ISLAMABAD: Newly appointed Petroleum Minister Ali Pervaiz Malik has pledged to address long-standing challenges in Pakistan’s oil and gas sector, which have hampered indigenous exploration and production activities. The move follows the removal of former minister Musadik Malik, whose bureaucratic approach was widely criticized for creating bottlenecks instead of solutions, prompting Prime Minister Shehbaz Sharif to intervene by forming a high-level gas committee led by Deputy PM Ishaq Dar.
Among the foremost challenges is the finalisation of a model agreement for tight gas, which remains unsigned despite Oil and Gas Development Company Limited (OGDCL) historically injecting tight gas into the system under a provisional pricing arrangement. OGDCL holds ownership of 82 out of 84 tight gas wells in the country but had received no formal policy notification from the previous ministry.
The new minister is also expected to tackle the lack of a pricing framework for shale gas, which has discouraged exploration despite sufficient reserves. Industry stakeholders are hopeful that fiscal incentives will be introduced to boost shale gas activity.
Another pressing concern is the circular debt crisis, which continues to choke cash flows and deter exploration and production efforts.
Ali Pervaiz Malik recently met with representatives of the Pakistan Petroleum Exploration and Production Companies Association (PPEPCA), led by Chairman Taha Ali Temini of KUFPEC. The minister affirmed the government’s commitment to a business-friendly environment and recognized PPEPCA’s critical contribution to national energy security.
PPEPCA members, including heads of Mari Energies, United Energy Pakistan, Orient Petroleum Inc., and others, appreciated the minister’s proactive stance and expressed optimism about increased collaboration to promote investment and ensure sustainable sectoral growth.
The meeting concluded with a shared resolve to foster public-private partnerships for a resilient and self-reliant petroleum sector in Pakistan.
Story by Zafar Bhutta
