Media in recent weeks have been abuzz with news that Pakistan is sitting on massive oil reserves both onshore and offshore. This excitement is largely attributable to the USA’s recent interest in oil exploration in Pakistan, triggered by U.S. President Donald Trump proclaiming a new trade agreement between the U.S. and Pakistan. Under this deal, the U.S. will assist Pakistan in developing its “massive oil reserves”.

The situation is akin to a poor man waking up one morning to be told that he has won a big lottery prize. It gets more interesting when the poor
man, apparently confused, asks himself when he bought one.

Pakistan must not forget that it runs the risk of alienating its all-weather friend China, which has already invested heavily in CPEC and the security threat posed to likely areas of exploration.

The situation at hand needs an insight into the history of exploratory efforts for oil and gas in Pakistan, its outcomes, and where we stand as of now. Historically, oil and gas exploration efforts are as old as Pakistan itself. At independence, the oil and gas sector was underdeveloped, with Burmah Oil showing early interest in exploring regions like Northern Punjab. It was not oil, but the discovery of the Sui gas field in Baluchistan in 1952 by Pakistan Petroleum Ltd. (PPL), which was considered a massive breakthrough. Oil & Gas Development Corporation (OGDC) was established in 1961 to take........

© Daily Times