Pakistan agrees in principle on incentives

Pakistan has agreed in principle to offer an incentive package for oil and gas investment through its Petroleum Policy 2006, to be unveiled in June, according to IHS Energy, which is preparing the policy under contract.

Jan. 26, 2006

By an OGJ correspondent
KARACHI, Jan. 26 -- Pakistan has agreed in principle to offer an incentive package for oil and gas investment through its Petroleum Policy 2006, to be unveiled in June, according to IHS Energy, which is preparing the policy under contract.

Pakistan currently uses a petroleum policy from 2001 with which oil and gas companies long have been dissastisfied because of a cap on local gas prices.

Companies have asked the government to provide guarantees and tax exemptions to accelerate gas production. The government plans to increase gas production to meet energy needs of the growing economy.