Oil, Gas and Refinery Projects update

[ghazi52]

$2 billion North-South RLNG pipeline: Pakistan, Russia finalise BOOT agreement

ISLAMABAD: Pakistan and Russia have finalised the BOOT (build, own, operate and transfer) agreement for laying down $2 billion North-South RLNG pipeline from Nawabshah to Lahore. The draft agreement has been handed over to respective legal teams for converting it into legal language.

A pipeline of 300 kilometers will also be laid down from Karachi to Nawabshah if the need be. Under the BOOT deal, both sides have finalised the payment and invoicing mechanism and reached agreement on operational and termination mechanism.

During the four-day talks, Pakistan was represented by the Inter-State Gas System (ISGS) and Russia by the RT Global.

The talks got underway in Islamabad from October 15 and ended on October 18.

According to the Inter-State Gas System MD Mobin Saulat, the BOOT agreement had been finalised and its draft handed over to the legal team.

The Russian company will hand the project over to Pakistan after 25 years, as it will be executed under the BOOT arrangement.

Asked about the project cost and its transportation fee, Saulat said both side had just completed and finalised the agreement.

He said for Russia will send its commercial team to hold talks with the Price Negotiating Committee (PNC) for the project cost and transportation fee which was already in place.

Saulat said Pakistan direly needed this project to get RLNG that will be injected through private to private model LNG terminals. Three terminals are being planned to be set up in Port Qasim, he said.

Pakistan’s two LNG terminals are currently equipped with the off-take guarantee of 1.2 bcfd re-gasified LNG from the government of Pakistan. However, three private-to-private model based LNG terminals are also in pipeline, which may be operational by 2020.

And on top of that, (Turkmenistan-Afghanistan-Pakistan –India) TAPI is also re-scheduled to be operational by 2020.

Under this project, Pakistan will be importing 1.3 bcfd gas. The main problem will be how to evacuate the gas to various parts of the country and for this purpose both Pakistan and Russia will give the final shape to the BOOT agreement for laying down the much-needed N-S pipeline. The pipeline with diameter of 42 inch will have the capacity to evacuate 1.2 bcfd gas. Asked if the RT Global had come up with a sanctions-free structure during the talks which was inevitable to ensure a smooth sailing of the project, Saulat said the Russians did not bring a sanctions-free structure; however, the had assured that they will send its plan to this effect in two weeks and this would be taken up ministry to ministry level.

Both sides have done maximum work in the last two years towards the agreement but the main stumbling block in the project’s execution is the US sanctions on the Russian company.

ROSTEC, the mother company of the RT Global, is facing sanctions on account of Ukraine issue.

During the parleys starting from today (Monday) the RT Global will also come up with a sanctions-free structure to get the gas pipeline deal done.

Saulat said the Ministry of Defense had been asked to provide the RoW (right of way) for the pipeline project and expressed the hope that the NOC will soon be in possession.

 

[ghazi52]

Govt to introduce more exploration blocks
Published: December 12, 2018


ISLAMABAD: The government will make all-out efforts to increase the exploration acreage by introducing more exploration blocks to ensure energy security, said Petroleum Minister Ghulam Sarwar Khan on Tuesday.

Addressing the annual technical conference held every year by the Pakistan Association of Petroleum Geoscientists and the Society of Petroleum Engineers (SPE) Pakistan, the minister said the country needs sustained growth in indigenous petroleum production and supply to control the huge import bill.

He said, “We are happy to see that companies participated and offered winning bids for exploration blocks in a bidding round, which took place last month. This shows the trust of investors and their interest in future exploration licensing rounds.”

Speaking on the occasion, Petroleum Secretary Mian Asad Hayauddin said, “We need a high level of commitment, technology and financial resources to find and develop these natural resources. The only way to make this happen is that all stakeholders including public and private sector companies as well as government organisations work together as a synchronised and efficient team.”

On the other hand, Conference Chairman Dr Saeed Khan Jadoon said oil and gas are major contributors of energy and require aggressive efforts in research and development work. For the last 60 years, efforts are continuously made to explore conventional oil and gas reservoirs, while unconventional reservoirs are yet to be exploited, he added.

