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“Missing Strategic Links"
Gawadar Port CPEC, Maritime Industry and Offshore Energy Resources”
By
Muddassar A. Iqbal
B.Sc. (Pak), M.Sc.(UK)
CEng.(UK), CMarEng.(UK), CPEng. (Aust), P.Eng.(Can)
FMAcOBA (Pak), MIMarEST (UK), MIEAust (Aust), MAPEGBC (Can), MPMI (US)
Accelerate Production Growth, Exploit Exploration Opportunities, Maintain Low Cost
Operations, Pursue Selective International Expansion and Implementing International Best Practice, are
the core business strategies of OGDC and there shouldn’t be any disagreements from the conscientious
professionals within national industry. However, after witnessing the Jan 2015 Energy Crises, above
statement raises an eye brow on the foreheads of majority stakeholders with a simple question, starts with
“How”. Probably, because the root cause of the crisis is yet to be revealed, regrettably and a failsafe
mechanism haven't established even after two years of national energy crisis. Our reliability on supply
chain mechanism of oil and gas import is nothing more than a skeletal. PNSC as national shipping
corporation could handle only a marginal, single digits, energy transportation needs. Consequently, our
economy heavily rely on foreign suppliers to fill the huge energy gap.
Trouble with decision makers is that, they are not only proved themselves as
incompetents but also, complacent over the span of decades. Unable to foresee a golden opportunity of
sinking oil prices is understandable but not to do anything is a clear indication of "Compromised
Economic Strategy". No sustainable measures are established to exploit long term benefits from rock
bottom exploration services industry. Seems like, someone is trying to work out things for themselves in
the absence of accountability as well as responsibility. Moreover, aggressively transforming energy and
power sector towards imported LNG, will cost billions of U$D's extra on tax payers' pockets: 15 years
long term contract of 16 B U$D's imported LNG will cost approx. $1.35 B extra every year on this first
LNG Regasification Import project. Two more long term contracts signed in 2016: 16 B U$D's 15 year
long term deal signed in Jul/Aug between PGPL of Pakistan and BW LNG Singapore and 22 B U$D's
LNG deal signed with GEIL/Pak and Qatar Supplier on 17th December, 2016.
Another fine precedent tied to above claims is: Offshore production sharing agreements
with oil majors. Drilling, Exploring and Production agreements signed in 2000’s under the bench mark
“Regulations for Mines & Oilfields and Mineral Development Act” of 1948, amended in 1976. This
benchmark was amended just before most of the current Pakistan’s population was even born. While rest
of the world was smoothly maneuvering from 2nd Technological Revolution to 3rd and now into 4th, our
national champions are still passing a thread from a needle eye and believing it as they are holding the
Tsunami from its Core.
Until n unless, on ground implementations are not wholeheartedly executed by subject
matter competent experts, we’ll never be able to move ahead from deeply piled anchored situation
towards a "touchdown", the sustainable economic growth. Situation is not going to alter, no matter how
astutely we kept sharpening the pencil to draw the strategically developed business patterns on the papers,
presentations or seminars. Effectively execution of such ambitious undertakings must not be
compromised for long term loss making energy projects. Short term patch works cultural phenomenon
must be eliminated from all levels of state business departments.
Source: US Energy Information Administration
Sustainable Development Policy Institute (SDPI) published an analysis report, in 2014
and claims a victorious conquest in the arena as a surviving Gladiator in the absence of any competitor.
Factually, analysis on Pakistan’s Shale Oil & Gas is just like a day dream. Believe, such inadequately
accomplished advisory publications are probably utilized by some decision makers to enhance the patch
work mechanism of trouble shooting their self-created energy crisis & leaving behind the opportunity of
establishing correct mitigation measures for a sustainable long term energy needs.
SDPI advises to Govt. of Pakistan for policy making under the charter-ship of Pakistan
National Conservation Strategy (NCS) along with National Energy Security Plan (NESP). Trust, these
analyses can play a significant role in Pakistan's socio-economic development planning within the context
of a national environmental plan and adjoining to numerous goals of Vision 2025 if, portrays the
complete picture.
Publication only covers the Oil & Gas reserves within onshore area of 665,500 Sq.
Km and there's absolutely no data or analysis shared for the mentioned 134,600 Sq. Km of Offshore. It’s
approx. 16.82 % of Total Sedimentary Basin Area (TSBA), which is 800,100 Sq. Km. Pakistan's coast
line is 1,046 Km[3]
and in recent past, UN extended our Maritime Territorial Continental Shelf to further
370 Km from coast line, stretching offshore territorial boundary to 387,020 Sq. Km. This expansion
resulting the total country wide sedimentary basins to 1,052,520 Sq. Km. Proportionately, potential
offshore exploration zones are broadened to approx. 36.77 % of country’s basins. It’s more than doubled
of initial calculated digits.
