Pakistan approves TPOC led consortium to operate offshore blocks

The adviser to the Finance Ministry said that Pakistan approved on Tuesday a new offshore exploratory consortium, allowing Turkish Petroleum Overseas Company (TPO) to assume operatorship of Eastern Offshore Block C as part of an effort to revive drilling.

The Economic Coordination Committee of Pakistan approved Pakistan Petroleum Limited’s request to transfer a portion of its stake in the block to TPOC Mari Energies, and state-run Oil & Gas Development Co Ltd. This left PPL with a 35 percent stake.

TPOC will own 25% of the block and operate it once a formal contract is signed.

Khurram Schéhzad, adviser to the Finance Ministry, said that the move would bring international offshore experience to Pakistan. This will enhance technical capability, operational efficiency and project delivery.

He said that the block has a prospect for drilling, which the consortium will pursue. This could bring in new foreign investment.

The consortium can now advance its preparations for drilling, he added, with the approval of the ECC.

In Pakistan's first round of offshore bidding since 2007, bids were received in October for 23 out of 40 offshore blocks, which covered around 53,500 sq km.

Since 1947, Pakistan's offshore zone of 300,000 square kilometers, which borders energy-rich Oman and the United Arab Emirates, as well as Iran, has only seen 18 oil wells drilled, far too few for it to be able to assess its hydrocarbons potential. Reporting by Ariba Sharif in Karachi, Editing by Alison Williams

(source: Reuters)