Mari Gas Co. Limited. (Interview)

Article excerpt

An interview with Lt. Gen. Khalid Nawaz Malik (Retd.) M.D.

Q. Would you explain in detail the role of your organization in Pakistan's oil and gas sector?

A. Mari Gas Company is the holder of largest remaining gas reserves in one field. We are presently the third largest natural gas producer in the country. The Company has been the backbone of fertilizer (Urea) industry as it supplies raw material to five major Urea plants and 70% of national Urea production is based on gas supplied by Man. Besides fertilizer, Man contributes in national power production also by supplying almost 20% of its total daily gas production to WAPDA. The Company has been making steady profit and is now contributing over Rs.10 billion annually to the national exchequer in the form of Gas Development Surcharge, Excise Duty, Royalty and Taxes. Recently the Company has been allowed by the Government to undertake petroleum exploration also. This will enable the Company to participate fully in the E&P Sectors and further enhance its role in the national effort to develop this vital Sector.

Q. What do you fee labout the onshore policy of the government and new incentives provided to it and what should be done more for the development of oil and gas sector in the country?

A. In my view the Government fully appreciates the importance of the Oil/Gas Sector and has improved the Petroleum Policies from time to time to provide better terms and a conducive environment to the foreign and local investor. The incentive package offered in the latest Petroleum Policy (2001) is quite attractive. Local companies are also being encouraged to enter this high risk capital intensive field. However, there is a definite need that the policy is implemented in letter and spirit and other confidence building measures are taken to attract the investors. The negative impact of the IPP crisis has to be wiped out through concerted efforts. In addition, improvement has to be brought regarding Pakistan's international image by improvement in our security, procedures, outdated laws, infrastructure etc.

As I said earlier, the present petroleum policy is attractive yet it requires updating of outdated laws and simplification of procedures. This sector needs substantial foreign investment. The law and order situation has to be improved considerably and concrete steps in that direction are being taken by the Government. …