Two Chinese firms agree to invest in Pakistan’s oil and gas sector

China Petroleum & Chemical Corporation (Sinopec) and Poly-GCL, two Chinese oil and gas companies, have agreed to invest in Pakistan’s oil and gas sector. The two firms will invest in the drilling and development of the country’s untapped shale gas reserves.

A five-member delegation headed by Zahid Mir, Managing Director of Pakistan’s multinational oil and gas company, Oil and Gas Development Company Limited (OGDCL), visited China recently to woo Chinese companies to invest in Pakistan. The delegation held discussions with the administration of both companies, which are already busy in oil and gas sector of countries like Ethiopia and Middle East.

Pakistan would offer onshore blocks situated in parts of Sindh and Balochistan which are rich with shale gas reserves, a source said. China has asked the OGDCL delegation to come to China and develop the natural reserves that had already been discovered because OGDCL has skilled manpower and expertise as well, the source added.

A spokesman from OGDCL has confirmed that the OGDCL delegation has returned to Pakistan after holding discussions with the Chinese counterparts, and hoped that China would soon start investing in the oil and gas sector,particularly in shale gas.

Shale gas reserves are abundant in Pakistan but the shortage of funds and lack in expertise remain to be the major hurdles in discovering the natural gas reserves, the spokesman added.He said Pakistan’s oil and gas sector has a potential to change the country’s future.

Pakistan’s Petroleum Ministry has also been informed about the discussions held with Chinese companies and their willingness to invest in the country.