KP government to establish oil and gas company and oil refinery to get maximum benefit of oil and gas production

Peshawar: Provincial government of Khyber Pukhtunkhwa will establish oil refinery and oil and Gas Company to get maximum benefit of oil and gas production which expectedly to give Rs 22 billion revenue in royalty.

“Directors of the oil and gas company have been appointed and soon Board of Directors Meeting will be held to give practical shape to the company,” said provincial minister for planning and development Rahimdad Khan while briefing media about the performance of his department.

MoU for the establishment of oil refinery is in final stages, he said adding that the project will be established by joint venture of Provincial government, federal government PSO and private sector.

He said that oil and gas sectors has become a major source of revenue for the province therefore government is now fully focused on the development of the sector. “ we are expecting Rs. 22 billion as royalty of gas and oil being produced in the province,” he said.

Provincial government, he said has established Energy and Power department with mandate to look after hydel sector, oil and gas sectors, and renewable energy.

Rahimdad said that provincial government has developed a clear vision and has designed a Hydel Development Action Plan 20102021.

In hydel sector, he said total 24 new projects have been launched which will produce 2004 MW electricity and the completion of these projects will required 334.497 billion.

Provincial government has started three projects of short term, which will complete in 3 years and produce 56.20 MW electricity that will contribute Rs 2 billion revenue. Similarly 8 medium term projects will take 5 years in completion, generate 99.968 MW electricity and give Rs 18 billion revenue while 24 long-term projects will take 10 years in completion and will generate 1322 MW besides giving revenue of rupees 54 billion. In total 2004 MW electricity will be produced that will give Rs 74 billion revenue to the province,” he said.

He said that at present province is producing 7,806,263 million BBL oil whereas 124,853 MMCFt gas is being produced in the province while the estimated reserves of oil in Khyber Pukhtunkhwa is 1 billion barrel and estimated gas reserves are 4 Trillion CFT.

He said due to article 158 gas load shedding in the province has been finished as government has defended the case in Supreme Court and hired well know lawyers for this purpose.