POL prices move up
The government on Saturday raised the prices of petroleum products by up to Rs4.71 per litre, citing the rising trend in the international market. However, following directives of Prime Minister Nawaz Sharif, the government made a partial increase of Rs2.5 per litre in the price of high speed diesel (HSD), which is mostly used in agriculture and transport sectors. The summary sent to the prime minister had proposed an increase of Rs3.57 per litre in the HSD price. The government has given a subsidy of Rs1.07 per litre in the price of HSD to facilitate consumers following direction of the prime minister. The new price of HSD is Rs112.26 per litre. The price of petrol has gone up by Rs4.64 per litre, from Rs104.50 to Rs109.14 per litre. The price of kerosene, which is used as a fuel for stoves in remote areas where liquefied petroleum gas (LPG) is not readily available, has seen an increase of Rs4.71 per litre, bringing its price up from Rs101.28 to Rs105.99 per litre.
Govt earned Rs595bn from oil, gas in FY13
The government collected about Rs595 billion in different taxes on oil and gas in 2012-13, accounting for almost 31 per cent of total revenues collected by the Federal Board of Revenue at Rs1,936bn. As such, the oil and gas sector has emerged as the single largest contributor to Pakistan’s total revenue. According to final financial data reconciled by the Accountant General Pakistan Revenue (AGPR), the federal government was able to collect Rs110bn as petroleum levy on sale of petroleum products during the outgoing fiscal year against Rs60bn a year before, registering an increase of 83pc. Likewise, the government also collected Rs32.2bn as development surcharge on natural gas in 2012-13 compared with Rs23bn collected in the preceding year, showing an increase of 39pc. Similarly, an amount of Rs65.2bn was recovered on account of royalty on oil and gas during the year under review compared to Rs62.8bn a year before, a 4 per cent increase. In addition, the government also collected about Rs23.8bn as Windfall Levy against crude oil during the FY13 compared with no collection under this head a year before.
OMV discovers oil, gas at Mehar gas field
The Austrian Exploration and Production (E&P) Company OMV has announced discovering of 18 Million Cubic Feet per Day (MMCFD) gas and 1,550 barrel crude oil from Mehar gas field located in Ranikot area of Sindh. The presence of hydrocarbons was proven through wire-line logging and testing operations. During testing, a total of 18 MMCFD of gas plus an additional 1,550 barrels of condensate (Gross 4500 boe/d) flowed from the Ranikot formation. The Sofiya-2 exploration well is located in the Mehar exploration block in the Sindh, around 10km north of the Mehar gas and condensate field. OMV Maurice Energy Limited holds a 75 percent share in the exploration license; joint venture partners are Government Holding Private Limited (GHPL, 5 percent), Ocean Pakistan Limited (15 percent), and Zaver Petroleum Company (5 percent). The new discovery's proximity to the Mehar field provides the opportunity of using the Mehar gas and condensate plant for processing. The Mehar field development is in its mechanical completion phase; production start-up is expected in Q4/13.
SSRL raises investment for Thar projects
Sino-Sindh Resources (Pvt) Limited (SSRL) has reached a subscription and cooperation agreement with a consortium of investors consisting of Global Mining (China) Limited (GMC) and Asiapak Investments (Asiapak). SSRL is planning to develop coal mine with a capacity of 10 million tonne a year and integrated 1,200 MW mine-mouth power plant in Block 1 of Thar coalfields, in which the company holds a 30-year mining lease. The project cost is estimated at $2.6 billion for which a bankable feasibility has been completed through China Coal Technology and Engineering Group (CCTEG). SSRL was awarded the block, which covers around 150 square kilometres, after a round of international competitive bidding in September 2011. The block holds lignite coal resources of nearly 3.5bn tonne including 600m tonne of measured, 1.9bn tonne of indicated and 1bn tonne of inferred resources. Under the terms of the agreement, GMC will provide the equity funding for the project and will also arrange the required debt facilities from a consortium of Chinese banks.
PTA with Indonesia goes effective tomorrow
The Preferential Trade Agreement (PTA) between Pakistan and Indonesia will become operational from September 1, creating new opportunities for mutually beneficial exploration of the huge trade potential that exists between the two countries. The last hurdle in the actualisation of the PTA was affectively removed by the signing of Mutual Recognition Agreement on Plant Quarantine and SPS Measures in Jakarta on Friday. Pakistan Ambassador Sanaullah and Head of Indonesian Agricultural Quarantine Agency (IAQA) Mrs Banun Harpini signed the agreement, according to information made available here. Indonesia has signed MRA with only USA, Australia, New Zealand, Thailand and Canada. From South Asia, Africa, Europe and Middle East, Pakistan has become the first and the only country which will be able to export its fruit to Indonesia without subjecting it to Indonesian Quarantine Rules and Regulations.