Wellhead prices to be elevated from USD 4.38-5.03/mmbtu to USD 6/mmbtu: – Alfalah Securities Limited

Karachi: The government is determined to increase wellhead prices in order to attract local and foreign investors in the oil and gas exploration sector from USD 4.38-5.03/mmbtu to USD 6/mmbtu, keeping in view the trend of international gas and oil exploration prices.

According to Alfalah Securities Limited, the government would offer shallow discovery at a price of USD 7/mmbtu, deep discovery at USD 8/mmbtu and ultra deep discovery at USD 9/mmbtu while, the first three offshore discoveries would be offered a premium of USD 1/mmbtu. Moreover, Government has estimated that about 200mmcfd gas would be added to the system by the end of current calendar year of which, 100mmcfd would be added from Kunar Pasaki gas field, 30mmcfd from Sinjhoro gas field, 25mmcfd from Miano Latif gas field and 20mmcfd from Nehmat-Baisal gas field and 12 mmcfd from the Adam gas field. These measures are taken to incentivize exploration activities amid rising shortfall of gas in the country.

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