripped off lets go ahead and add it to "national output" too. Petronas buys gas fields for next to nothing. Heck, I think they steal them for nothing at all, forget next to nothing. And then they find gas and sell that gas at market prices to any one they want, take 80% of that price back to malaysia, give 10% to Asif...err sorry I mean GoP and write the last 10% off as drilling expenses. Maybe 1% out of the 80% goes to bribes?

Here is how it works out in a hypothetical scenario. Petronas gets mining rights over 10 square miles in Sindh, they pay nothing because some bhangee in the military or civilan govt arranged the contract for a few million in a dubai account. Petronas spends about $100 million on equipment, supplies and salaries and keeps digging and digging. Then they strike gas which totals to $1 billion in market value. That $1 billion is sold at full price to WAPDA and the money goes into Petrona's bank account of course. Petronas pays $100 million to GoP so in effect pakistanis get the gas at 90% of market rates. Petronas walks off laughing with $800 million dollars in profit and that gas is "added to national output" in govt statistics so that if some random pakistani ever reads these obscure, twisted, warped, deceptive figures they are fooled into thinking something good is actually happening in Pakistan.

 

[roadrunner]

LOL @ "The gas and oil will end up in local markets adding to our national out put."

Oh yeah that really makes up for everything, after getting ripped off lets go ahead and add it to "national output" too. Petronas buys gas fields for next to nothing. Heck, I think they steal them for nothing at all, forget next to nothing. And then they find gas and sell that gas at market prices to any one they want, take 80% of that price back to malaysia, give 10% to Asif...err sorry I mean GoP and write the last 10% off as drilling expenses. Maybe 1% out of the 80% goes to bribes?

Here is how it works out in a hypothetical scenario. Petronas gets mining rights over 10 square miles in Sindh, they pay nothing because some bhangee in the military or civilan govt arranged the contract for a few million in a dubai account. Petronas spends about $100 million on equipment, supplies and salaries and keeps digging and digging. Then they strike gas which totals to $1 billion in market value. That $1 billion is sold at full price to WAPDA and the money goes into Petrona's bank account of course. Petronas pays $100 million to GoP so in effect pakistanis get the gas at 90% of market rates. Petronas walks off laughing with $800 million dollars in profit and that gas is "added to national output" in govt statistics so that if some random pakistani ever reads these obscure, twisted, warped, deceptive figures they are fooled into thinking something good is actually happening in Pakistan.

Where do you get your figure of 80%. The only thing I agree with you on, is that Asif is going to pocket at least 10% of the Pakistani share. Unless he's taking Benazir's share also now.

 

[ejaz007]

This is not a minor discovery. Considering the general reservoir potential of Pakistan with the exception of some areas this is decent discovery. Petronas like all other investors has right to recover its exepnses. There is nothing wrong. As far as 80% is concerned this is wrong. The exploration activity in Pakistan is generally governed by petroleum policy rules 1986 and it is well written legal document. Every one is bound to follow it. Once exploration phase is over and commerciality declared the GOP share increases.

One should not start writing about a topic he or she does not know about. First go and read Petroleum policy 1986 and then comment.

 

[maqsad]

Where do you get your figure of 80%. The only thing I agree with you on, is that Asif is going to pocket at least 10% of the Pakistani share. Unless he's taking Benazir's share also now.

One should not start writing about a topic he or she does not know about. First go and read Petroleum policy 1986 and then comment.

Roadrunner and ejaz007, if you had actually read my post before commenting on it you would both have seen that it is a hypothesis, and is clearly stated as such. In a hypothetical scenario when you don't have real figures you use your own figures to illustrate the CONCEPT you are trying to push. Once again the concept is that the pakistani taxpayers would get ripped off just like they routinely get ripped off when it comes to foreign banks conducting mischief in pakistan, foreign mining companies digging for coal in pakistan(a recent thread here), foreign companies mining for gold and copper(billions looted right underneath everyones nose and still nothing is done or even said), foreign telecommunications companies making exorbitant profits and taking them out of the country...the list goes on and on and on and on.

So ejaz you say there is a 1986 law which prevents pakistan getting looted when it comes to petroleum? I will try and look for this little gem but in the meantime can you tell me if there are any laws which remedy the looting of banks, precious metal mining, coal and foreign investment in high yield sectors such as telecom? If there are please mention them.

 

[roadrunner]

^^It doesn't illustrate your "concept" actually.

If i choose a figure of 80% in your post, it looks really bad, and I'd agree it would be very stupid on the Pakistani government's part to deal with someone who wanted 80% of the share of the resources. However if someone was only getting 30% of the share, and the GoP was getting 70%, then this sounds like it's worth doing.

 

[maqsad]

^^It doesn't illustrate your "concept" actually.

My hypothetical concept...

If i choose a figure of 80% in your post, it looks really bad, and I'd agree it would be very stupid

So it doesn't illustrate my concept yet you still agree with it. You just contradicted yourself. My point, my concept is that large organised multinationals are looting the pakistani economy. Stealing 80% of the profit is considered looting and you have agreed with my hypothetical figures which are an integral part of the concept yet you still don't agree with the concept?

on the Pakistani government's part to deal with someone who wanted 80% of the share of the resources. However if someone was only getting 30% of the share, and the GoP was getting 70%, then this sounds like it's worth doing.

Some may think 30% is a ripoff too but neither you nor I have the actual figures which are not public(what a surprise) so you can either agree with my concept(which you have even though you deny it with complete futility) or you can disagree with my concept. You clearly chose to agree with me. There are figures available which show pakistan has been looted by banks, precious metal mining companies and coal mining companies. In fact there have been threads made about each topic on this very forum. Each time it is obvious pakistan got ripped off.

So unless you can provide some figures, skewed or not, you have no basis to disagree with a concept and nor can you debunk a suspicion. And yes it is very reasonable to suspect pakistan got ripped off here because that is the usual pattern, everybody knows it.

 

[roadrunner]

^^Good God Maqsad, I can only think you're arguing for the sake of arguing.

Look, 80% is a rip-off, agreed, just as I work 10 hours a day and get paid 2 rupees for it is

But i don't get paid 2 rupees for 10 hours of work. If I did, it would be stupid.

Now if i get paid a thousand rupees for working 10 hours a day, then it's not so stupid.

Just as 30%, isn't so stupid a price to share with others when they do the work of looking for oil. Which is why everyone is asking (and telling you), that you're figure of 80% is not correct.