Will join hands for offshore hydrocarbon exploration, mineral projects; delegation due today
ISLAMABAD:
Turkiye is going to emerge as a key partner of Pakistani firms in the energy sector as the two countries are set to sign multibillion-dollar deals for offshore exploration and mineral projects this week.
A high-level Turkish delegation, led by Minister of Energy and Natural Resources Alparslan Bayraktar, is arriving in Islamabad on Tuesday. Sources said that Pakistani firms and the Turkish Petroleum Overseas Company (TPOC) will ink an agreement for the Eastern Offshore Block-C. The Economic Coordination Committee has recently approved the transfer of operatorship to TPOC to kick off work on Block-C. The committee has approved 34% working interest for TPOC, 26% participating interest for Oil and Gas Development Company (OGDC) and 20% participating interest for Mari Energies.
“The Turkish firm and Pakistani companies will sign a commercial deal relating to the offshore block to kick-start exploration work next year,” an official said, adding that Petroleum Minister Ali Pervaiz Malik played a key role in forging the partnership.
Sources said that a Turkish delegation had already visited Pakistan to finalise a mineral deal, which would be struck during the upcoming trip.
“Though the Turkish firm is not part of the Reko Diq copper and gold mining project, it can get a lease for a mine on the same belt,” a source said. Pakistan has a 15km-long copper and gold zone in Balochistan where the Reko Diq project is located. The government has already granted a copper and gold mining lease on the same belt, and the Turkish firm is also keen to get the lease.
Following the acceleration of work on Reko Diq, many global investors are attracted towards mining projects in Pakistan.
While several companies have quit Pakistan in recent years due to the bureaucratic red tape, the participation of a Turkish firm in the energy sector rekindles hopes, which may encourage other investors to come and invest.
Earlier, Italy’s Eni had formed a joint venture with US giant ExxonMobil and Pakistani state companies including OGDC and Pakistan Petroleum Limited (PPL) for offshore oil and gas exploration during the previous government of Pakistan Tehreek-e-Insaf (PTI). But their efforts did not yield success.
Now, the Turkish firm has been picked as an operator after PPL failed to start work on the Eastern Offshore Block-C. The Turkish company will lead exploration activities in the zone.
Among state-owned companies, OGDC has been very active in boosting oil and gas exploration by utilising state-of-the-art technologies. Pakistani companies are also expanding their footprint in the global energy map. In the United Arab Emirates, they are searching for oil and gas reserves in offshore fields. Also, joint ventures with companies like Turkish Petroleum would give further international exposure to the Pakistani companies, industry officials said.
Meanwhile, Federal Minister for Petroleum Ali Pervaiz Malik held a meeting on Monday with Turkish Ambassador Irfan Neziroglu to finalise preparations for the Turkish delegation arriving on Tuesday, led by Minister of Energy and Natural Resources Alparslan Bayraktar. Secretary Petroleum Momin Agha and OGDC MD Ahmed Hayat Lak were also present in the meeting.
During discussions, Ali Pervaiz Malik said, “We are looking forward to welcoming the Turkish minister and his team to Pakistan. Their tour will play a transformational role in advancing bilateral cooperation in the energy and mining sectors.” The meeting reviewed the expanding collaboration between Pakistan and Turkiye in the energy, petroleum and mineral sectors. It was noted that Turkish Petroleum had joined offshore and onshore exploration activities in Pakistan – a major milestone in bilateral cooperation.
The ambassador remarked that a leading Turkish mineral company would be part of the delegation, reflecting Ankara’s strong interest in investing and partnering with Pakistan’s mineral development sector. Ali Pervaiz Malik highlighted that Pakistan’s leading exploration companies – OGDC, PPL and Mari Energies – had joined hands with Turkish Petroleum, which was creating new opportunities for joint ventures and would strengthen cooperation on the global stage.
