ISLAMABAD: In a significant development, the Khyber Pakhtunkhwa government signed a memorandum of understanding on Wednesday with various companies in the oil and gas sector. The agreement aims to facilitate the discovery of oil and gas in the Miran block, located in North Waziristan.
The signing ceremony took place at the Pakhtunkhwa House in Islamabad, with Chief Minister Ali Amin Gandapur serving as the chief guest. High-ranking officials from the Federal Ministry of Petroleum, the Energy Department of Khyber Pakhtunkhwa, and the partner companies attended the event.
Agreements were signed between the Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited, and Government Holding Private Limited.
Under the agreement, KPOGCL, as the sole holding company of the Khyber Pakhtunkhwa government, will own the largest share—51 per cent—in the Miran block. The remaining 49 per cent will be owned by OGDCL and a consortium of other companies. Additionally, KPOGCL will also receive 51 per cent of the profits from the said block.
An investment of Rs20 billion will be made over the next three years for this project, funded by OGDCL and the companies within the consortium. Importantly, the provincial government will not incur any losses in the event of a deficit in the investment.
There is a strong possibility of discovering significant oil and gas reserves in the Miran block. The signing of this agreement for exploration is important not only for Khyber Pakhtunkhwa but also for the entire country, according to Chief Minister Gandapur.
He highlighted that the oil and gas reserves in the Miran block could help alleviate the energy crisis in Pakistan and mark the beginning of substantial progress.
The Chief Minister congratulated KPOGCL, OGDCL, and the other companies in the consortium on this important achievement.
He expressed optimism that the exploration of the Miran block would usher in a new era of development and prosperity for the region, creating significant employment opportunities and helping to eliminate militancy.
Gandapur noted that although Khyber Pakhtunkhwa has abundant natural resources, past efforts had not adequately focused on utilizing them. Despite the province’s great potential for cheap hydroelectric power, electricity generation has often relied on imported sources such as furnace oil and LNG. He attributed the country’s current debt of Rs76 trillion to ineffective policies from the past.
To overcome this debt, Gandapur emphasized the need for a comprehensive action plan, suggesting that wise utilization of natural resources could lead the country toward self-sufficiency.
He pointed out that Khyber Pakhtunkhwa plays a crucial role in meeting the country’s energy demands, contributing 42 per cent of the national oil production, 13 per cent of the total gas production, and 40 per cent of total LPG production.
Lastly, the Chief Minister announced that three billion rupees had been allocated in the budget for the discovery of oil and gas reserves in the province. He assured that the provincial government would provide all possible security to the companies involved in the Miran block exploration.
