New Delhi, Aug 18 (IANS) Balochistan could play a crucial role in reversing Pakistan’s declining domestic oil and gas production if security conditions improve and the province is opened up for greater exploration, a report has said.
According to an analysis highlighting the region’s vast untapped hydrocarbon potential cited by The Express Tribune noted that Balochistan supplied around 82 per cent of Pakistan’s natural gas requirements in 1982, with the Dera Bugti district alone accounting for a major share through gas fields including Sui, Loti, Pirkoh, Uch and Zin.
The province’s contribution stood at around 55 per cent in 1995 and 25 per cent in 2005, while it continues to account for nearly 20 per cent of the country’s natural gas supply.
However, growing security challenges over the past two decades have affected exploration activities and efforts to replace depleting reserves.
The analysis pointed out that only around 6 per cent of the nearly 1,250 exploratory wells drilled across Pakistan have been drilled in Balochistan, leaving about 90 per cent of the province largely unexplored.
It said a peaceful environment in Balochistan could trigger a fresh wave of exploration, potentially helping Pakistan not only arrest but also reverse the decline in indigenous oil and gas production.
The analysis also stressed the importance of community engagement in improving security and enabling energy companies to operate successfully in resource-rich areas. It identified two key components of community engagement, with the first being the state’s responsibility to provide basic services such as healthcare, education and employment.
Failure to meet these responsibilities can create despondency and alienation among local populations, making communities vulnerable to exploitation by negative forces. The analysis argued that this dynamic is among the factors contributing to challenges in Balochistan and Khyber-Pakhtunkhwa.
Oil and gas producing districts were described as particularly visible examples of the gap between resource generation and local development. Despite tens of billions of rupees being collected annually from exploration and production companies through royalties, along with production bonuses and taxes, many of these areas remain significantly underdeveloped, the report noted.
–IANS
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