Islamabad: The federal government has announced its decision to set up a ‘Frontier Zone’ for facilitating the exploration and production of hydrocarbons in the areas located close to the Pak-Afghan border called the Durand Line, a news source reported.
The Frontier Zone will be called Zone-I (F) and it will cover areas of ex-FATA, Pishin and Kharan. The mentioned areas, reportedly, contain over 20 trillion cubic feet of hydrocarbons deposits. The well-head price of the Zone-I will be worked out after the Council of Common Interests (CCI) proposes amendments in the Petroleum Policy 2012.
The well-head price is expected to be higher than the existing onshore prices in the country. The per barrel rate of the existing onshore companies range between USD 4.6 to USD 6, while that of Zone-I has been proposed at USD 7 per barrel. The final decision on well-head price has not been taken as of yet.
According to experts, setting up a fresh zone in frontier region is expected to provide better monetary returns and it will offer higher prospects of finding good reserves of hydrocarbon and other minerals.
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