Islamabad:
As Pakistan celebrates US President Donald Trump’s announcement of joint development of Pakistan’s oil reserves, Washington has not signaled whether its energy giant ExxonMobil will make a comeback to participate in offering offshore oil and gas fields.
Although Pakistan and the United States have a long history of the relationship, US oil and gas companies have not been very active here. Pakistan’s two provinces-khyber-Pakhtunkhwa and Balochistan-are rich in oil and gas deposits, but security challenges have hindered progress with potential projects.
Distrust between Pakistan and the United States still prevails as conspiracy theories suggest that offshore fields in Karachi -havwaters have significant hydrocarbon reserves.
Many people believe that Pakistan does not allow ExxonMobil to go further beyond the sea for offshore investigation during the tenure of Pakistan Tehreek-E-Insaf (PTI) government. Reports show that the US company sought access to a further area within the Kekra field to assess the prospect of finding oil and gas, but Pakistan expressed hesitation.
Now the US president has entered into a new agreement on the development of oil and gas field in Pakistan. It comes at a time when Islamabad is inviting foreign companies to bid on offshore fields that open on September 30.
Background discussions with officials revealed that the United States had scores of private energy companies, but there were no signals that one would participate in field development. Pakistan expects ExxonMobil to come back to a new offshore processing venture.
However, Pakistani officials point out that Trump’s message is just a commitment that US energy companies will come to Pakistan. “It will be clear in the coming days when the two countries will start negotiations at official levels by including energy companies to look for opportunities for joint ventures,” noted an official.
This is encouraging news as the United States has been inclined to India in the past. Even Indian oil and gas companies had formed joint ventures with US companies.
Earlier, Washington even refused to export floating natural gas (LNG) to Pakistan and showed interest in dealing with Delhi. At that time, an American embassy employee said the media that Indian companies had entered into joint ventures with US companies; Therefore, the doors to LNG trade were open to India, not Pakistan.
Of late, the US president has hinted at US companies’ investment in Pakistan’s mineral sector. US Exim Bank is one of the financiers interested in pumping capital into Reko Diq Copper and Gold Mining Project.
American companies are also eager to create joint ventures with Pakistani companies in the mineral sector, which has estimated the potential of $ 8 trillion. Experts call it a new opening in the bilateral relationship between Pakistan and the United States that will clear the way for remarkable investments.
