Sunday, 14 September 2008

Pakistan’s Oil and Gas reserves

Pakistan’s extensive oil and gas reserves, largely located in Balochistan province, as well as its pipeline corridors are considered strategic by the Anglo-American alliance, requiring the concurrent militarization of Pakistani territory.

Balochistan comprises more than 40 percent of Pakistan’s land mass, possesses important reserves of oil and natural gas as well as extensive mineral resources.

The Iran-India pipeline corridor is slated to transit through Balochistan. Balochistan also possesses a deap sea port largely financed by China located at Gwadar, on the Arabian Sea, not far from the Straits of Hormuz where 30 % of the world’s daily oil supply moves by ship or pipeline. (Asia News.it, 29 December 2007)

Pakistan has an estimated 25.1 trillion cubic feet (Tcf) of proven gas reserves of which 19 trillion are located in Balochistan. Among foreign oil and gas contractors in Balochistan are BP, Italy’s ENI, Austria’s OMV, and Australia’s BHP. It is worth noting that Pakistan’s State oil and gas companies, including PPL which has the largest stake in the Sui oil fields of Balochistan are up for privatization under IMF-World Bank supervision.

According to the Oil and Gas Journal (OGJ), Pakistan had proven oil reserves of 300 million barrels, most of which are located in Balochistan. Other estimates place Balochistan oil reserves at an estimated six trillion barrels of oil reserves both on-shore and off-shore (Environment News Service, 27 October 2006) .



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