Pakistan Seeks $15 Billion in Oil Investments, Aims to Streamline Economy

Pakistan's natural resources minister, Anwar Saifullah Khan, is on a Canadian tour to attract foreign capital, particularly from the energy sector. Khan emphasizes the need for investment in the country's oil refineries, pipelines, and storage facilities, citing a significant gap between oil demand and production. Pakistan uses approximately 280,000 barrels per day (b/d) of oil, but only produces 58,000 b/d, and its natural gas production is 1.8 billion cubic feet per day (Bcfd), while demand stands at 3 Bcfd.

Key Takeaways:

• Pakistan's energy demand is growing at an annual rate of 8%, with a current oil demand exceeding 280,000 b/d and natural gas demand of 3 Bcfd.
• The country's oil production stands at 58,000 b/d, while its refineries have not seen a new build since 1970, with a sole functioning refinery.
• The Pakistani government aims to loosen economic controls, privatize pipelines, lift caps on refinery profits, and reduce the government's stake in the national oil and gas company.
• Khan has secured 41 concession agreements in the last 10 months, which are expected to generate up to $500 million in revenue over the next 3-5 years.
• Pakistan has partnered with Abu Dhabi to develop an $800 million refinery, seeking foreign company involvement for its operation.
• The government's goal is to attract $15 billion in oil investments and reduce bureaucracy to stimulate foreign capital entry.

Statistics:

• Pakistan's energy demand growth rate: 8% per year.
• Current oil demand: 280,000 b/d.
• Current natural gas demand: 3 Bcfd.
• Pakistan's oil production: 58,000 b/d.
• Refinery agreements secured since 1970: 1.
• Concession agreements in the past 10 months: 41.
• Expected revenue from concession agreements: Up to $500 million over 3-5 years.
• Expected investment in oil refineries: $15 billion.
• Abu Dhabi refinery investment: $800 million.

Sources:

• "Pakistan Seeks US$15 Billion in Oil Investments."