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‘We’ve carved out a beauty!’
Oil prices dip on profit-taking, fiscal cliff deal concerns SINGAPORE AGENCIES
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New petroleum policy touted to substantially facilitate investors ISLAMABAD
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ONLINE
IL and Gas Development Company Limited (OGDCL) in joint venture with Government holding Pvt Ltd (GHPL) has discovered gas reservoirs bearing zone from its well Zin SML-1 located in District Dera Bugti. MD OGDCL Masood Siddique informed this to Dr. Asim Hussain Advisor to the Prime Minister on Petroleum and Natural Resources during a meeting here on
Friday. Dr. Asim Hussain while congratulating the OGDCL and GHPL said that the Government is providing substantial incentives to the oil and gas exploration companies. He further said that successful road shows were held in USA and UK to attract foreign oil and gas exploration companies. Dr. Asim Hussain emphasized on balancing the current energy mix of Pakistan, which is heavily dependent on Natural Gas. It is worth mentioning that the Zin SML-I well was drilled down to depth of 1050 meters targeting to test the potential of Sui Main Limestone formation. The target
zone age has tested 8.05 MMSCFD gas through 128”/ 64” choke. Advisor on Petroleum expressed confidence that this discovery will add to the hydrocarbon reserves base of the Joint Venture Partners, brining significant earnings for the country. MD OGDCL briefed Dr. Asim Hussain that preliminary assessment shows an estimated reserves in place of about 1.06 TCF, which would be confirmed by further appraisal wells. It is of low calorific value gas but with the right technology, can be enhanced to better quality gas.
PSO-PNSC partnership to help save $25 million annually ISLAMABAD AGENCIES
Pakistan State Oil (PSO) has recently signed a Contract of Affreightment (CoA) with the Pakistan National Corporation (PNSC) to transport furnace oil from foreign ports to Pakistan’s shores. “Already this CoA is bearing fruit and expected savings in one year are estimated to be approximately USD 25 million, which shall translate into savings of USD 125 million in five years time span,” said a PSO spokesperson in a statement. She said that the PSO, being the nation’s largest energy company, had already implemented the deci-
sions of the government in letter and spirit. “The PSO is proud to be the first national company to start bringing in imported POL products through the Pakistan National Shipping Corporation (PNSC).” This has been done in light of the directives of the Economic Coordination Committee (ECC), which clearly state that all government organizations should designate the national shipping line i.e. PNSC as their shipping partner of choice, she added. The spokesperson said that from March 2013, the company would start importing Motor Gasoline through PNSC on FOB basis, saving another USD 10 million annually and in next five years estimated sav-
ings due to this arrangement were expected to be USD 50 million. The PSO’s partnership with the PNSC shall result in total savings of approximately USD 175 million over a time period of five years, she said. She said this partnership between two national companies would not only save precious foreign exchange as outlined above, but would also help in creating employment opportunities in the oil shipping business. “Committed to providing quality products and customer services, the PSO, the national energy giant, remains committed to providing the best for the public at large,” she observed.
Oil prices fell in Asia on Friday, with traders taking profits after a recent rally and as US politicians continue to wrangle over a deal to avert the fiscal cliff, analysts said. New York’s main contract, light sweet crude for delivery in February fell 70 cents to $89.43 a barrel and Brent North Sea crude for February dropped 45 cents to $109.75. “After a big rally in price over the last few days people are happy to exit and reap a form of profit while taking risk off the table,” Jason Hughes, the head of premium client management at IG Markets Singapore told AFP. “We are also seeing a more cautious approach in Asia just in case US politicians don’t come to a resolution to avoid the fiscal cliff.” Crude prices rose earlier in the week on a sharper-thanexpected fall in US crude inventories as lawmakers appeared to make headway on a deal to avert the huge tax hikes and spending cuts due to take effect at the start of January. But talks appeared to hit an impasse when top Republican John Boehner pressed ahead with a controversial “Plan B” that extends tax breaks for everyone earning less than $1 million per year. US President Barack Obama, however, has said he is willing to go no higher than $400,000. Boehner, who is Speaker of the Republican-controlled House of Representatives, on Thursday scrapped a vote on the plan as he acknowledged that he did not have sufficient support even from within his own party.