During 2013, no. of global discoveries (as shown in the attached Clarkson's snapshots)
made in the offshore fields were nearly matching the numbers for onshore as per renowned
research sources. Ignoring the significance of Marine & Offshore related Oil and Gas Industry will be as
naïve as one can imagine of baby-sitting snake on a treasure. Offshore Oil & Gas Exploitation is
neglected in Pakistan since decades. If advisors will continuously ignore such economic boosting
Global Overview of Oil Discoveries by Size & Water Depth, mmbbl
opportunity then the blame is equally spread across the decision makers who sit on high profile positions
while twiddling thumbs.
Global Overview of Oil Discoveries by Size & Distance to shore, mmbbl
By the virtue of experience, couple of cohorts within their capacity must have grasped the
ground realities of supply chain & demand of energy rich hydrocarbons from onshore production fields,
however, decision making hierarchy is not only out of focus but also no ware near to even understand the
importance of wide spread oil & gas rich field blocks within offshore basins. These offshore blocks are
spread over 1,046 Km of coast line & hundreds of nautical miles within ocean from edge of shores. It’s a
dilemma that GHPL, MPNR, OGDCL and PPEPDR proudly claim’s to narrate the decades of glorious
wide span bandwidth experience in explorations and crowned to be the champions of optimized
productions but ignorant of Pakistan’s most valuable natural resources hidden in shallow to deep water oil
rich reservoirs.
Comparatively, there are no sustainable policies established for our offshore field
developments. Even the smallest energy exporting countries like Qatar, Oman, Trinidad or Vietnam has
nurtured their offshore reservoirs with enhanced production. These countries also understood the role of
Pakistan - Offshore Coastal Zones Map
maritime logistics for energy transfer and maximize the impacts to grow their economies. We are
spending Billions of $ to develop Gawadar Port but thinking unilaterally, without realizing its core
economic impacts. Maximizing the deep sea port utilization in embracing the offshore industry, adding a
National Container Liner Shipping Company and Bunkering (Marine Diesel, H.F.O, LNG) can add
Billions of $'s in National Economy in addition to thousands of jobs for locals. Singapore sold 65 Million
Metric Tons of Bunker Fuels to ships in 2015, without producing a single drop of oil and gas. There’s a
dire need of solution based strategy within our rank and files to exploit such God Gifted Opportunities.
Pakistan’s potential is much larger than it appears on the global map: we just need to focus on fine tuning
the strategic vision and to analyze it with intelligence. I can visualize it and you can do the same !
“Difficulties mastered are opportunities won” - Winston Churchill

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Missing Strategic Links - Gawadar Port CPEC, Maritime Industry and Offshore Energy Resources

  • 1. “Missing Strategic Links" Gawadar Port CPEC, Maritime Industry and Offshore Energy Resources” By Muddassar A. Iqbal B.Sc. (Pak), M.Sc.(UK) CEng.(UK), CMarEng.(UK), CPEng. (Aust), P.Eng.(Can) FMAcOBA (Pak), MIMarEST (UK), MIEAust (Aust), MAPEGBC (Can), MPMI (US) Accelerate Production Growth, Exploit Exploration Opportunities, Maintain Low Cost Operations, Pursue Selective International Expansion and Implementing International Best Practice, are the core business strategies of OGDC and there shouldn’t be any disagreements from the conscientious professionals within national industry. However, after witnessing the Jan 2015 Energy Crises, above statement raises an eye brow on the foreheads of majority stakeholders with a simple question, starts with “How”. Probably, because the root cause of the crisis is yet to be revealed, regrettably and a failsafe mechanism haven't established even after two years of national energy crisis. Our reliability on supply chain mechanism of oil and gas import is nothing more than a skeletal. PNSC as national shipping corporation could handle only a marginal, single digits, energy transportation needs. Consequently, our economy heavily rely on foreign suppliers to fill the huge energy gap. Trouble with decision makers is that, they are not only proved themselves as incompetents but also, complacent over the span of decades. Unable to foresee a golden opportunity of sinking oil prices is understandable but not to do anything is a clear indication of "Compromised Economic Strategy". No sustainable measures are established to exploit long term benefits from rock bottom exploration services industry. Seems like, someone is trying to work out things for themselves in the absence of accountability as well as responsibility. Moreover, aggressively transforming energy and power sector towards imported LNG, will cost billions of U$D's extra on tax payers' pockets: 15 years long term contract of 16 B U$D's imported LNG will cost approx. $1.35 B extra every year on this first LNG Regasification Import project. Two more long term contracts signed in 2016: 16 B U$D's 15 year long term deal signed in Jul/Aug between PGPL of Pakistan and BW LNG Singapore and 22 B U$D's LNG deal signed with GEIL/Pak and Qatar Supplier on 17th December, 2016. Another fine precedent tied to above claims is: Offshore production sharing agreements with oil majors. Drilling, Exploring and Production agreements signed in 2000’s under the bench mark “Regulations for Mines & Oilfields and Mineral Development Act” of 1948, amended in 1976. This benchmark was amended just before most of the current Pakistan’s population was even born. While rest of the world was smoothly maneuvering from 2nd Technological Revolution to 3rd and now into 4th, our
  • 2. national champions are still passing a thread from a needle eye and believing it as they are holding the Tsunami from its Core. Until n unless, on ground implementations are not wholeheartedly executed by subject matter competent experts, we’ll never be able to move ahead from deeply piled anchored situation towards a "touchdown", the sustainable economic growth. Situation is not going to alter, no matter how astutely we kept sharpening the pencil to draw the strategically developed business patterns on the papers, presentations or seminars. Effectively execution of such ambitious undertakings must not be compromised for long term loss making energy projects. Short term patch works cultural phenomenon must be eliminated from all levels of state business departments. Source: US Energy Information Administration Sustainable Development Policy Institute (SDPI) published an analysis report, in 2014 and claims a victorious conquest in the arena as a surviving Gladiator in the absence of any competitor. Factually, analysis on Pakistan’s Shale Oil & Gas is just like a day dream. Believe, such inadequately accomplished advisory publications are probably utilized by some decision makers to enhance the patch work mechanism of trouble shooting their self-created energy crisis & leaving behind the opportunity of establishing correct mitigation measures for a sustainable long term energy needs.