Pakistan Association of Petroleum Geoscientists Chairman Dr Nadeem Ahmad said over the last 10-15 years, replacing reserves and maintaining oil and gas production has remained a serious challenge for the domestic oil and gas industry. “New value is created only through exploration, which is the starting point of petroleum value chain.” Organic growth costs two to four times less than buying reserves or importing oil and gas, Nadeem added.

“Imported crude and refined petroleum products make 82-83% of our total consumption. Domestic crude oil production (89 kbo/d) is 33% of the total crude we use (93 MMbo). Imported gas (200 bcf LNG in FY2018) is 15% of our indigenous gas production. We paid $4.3 billion for the crude oil imports and over $2 billion for gas (LNG) in FY2018.”

 

[ghazi52]

Big news' expected as Pakistan undertakes oil and gas exploration off Karachi

Maritime Minster Ali Haider Zaidi on Friday shared pictures of activities at the Karachi port exploration.

Pakistan's new government is hopeful that the country would succeed in exploring vast reserves of oil and gas off Karachi coast.

Prime Minister Imran Khan in his recent speeches also spoke of the natural resources Pakistan can explore in the coming days with the help of some international companies.

Maritime Minster Ali Haider Zaidi on Friday shared pictures of activities at the Karachi port ahead of exploration work.

The minister also posted a picture of ships anchored at the port. "Supply ships transporting equipment to “Mother of All Rigs” docked 230 km off the Karachi coast for exploration of oil & gas arrived at KPT.

He wished best to the ExxonMobil and ENI, the companies who are undertaking the drilling,

"let us all pray for a global discovery. From the looks of it, big news Inshallah," he wrote on Twitter

 

[ghazi52]

 

[Crystal-Clear]

Insha Allah

 

[Pakistansdefender]

Ya Allah Madat.
Allah se yehi dua ker sakta hain ke gas and oil nikla and logoon tak phunch saka.
Can anybody tell me, is offshore reserves in sea belongs to Pakistan federal government or Sindh government?

 

[truthseeker2010]

Here is the "mother ship" the drilling ship saipem 12000 chartered by ENI for pak offshore drilling:

 

[ghazi52]

World’s Biggest Oil and Gas Company Re-Enters Pakistan After 27 Years

World’s largest oil and gas company ExxonMobil, has re-entered Pakistan after a gap of nearly three decades. ExxonMobil’s offshore deep sea drilling equipment has just reached the Karachi Port.

A source told that ExxonMobil’s offshore drilling equipment includes a SIAPAM mothership with a RIG and three supply vessels docked at Karachi Port.

These ships will start their drilling operations from Jan 6, 230 KM from Karachi coastline in open sea. The drilling activity will be done at a depth of 6200 feet. This is the first operation of ExxonMobil in Pakistan after 27 years, the company exited the country in 1991 after a change in its policy.

ExxonMobil has opened a new venture office in Islamabad on Nov. 27, 2018, to start oil and gas explorations activities in the country.

The company holds a 25 percent interest in Block G located offshore Pakistan which is operated by Eni Pakistan Limited. ExxonMobil is working with its partners and the government of Pakistan.

In Jan 2010, the first attempt was made for hydrocarbon exploration in Pakistan. Shark 1 is the first exploratory well, being drilled in Indus ‘M’ Block, located 87 KM south-west of Karachi. The Block is a joint venture (JV) between ENI with a 70 percent working interest, and PPL holding the remaining 30 percent.


Liquefied Natural Gas (LNG)

ExxonMobil and the Pakistani consortium Energas signed an agreement to support the development of a liquefied natural gas (LNG) import terminal and to support securing the supply of LNG.

The agreement is an important milestone for the project, which will help meet the country’s energy needs and drive economic growth by providing a reliable supply of cleaner-burning natural gas.