Indo-Pak entrepreneurs banking on each other Businessmen on either side of the Indo-Pak border want opening of banks, firms to enhance trade KARACHI STAFF REPORT
The traders and businessmen living across the border want the governments of India and Pakistan to accelerate the opening process of the banks and trade related companies on each other’s territory to give a sense of confidence to traders of the two countries. “We would require presence of local banks on both the sides to give requisite confidence to importers and exporters,” Rafeeque Ahmed Meccam, president Federation of Indian Export Organizations (FIEO), told opening ceremony of the India Expo 2012 Friday. Held here at Expo Centre by the FIEO in collaboration with Karachi Chamber of Commerce and Industry (KCCI), the exhibition was attended among other by Siraj Kassam Teli, chairman Businessmen Group and former president KCCI, as a chief guest. “I would take this opportunity to request the concerned agencies to expedite the process of opening of branches of Pakistan banks in India and Indian banks in Pakistan,” he said. He said it was quite ironical that all South East Asian economies were striking FTAs with nations across Pacific and Atlantic but not amongst themselves. Improved bilateral ties between India and Pakistan would give the necessary oxygen to South Asia Free Trade Zone which would open vistas of opportunities for countries of the region, he said. The FIEO president said to enhance Indo-Pak bilateral trade, India Expo 2012 was only beginning of a long journey between FIEO and KCCI. He said he would like to reciprocate to nice gesture of Pakistani side by extending similar privilege to them in India. He apprised that FIEO was an apex trade
promotion body set up by the Ministry of Commerce to promote international trade having more than 14 offices in India and organizes more than 50 international exhibitions across the globe. FIEO board comprises Export Promotion Councils and Commodity Boards and represents in various committees of the Government in their decision making. The FIEO president said India–Pakistan bilateral trade for the year 2011-12 was estimated at $ 2 billion. The balance of trade is favourable for the Indian side with $ 1.54 billion exports and imports at $ 400 million. The recent official figure between AprilOctober, 2012 places exports at $ 834 million, exhibiting a growth of about 1pc while imports during the same period increased to $ 333 million, showing a jump of 42pc from the corresponding period in 2011. “We are looking forward for narrowing trade deficit with Pakistan,” he said adding “We are equally eager to increase our imports for that healthy balance of trade result in winwin situation for both the countries.” The President FIEO stressed upon the need to diversify the trade from both the sides. India’s exports to Pakistan comprise 8-9 major products which contribute approximately 90% of the total export. The main products exported from India to Pakistan are polymers, industrial chemicals, machinery, polyester fabric and yarn. Capital goods are the strength of India, and Pakistan is importing it from other countries, India should exploit this opportunity. Most of the items in India are expensive in comparison to Pakistan so cheaper items can be sourced from Pakistan to avoid expensive imports from other countries. Both countries should try and explore to create synergies and not get overly competitive.
He highlighted that the infrastructure issues are hindering the growth of the trade between the two countries. The land route is most competitive as carrying a container through Wagah costs $ 391 while the same through Mumbai-Dubai-Karachi cost over $ 1000. “We need to provide better infrastructure to facilitate trade through the closest route,” he said. He opined that multiple city and multiple entry visa regime would be introduced from January, 2013 which would be a big boost for
bilateral trade. Ajay Sahai, Director General and CEO of FIEO, proposed that India and Pakistan should give preference to companies in each other’s countries for exports and imports if products can be supplied at competitive prices. For example sugar can be exported from Pakistan to India which would help in softening sugar prices in the country while petroleum exporters from India could reduce the price of petroleum products in Pakistan by $ 14 per barrel giving a saving close to $ 2 billion
for its economy. On the occasion, Siraj Kassam Teli, chairman Businessmen Group and former president KCCI, stressed the need for creating new Indo-Pak trade synergies for regional economic integration. Teli said once Indo-Pak business executed in a real sense, both the countries would be not dependent on other countries for economic cooperation. Indo-Pak trade nexus would also activate intra-SAARC trade.
Saturday, 22 December, 2012