Russian giant ready to join oil, gas exploration in Pakistan

ISLAMABAD: In a positive development, TatNeft – a Russian state owned oil and gas company that has so far drilled 50,000 wells all over the world is ready to join oil and gas exploration activities in Pakistan in a big way.

The top officials of the said Russian Company came up with their willingness in becoming part of the E&P activities in Pakistan in a meeting of Pakistan Russian Joint Working Group (JWG) on Energy that met here on Monday. It was the 7th meeting of JWG on Energy between the two countries, a senior official who was part of meeting told The News.

The meeting participants discussed oil and gas sector, gas pipelines, power projects and barrages and dams.

In the meeting, Russia was represented by Talyat Aliev, deputy head of department, Ministry of Energy of the Russian Federation whereas Joint Secretary Petroleum Division Syed Tauqir Hussain represented Pakistan. This meeting was the part of Inter-Governmental Commission (IGC) between the two countries. A 64-member delegation headed by Minister for Trade and Industries for the Russian Federation Denis V Manturov is visiting Pakistan for four days from December 8 to 11 to attend an Inter-Governmental Commission. Both sides will find out more avenues in cooperation on trade, economic, scientific, and technical areas in IGC meetings. The Joint Working Groups of the countries on Trade and Industry will also meet today (Tuesday).

However, the official said that since its emergence, in toto 1100 oil and gas wells got drilled in Pakistan when it comes to comparing the total wells of 50,000 spud by TatNeft alone. More importantly Bank of New York owns 23 percent shares of TatNeft company, and the government owns 34 percent and over 40 percent shares doled out in Moscow Stock Exchange and London Stock Exchange.

In today’s meeting, the official said, it is also mentioned that subsequent to signing of Inter-Governmental MoU on cooperation for implementation of Offshore Gas Pipeline Project on September 27, 2018, the nominated entities – Public Joint Stock Company Gazprom from Russian side and Inter State Gas System (Pvt) Limited from Pakistan side – signed Inter Corporate MOU on 6th February 2019.

In the meeting, both sides agreed that the nominated entities will expedite execution of the relevant documents and initiate the requisite studies in the near future.

In the oil and gas sector, it is agreed that since the signing of MoU in July 2017 between PJSC Gazprom and Oil & Gas Development Company Limited (OGDCL), there is a need to expedite progress on the mutually beneficial projects by both sides.

Both sides encouraged their respective nominated entities Gazprom International and OGDCL to jointly work on the envisaged areas of cooperation. It was noted that Gazprom International is currently reviewing Rajian Field of OGDCL for possible Enhanced Oil Recovery (EOR) application whereas OGDCL is in the process of evaluating an opportunity in Algeria in which Gazprom is the Operator and OGDCL intends to be JV partner.

The official said, that the Russian side informed of the interest of PJSC NOVATEK to discuss LNG supplies to Pakistan from the portfolio of the company. The official said that Pakistan side appreciated the interest of PJSC NOVATEK and encouraged it to participate in LNG tenders as and when announced.

The Russian side informed about the interest of the Russian State Geological Holding ROSGEO to establish cooperation with the governmental bodies and organisations of Pakistan and expand cooperation in the field of geological exploration with Pakistani institution.

Both Sides appreciated the offer of cooperation of the Russian State Geological Holding ROSGEO for the Pakistani institutions in the creation of a scientific and computational center in Islamabad for the processing and interpretation of geological and geophysical data.

Pakistan side proposed Geological Survey of Pakistan (GSP), Oil and Gas Development Company Ltd (OGDCL) and Pakistan Petroleum Limited (PPL) as counterpart entities to further discuss the proposal in detail with Russian State Geological Holding ROSGEO. Both Sides expressed support for the training and professional development of the specialists in Pakistan in the field of oil and gas business on the basis of joint programmes of ROSGEO JSC and the Russian State Geological Exploration University named after Sergo Ordzhonikidze.

Pakistan side informed the Russian side about the forthcoming divestment of government of Pakistan shares in OGDCL and PPL also encouraged Russian side to consider participating in the process to become a strategic partner by acquire the shares.

Pakistan side informed that Pakistan Refinery Limited, a subsidiary of Pakistan State Oil Limited needs revamping and upgradation, any Russian companies which may be interested in equity participation and EPC+F for revamping and upgradation of the refinery may approach.

Coming to Power Sector, the official said that the Russian side expressed its interest to continue work on the inter-governmental agreement on implementation of project of construction of 600MW combined cycle power plant in Jamshoro and expect that Pakistan side will take positive decision on the issue of feasibility of the project from the point of expanding generation of electricity.

Both the sides support the interest of Inter RAO-Engineering to consider the possibility to participate in engineering projects of construction of power generation and rehabilitation of existing power generating capacities in Pakistan.

The Russian side confirmed the interest of Power Machines PJSC in developing cooperation with Pakistani companies in the construction of new and modernisation of existing electrical energy facilities, including Muzaffargarh TPP.

Pakistan side has a the training centre at Muzaffargarh and invited Russian side to participate in the same. Russian side informed that Russian company IED has expressed interest in developing the training centre at Muzaffargarh TPP.