ExxonMobil is working and cooperating with all the stakeholders to help realize this strategically important project for Pakistan

 

[ghazi52]

Abu Dhabi likely to invest $1b in oil storages, pipeline

January 6, 2019

ISLAMABAD: Pakistan and Abu Dhabi are likely to sign a deal for investment of $1 billion by the emirate in setting up oil storages at Gwadar Port and laying a white oil pipeline during visit of Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan beginning on Sunday.

United Arab Emirates (UAE) had agreed to invest $1 billion through Mubadala, a global investment company. With this capital injection, the total UAE assistance and investment package for Pakistan will rise to $7.2 billion. It also includes a $3.2-billion oil credit facility and $3 billion in cash support for balance of payments.

Abu Dhabi has already invested in Pak Arab Refinery (Parco) in joint-venture partnership with Pakistan government and it is the largest oil refinery in Pakistan. Parco is also setting up a coastal oil refinery in Balochistan and is seeking financing for pouring capital into the project.

However, Pakistan’s government is looking for funding for oil storage and white oil pipeline projects.

Officials revealed that during negotiations with Abu Dhabi authorities in the UAE, Pakistan accorded priority to establishing oil storage facilities at Gwadar Port and building a white oil pipeline between Sheikhupura and Peshawar.

Abu Dhabi agreed to invest in these two projects but Parco management was lobbying to divert the funding to its new coastal refinery project in Balochistan.

The Economic Coordination Committee (ECC) has already approved a tariff for the white oil pipeline. The ECC was told that the quoted composite tariff was about 60% lower than the present trucking rate. It would lead to savings of Rs 100 billion for the national exchequer, bring the cost down for oil consumers and reduce the number of accidents involving oil tankers.

In the past, some oil tankers had met fatal accidents in which hundreds were killed and these could be avoided in future after the laying of the white oil pipeline, which would provide a safe and efficient way for the supply of petroleum products.

Oil tanker owners had also staged strikes in the past by stopping oil supply across the country, sparking widespread concerns. They have also been allegedly involved in oil theft at different depots of Pakistan State Oil (PSO) and power plants.

At present, Pakistan has inadequate oil storage facilities. It has 59 oil marketing companies but only PSO and Shell have storages for petrol and diesel in order to meet any emergency situation.

Officials were of the view that economic activities in Gwadar would swell with the passage of time where the building of oil storages would be a key requirement. The importance of oil tanks grows further, according to the officials, when plans for setting up some refineries in Gwadar are taken into consideration.

 

[Maxpane]

so no new oil refinery?

 

[ghazi52]

so no new oil refinery?

Might not be.

 

[Maxpane]

Might not be.

so all that fuss and nothing came out . really bad sir

 

[ghazi52]

Saudi delegation reaches Gwadar to inspect land for oil refinery
january 12, 2019



Saudi Minister for Energy, Industry and Minerals Khalid Abdul Aziz D Al Falih.

A Saudi delegation headed by Saudi Minister for Energy, Industry and Minerals Khalid Abdul Aziz Al Falih arrived in Gwadar on Saturday to inspect the land allocated for a proposed oil refinery, Radio Pakistan reported.

On his arrival, Federal Minister for Petroleum Ghulam Sarwar Khan welcomed the Saudi minister.

Speaking on the occasion, Ghulam Sarwar Khan said that, “Pakistan and Saudi Arabia have a distinctive relationship,” adding that the state-of-the-art oil refinery is the biggest investment project of Saudi Arabia in Pakistan.

Sarwar added that during the upcoming visit of the Saudi crown prince to Pakistan in February, a Memorandum of Understanding (MOU) regarding the oil refinery will also be signed.

Pakistan and Saudi Arabia are likely to ink today an agreement to install the Saudi Aramco Oil Refinery at the oil city located in Balochistan Gwadar district.

Saudi and Pakistani authorities will also sign a memorandum of understanding (MoU) to set up $10 billion oil refinery at the deep seaport which is also the terminal point of the multi-billion dollar China-Pakistan Economic Corridor (CPEC) project.

The Pak Arab Refinery (Parco), a joint venture between Pakistan and Abu Dhabi, is also working on Khalifa refinery project with a total refining capacity of 250,000 barrels per day. At present, Parco is the largest refinery in Pakistan that has refining capacity of 100,000 barrels per day.

