1. Oil and Gas Sector Reforms Syed Naveed Qamar Minister for Petroleum & Natural Resources Government of Pakistan Pakistan Development Forum Islamabad: November 15, 2010

2. 63 Million TOE Oil Import Bill: $10 billion Energy Mix Oil 32% Gas 48% Coal 7% Hydro 11% Nuclear 1% LPG 1%

3. YearOil (bpd) Gas (bcfd) 2010350,0002 2015550,0004 2020700,0006 Oil and Gas Shortfall

4. Oil and Gas Sector Highlights Investor friendly Exploration Policy introduced 2009 Independent Regulator for oil and gas – OGRA 27 E&P companies, 137 blocks, success ratio 1:3.3 68% electricity generation from oil and gas 100,000 km natural gas transmission and distribution network Gas consumers increasing at 7% per year Crude oil local production only 15% of demand 5 refineries, 12 OMCs

5. Proven Reserves Oil (million barrels) Gas (trillion cubic feet) Coal (million tonnes) Discovered9655415,000 Produced65926200 Remaining3062814,800 Annual Production 241.53.5 Reserves to Production (R/P) Ratio 13194200

6. 6 SSGC LNG (2012): 0.75 Bcfd Private LNG (2012): 1.0 Bcfd TAPI (2015): 1.35 Bcfd Conventional New Discoveries Existing Gas Fields IP (2014): 0.75 Bcfd Anticipated Constrained Demand Gas Shortfall Mitigation

7. Gas Import Pipeline Projects TAPI HIGHLIGHTS  Gas Source in Turkmenistan South Yolotan / Osman  Length: Turkmen to Indian Border 1,680 km  Total Gas Volume 3.20 bcfd  Gas Volume for Pakistan 1.35 bcfd  First Gas Flow 2015 IP HIGHLIGHTS  Pakistan Pipeline Segment 785 km  Gas Volume 0.75 bcfd  First Gas Flow 2014

8. 39 exploration licenses granted in 2009-10 New bidding round to be done jointly with Provincial Governments Policies for non-conventional gas resources:  Tight Gas (est. 4 tcf)  Shale Gas (est. 10 tcf)  Low Btu Gas (est. 4 tcf)  Stranded Gas through virtual pipeline (est. 0.5 tcf) Exploration for New Resources

9. No government subsidies on natural gas LPG being introduced as formal auto fuel LPG-Air mix being used as town gas as an alternate to natural gas in towns and villages Syngas to be used as natural gas substitute Gas line losses to be controlled through capital investment in transmission and distribution systems Gas Sector Reforms

10. Governmental and cross-subsidies on oil products removed Pricing, import and movement of oil products deregulated Barriers to new oil marketing companies minimized New incentives for establishing oil storages Product storage increased to 53 days cover Ethanol (E10) introduced as motor fuel Oil Sector Reforms

11. Coal is a Provincial subject Huge deposits of lignite coal discovered in Sindh at Thar Several private companies interested in coal mining and power generation Coal bed methane potential estimated as 2 tcf Pilot project for coal gasification in hand Coal Sector Reforms

12. Thank You