Pakistan Oil & Gas Today

Pakistan is the 20th largest gas consumer in the world and has an established natural gas industry
The largest producers are government-owned OGDCL, Pakistan Petroleum Ltd. (“PPL”) and Mari Gas Company Ltd. (“MGCL”)
Recent licensing rounds have seen 60 blocks offered in 2014, 10 in 2018, and at least 10 blocks expected to be offered soon to investors
Pakistan’s Oil & Gas Regulatory Authority expects demand of c. 7 bcfd in 2019-2020, almost double the country’s current production
The government continues to seek ways to incentivize domestic activity

January 2019, the government exempted customs duty for the import of drilling rigs, vessels and other equipment
A new advisory council established to promote a new wave of investment and activity in the oil and gas sector to boost domestic production
The pipeline system is being re-evaluated with plans to increase deregulation and access
Future changes could include NOC divestments, increasing domestic gas prices closer to that of imported LNG and the introduction of measures that ensure auction rights are unaffected by government or policy changes