Officials said Saudi Arabia and the UAE had announced the same packages for Pakistan and Riyadh was likely to set up a refinery with a capacity of 250,000 barrels per day. At present, the total refining capacity of Pakistan is around 300,000 barrels per day.

The previous Pakistan Muslim League-Nawaz (PML-N) government had allowed the Frontier Works Organization (FWO) to build an oil pipeline from Gwadar to China at an estimated cost of US$10 billion.

Officials believe that Pakistan is going to become a hub of oil trade after setting up these two refineries, which would not only meet Pakistan’s requirement but would also export petroleum products to China.

Annual demand of petroleum products has been forecasted be 50 million tons in 2030 calculated at the GDP growth of 5% because of rising demand of oil due to CPEC activities.

The current demand of petroleum products has been estimated at 29.6 million tons in 2018. In 2029-30, the deficit of petrol and high speed diesel has been estimated to grow to 14 million tons per annum (MTA) and 16 MTA, respectively against the current deficits of 5 MTA and 4 MTA, respectively.

Officials said Pakistan side would also give a list of some other proposed projects to the Saudi delegation. Islamabad wants Riyadh to invest in mineral sector projects like Reko Diq, oil storages in Gwadar and oil pipeline projects in Pakistan.

Pakistan authorities hope that Saudi Arabia would invest US$15 billion in mineral, oil and gas sector projects. Saudi Arabia has also committed annual credit oil facility of US$3.2 billion for three years to support Pakistan’s balance of payment.

 

[ghazi52]

After nine years, offshore drilling begins in Karachi ultra-deep waters
January 12, 2019

ExxonMobil is drilling Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast.

KARACHI: Pakistan, after a gap of nine years, begins offshore drilling to find estimated huge oil and gas deposits in ultra-deep waters at an estimated cost of over $100 million.

“The drilling is scheduled to commence tonight (Friday),” an official at the ministry of petroleum told The Express Tribune on Friday.

The US firm ExxonMobil, one of the world’s largest oil and gas firms, in collaboration with Italian firm Eni Pakistan Limited, is drilling in ultra-deep waters some 280 kilometres away from Karachi coast.
“Eni Pakistan has estimated nine trillion cubic feet gas deposits,” the official said, adding “ExxonMobil expects oil deposits there.”

They are drilling Kekra-1 well in Indus-G block, which is located some 280 kilometres away from the Karachi coast.

They would drill around 5,800 meters deep from the sea level and are targeting to complete the spud in the next 60 days.

For this purpose, ExxonMobil has brought one major drilling ship, three supply vessels and two helicopters on the site.

Eni Pakistan is the operator of the block, while, Exploration and Production Pakistan BV (EEPP) is drilling the well. Besides, Pakistan state-owned Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) are part of the joint venture. Each of the four firms have a 25% participating interest in the block.

The well is being drilled almost after a gap of nine years, as the last exploratory well in offshore area was drilled in January 2010. This is the 18th attempt to find hydrocarbons from deep waters in Pakistan.

“Earlier, Pakistan has drilled 17 times in deep sea. The wells were either found dry or not commercially viable to be operated,” the official said.

Some of the surveyors find the block ‘Indus-G’ similar to Indian offshore Bombay High oil fields, which produces 350,000 barrels per day (bpd) of crude oil, while some define it like wells producing hydrocarbons in the oil and gas rich country, Kuwait in the Gulf.

Exxon Mobil Corporation, through ExxonMobil Exploration and Production Pakistan BV (EEPP), had acquired 25% participating interest in May 2018 in Offshore Indus-G Block.

Pakistan meets around 15-20% of its energy needs through local oil and gas exploration and production, while the rest is met through expensive imports.

The oil and gas imports cost Pakistan around one-fourth of the total import bills per year. The country has emerged as one of the largest gas (liquefied natural gas) importers in the last couple of years at the world level.

 

[ziaulislam]

so all that fuss and nothing came out . really bad sir

Fuss was about saudi oil refinery