ExxonMobil Close to Gaining Huge Oil Reserves In Pakistan, Bigger Than Kuwait.
Huge oil reserves have been discovered in Pakistan
The US energy giant has been successful in drilling up to 5,000 meters near the Pakistan-Iran border as has been narrated by the Pakistan Foreign Minister. If the oil reserves are discovered according to expectations, Pakistan can become one of the Top 10 oil-producing countries in the world, exceeding Kuwait at number 6.
According to Pakistan’s caretaker Minister for maritime affairs and foreign affairs, Abdullah Hussain Haroon says that ExxonMobil, the American multinational oil, and gas company is close to hitting huge oil reserves close to the Pakistan-Iran border which will even be greater than the Kuwaiti reserves.
If they are successful in finding the expected oil reserves, which till now they are very optimistic of, Pakistan will be ahead of Kuwait as the world’s 10 most oil producing countries.
Kuwait’s oil reserves total up to 8.4% of the oil reserves in the world. Kuwait claims to hold about 101.50 billion barrels, including half of five billion barrels in the Saudi-Kuwaiti neutral zone which Kuwait shares with Saudi Arabia.
According to recent estimates, 81.89% of the world’s proven oil reserves are located in OPEC member countries, with the majority of OPEC oil reserves in the Middle East, amounting to 65.36% of the OPEC total.
Mister Haroon also informed us that his government has already confirmed an undertaking from ExxonMobil to put up a generation complex worth $10 billion. He also added: “They are also putting up an LNG berth at Port Qasim, the second seaport in Karachi. They have already paid for the drilling rights in Pakistan,” and said, “Pakistan is providing a level playing field to foreign investors and they are interested in coming to Pakistan. What we need to do is to meet their standards and attract them to make the investment.”
Since May 2018, ExxonMobil has acquired 25% stakes in offshore drilling in Pakistan and the agreement was signed at the Prime Minister’s Secretariat among ExxonMobil, Government Holdings Private Limited, PPL, Eni and the Oil and Gas Development Corporation. This agreement has led to a reduction of 25% in the drilling hare of other partner exploration companies.
Haroon says that Pakistan is being drawn into the US-China trade war but the country is trying to maintain its impartiality, he also added that “When we sought a much-needed external loan from China, which they initially had refused, the US expressed its annoyance.”
Pakistan is only successful in meeting 15% of is domestic petroleum needs with the production of crude oil up to 22 million tons, while the rest of the 85% is met through imports. Due to this, the country faces huge account deficit of $18 billion as it spends these foreign reserves on the import of oil. It is to be noted how the import bill of Pakistan rose by to $12.928 billion in the July-May 2017-18 period of the last fiscal year.
Our Foreign Minister also discussed the current issue of water crisis the country is facing and how it has affected the Indo-Pak relations he said: “India is acting to control water flows which would endanger Pakistan’s food security and they would ruin our crops.”
Haroon has called for the integration of Port Qasim and Karachi port so that they are capable of supplementing each other for the larger interest of the country. He also laid emphasis on the need for a new fish harbor as the existing one has issues and there is a shortage of land. He expressed his regret on the fact that the harbor is not well looked after and efficiently functional and he hoped the European Union will help by providing subsidies for building a new one.