Indigenous oil and gas resources - Balochistan remains a hidden gem.

• Author: Fazl-E-Haider, Syed

Byline: Syed Fazl-E-Haider

Pakistan imports Liquefied Natural Gas (LNG) to meet the demand of the country's power sector. The gas indigenously produced stands at 4 billion cubic feet per day (bcfd) against total demand of 6 bcfd. The country has to import 1.2 bcfd LNG to meet the domestic requirements. The rapid depletion of existing hydrocarbon reservoirs in the country indicate that deposits would further deplete by 60 percent by the year 2027. Hence, there is a dire need for accelerating exploration activities in Balochistan's potential areas on war-footing. Strategically located province is surrounded by the countries like Afghanistan, Iran, and Arabian Gulf states, which are rich in oil and gas reserves. While on one hand it is located in midst of oil and gas reserves, on the other the most important international sea routes pass by the Balochistan coast.

The province has the country's extensive oil and gas reserves. Out of the country's estimated 25.1 trillion cubic feet (tcf) of proven gas reserves, 19 trillion are located in Balochistan. According to another estimate, out of the country's proven oil reserves of 300 million barrels, largely are located in the province. Other sources place its oil reserves at an estimated six trillion barrels of oil reserves both on-shore and off-shore. Balochistan offers great opportunities in oil and gas exploration sector for local and foreign investors. The exploration projects can open up the province converting it into a land of opportunities for foreign investors.

Present government of Prime Minister Imran Khan has made some policy changes to facilitate new companies in the exploration and production sector for getting approval to start drilling activities in potential areas. At present, the country's total sedimentary area is around 827,268 square kilometers, out of which 320, 741km is under exploration. It has focused on exploration of indigenous oil and gas reserves. No doubt, the exploration option will be more practical and viable in economic sense and it would also be rational to explore the indigenous energy resources than to go for import of gas from other countries.

It has also been observed that gas available from the new discoveries made by foreign companies is much costly than the gas produced by the Pakistan Petroleum Limited (PPL) at Sui in Balochistan. In July 2015, former Balochistan chief minister Dr Abdul Malik Baloch had imposed a ban on new projects of oil and gas...