17 Non-performing E&P Licences Revoked

17 non-performing E&P licences revoked

ISLAMABAD, Nov 4 (Pakistan Point News - 04th Nov, 2016 ) : Ministry of Petroleum and Natural Resources has revoked 17 non-performing licences of oil and gas companies failing to start exploration and production (E&P) activities as per their commitment, a senior official of the Ministry confrimed here Friday. "We have revoked 17 such licences so far and permits of all oil and gas companies failing to start exploration activities with warning that as per their obligation will be canceled," he told APP.

The official also informed that the ministry's drive against non-performing oil and gas exploration companies was continuing as notices were being issued to more inactive licence-holders. He said the government, keeping in view the prevailing energy situation, had tightened the noose around non-performing companies, who obtained the licences and were unable to initiate exploration work. He said the action was being taken against the inactive E&P companies holding licences for last several years without any ground work.

"More inactive licences will be revoked shortly after completing all formalities," hey added. To a question, the official said licences were not canceled instantly, rather such companies were given notices and provided an opportunity to present their cases, adding that all the process was completed in a transparent manner before revoking licences. He said the ministry had recently signed 70 Supplemental Agreements for conversion to Petroleum Concessions Agreements aimed at expediting oil and gas exploration activities in potential areas of the country.

Responding to another question, he said the ministry was in the process to award 32 new blocks to oil and gas companies to step up exploration activities in different parts of the country. "Under the petroleum policy 2012, 46 new blocks have already been awarded, while the clearance process has been initiated for award of 32 more exploration blocks to E&P Companies through a transparent bidding process," he remarked.