Four Companies Commit $33.3 Million to Oil and Gas Exploration

In a significant move, the government has formalized Petroleum Concession Agreements and Exploration Licences for eight blocks, forging partnerships with four distinguished companies. The agreements mandate a substantial minimum investment exceeding $33.3 million by these Exploration and Production (E&P) companies within the next three years, signifying a noteworthy stride in the nation's energy sector.

As outlined in today's official press release, blocks showcasing discoveries are poised to attract investments amounting to several hundred million dollars. These financial injections are earmarked for the development of production capabilities, promising a positive trajectory for the sector.

Furthermore, the companies involved are bound by a commitment to allocate a minimum of $30,000 annually for each block towards social welfare schemes within their respective localities. This move is aimed at fostering positive social impact in the areas where exploration activities are conducted.

Executed Petroleum Concession Agreements (PCAs) and Exploration Licences (ELs)

During the signing ceremony, Minister for Petroleum, Muhammad Ali, asserted that these concerted efforts are anticipated to yield tangible benefits for the country in the form of augmented hydrocarbon reserves over the next few years. Minister Ali emphasized that the execution of Exploration Licences and PCAs is not merely a boost for the petroleum sector's investment landscape but also serves as a strategic step towards addressing the energy demand and supply gap.