KP inks an oil exploration accord for North Waziristan

PESHAWAR: The Khyber Pakhtunkhwa government on Wednesday signed an oil exploration agreement for the Miran Block in North Waziristan.

The signing ceremony took place at Khyber Pakhtunkhwa House in Islamabad with Chief Minister Ali Amin Gandapur attending as the chief guest, said a handout issued here. The event was also attended by Special Assistant to the Chief Minister on Energy and Power, Tariq Sadozai, along with senior officials from the Federal Ministry of Petroleum, the KP Energy Department, and partner companies.

The agreement was signed between Khyber Pakhtunkhwa Oil & Gas Company Limited (KPOGCL) and a consortium comprising Oil & Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL). Under the terms of the deal, KPOGCL will hold the largest stake in the Miran Block, owning 51percent of shares, while the remaining 49 percent will be owned by the OGDCL-led consortium. Similarly, KPOGCL will also receive 51 percent of the profits generated from the project.

The consortium is set to invest Rs20 billion in the exploration project over the next three years, with the entire investment coming from OGDCL and other consortium partners. Notably, in case of any financial losses, the provincial government will bear no financial burden. During the briefing at the ceremony, officials highlighted strong prospects of discovering significant oil and gas reserves in the Miran Block.

Speaking at the event, the chief minister emphasized the strategic importance of the exploration deal, stating that it is not just a milestone for KP but for the entire country.He expressed optimism that the discovery of oil and gas reserves in the Miran Block would help address Pakistan’s ongoing energy crisis. Congratulating KPOGCL, OGDCL, and the other consortium partners, the chief minister said the agreement marked the beginning of a major success.

Gandapur stated that the project would usher in a new era of development and prosperity in the region, creating employment opportunities and contributing to the eradication of militancy.Highlighting the untapped potential of KP’s natural resources, Gandapur criticized past policies for failing to fully harness these assets. “Despite having vast hydropower resources, we still rely on imported furnace oil and LNG for power generation,” he noted. The Chief Minister lamented the country’s heavy debt burden, which has reached PKR 76 trillion, and stressed the need for a collective strategy to overcome financial challenges.

Gandapur reaffirmed KP’s crucial role in meeting Pakistan’s energy needs, stating that the province contributes 42 percent of the country’s total crude oil production, 13 percent of its natural gas output, and 40 percent of its LPG production.