Tag: oil facility

  • Pakistan aims to enhance Saudi oil facility to $3.6 billion

    Pakistan aims to enhance Saudi oil facility to $3.6 billion

    A spokesperson for the Petroleum Division said that Pakistan is in talks with Saudi Arabia to increase the size of an oil facility on deferred payments from its current $1.2 billion to $3.6 billion.

    According to The News, when former Prime Minister Imran Khan visited Riyadh in October of last year, Saudi Arabia made a $4.2 billion support agreement, which included a $1.2 billion oil loan facility for Pakistan.

    Syed Zakria Ali Shah, joint secretary of international and joint ventures at the Pakistani petroleum division, revealed that the division was attempting to increase the value of its current facility with Saudi Arabia from $1.2 billion to $3.6 billion.

    Pakistan receives monthly oil deliveries worth $100 million under the current Saudi oil facility with deferred payment. Oil prices were low when the deal was struck, but because of their exponential rise, we are currently negotiating with the Saudis to increase their oil facility from $100 million to $300 million every month.

    A member of the Islamic Development Bank (IsDB) group, the International Islamic Trade Finance Corporation (ITFC), Shah claimed Saudi Arabia was also assisting Pakistan in using another existing oil financing facility.

    The last framework agreement for this facility was signed between our economic affairs division and ITFC on February 21, 2022, according to Shah. “The government of Pakistan has this facility for oil and liquefied natural gas (LNG) imports under the framework agreement with ITFC since 2017–18,” he said.

    The facility will cost a total of $4.5 billion over three years, from 2022 to 2024, or roughly $1.5 billion per year on a best-effort basis, the official continued.

  • Pakistan starts oil and gas production from Dhok Sultan DS X-1

    Pakistan starts oil and gas production from Dhok Sultan DS X-1

    Pakistan’s state-owned natural gas and petroleum products supplier Pakistan Petroleum Limited (PPL) has started production from the recently installed Oil Handling Facilities (OHF) in the Dhok Sultan Block in Punjab province.

    The business claimed in a filing on May 6 that it is the operator of the Dhok Sultan Block and owns 75 per cent of the working interest, while Government Holdings (Private) Limited (GHPL) owns 25 per cent.

    As per the filing, The present production figures from DS X-1 are 5 MMscfd gas, 3000 bbls/day oil, and 25 M.Ton/day LPG. The Dhok Sultan OHF is in charge of oil production, while the Meyal Gas Processing Facilities (MGPF) of Pakistan Oilfields Limited (POL) in District Attock is in charge of gas processing.

    The gas production from this facility will go to Sui Northern Gas Pipelines Limited, while the oil will go to Attock Refinery Limited, according to the business.

    This finding is currently in the Extended Well Testing (EWT) production phase, and the data obtained during this phase will aid in its continued development. Through indigenous hydrocarbon production, the start of production from DS X-1 will contribute to increasing energy security and saving significant foreign cash for the country, according to the company.

    Considering the high demand, Pakistan’s economy is significantly reliant on fossil fuels, with petroleum products and other fuels accounting for a large portion of the country’s import bill.

    Read more: Pakistan’s foreign currency reserves down by $328 million

    Due to its surge in the global market, Pakistan’s oil imports have increased dramatically in recent months. The overall petroleum group’s imports were $14.812 billion in the first nine months of the current fiscal year (2021-22), up from $7.553 billion in the same time in 2021.