Pakistani energy explorers venturing into insurgency areas

Karachi

PAKISTAN'S state-owned companies are spending record amounts on energy exploration, including in areas more known for separatist insurgency, as old fields start to dry up.

While global producers negotiate on further production cuts, Oil and Gas Development Co, the nation's largest explorer, has more than doubled seismic activity, and Pakistan Petroleum Ltd has almost doubled wells drilled in the past two years as it becomes cheaper after the global crude plunge.

"In exploration, there is absolutely no let up," Zahid Mir, chief executive officer at OGDC, said by email on July 27. "Cost of services has come down. We see an opportunity here to do things a bit cheaply."

The need for greater energy security and to end chronic shortages is key to the re-election prospects of Nawaz Sharif's ruling party ahead of the national poll next year. Mr Sharif stepped down as prime minister after the Supreme Court last month ordered his disqualification from office with a caretaker leader set up until his brother, She…