  • 3. SDPI advises to Govt. of Pakistan for policy making under the charter-ship of Pakistan National Conservation Strategy (NCS) along with National Energy Security Plan (NESP). Trust, these analyses can play a significant role in Pakistan's socio-economic development planning within the context of a national environmental plan and adjoining to numerous goals of Vision 2025 if, portrays the complete picture. Publication only covers the Oil & Gas reserves within onshore area of 665,500 Sq. Km and there's absolutely no data or analysis shared for the mentioned 134,600 Sq. Km of Offshore. It’s approx. 16.82 % of Total Sedimentary Basin Area (TSBA), which is 800,100 Sq. Km. Pakistan's coast line is 1,046 Km[3] and in recent past, UN extended our Maritime Territorial Continental Shelf to further 370 Km from coast line, stretching offshore territorial boundary to 387,020 Sq. Km. This expansion resulting the total country wide sedimentary basins to 1,052,520 Sq. Km. Proportionately, potential offshore exploration zones are broadened to approx. 36.77 % of country’s basins. It’s more than doubled of initial calculated digits. During 2013, no. of global discoveries (as shown in the attached Clarkson's snapshots) made in the offshore fields were nearly matching the numbers for onshore as per renowned research sources. Ignoring the significance of Marine & Offshore related Oil and Gas Industry will be as naïve as one can imagine of baby-sitting snake on a treasure. Offshore Oil & Gas Exploitation is neglected in Pakistan since decades. If advisors will continuously ignore such economic boosting Global Overview of Oil Discoveries by Size & Water Depth, mmbbl
  • 4. opportunity then the blame is equally spread across the decision makers who sit on high profile positions while twiddling thumbs. Global Overview of Oil Discoveries by Size & Distance to shore, mmbbl By the virtue of experience, couple of cohorts within their capacity must have grasped the ground realities of supply chain & demand of energy rich hydrocarbons from onshore production fields, however, decision making hierarchy is not only out of focus but also no ware near to even understand the importance of wide spread oil & gas rich field blocks within offshore basins. These offshore blocks are spread over 1,046 Km of coast line & hundreds of nautical miles within ocean from edge of shores. It’s a dilemma that GHPL, MPNR, OGDCL and PPEPDR proudly claim’s to narrate the decades of glorious wide span bandwidth experience in explorations and crowned to be the champions of optimized productions but ignorant of Pakistan’s most valuable natural resources hidden in shallow to deep water oil rich reservoirs. Comparatively, there are no sustainable policies established for our offshore field developments. Even the smallest energy exporting countries like Qatar, Oman, Trinidad or Vietnam has nurtured their offshore reservoirs with enhanced production. These countries also understood the role of
  • 5. Pakistan - Offshore Coastal Zones Map maritime logistics for energy transfer and maximize the impacts to grow their economies. We are spending Billions of $ to develop Gawadar Port but thinking unilaterally, without realizing its core economic impacts. Maximizing the deep sea port utilization in embracing the offshore industry, adding a National Container Liner Shipping Company and Bunkering (Marine Diesel, H.F.O, LNG) can add Billions of $'s in National Economy in addition to thousands of jobs for locals. Singapore sold 65 Million Metric Tons of Bunker Fuels to ships in 2015, without producing a single drop of oil and gas. There’s a dire need of solution based strategy within our rank and files to exploit such God Gifted Opportunities. Pakistan’s potential is much larger than it appears on the global map: we just need to focus on fine tuning the strategic vision and to analyze it with intelligence. I can visualize it and you can do the same ! “Difficulties mastered are opportunities won” - Winston Churchill