ExxonMobil, the U.S multinational oil and gas company which is partially responsible for offshore drilling in Pakistan is about to hit huge oil reserves near the Pakistan-Iran Border.
According to the company, the oil reserves are so big that it could help make Pakistan the 6th largest oil producer in the world, ahead of Kuwait.
The announcement was made by Abdullah Hussain Haroon, Pakistan’s caretaker minister for maritime affairs and foreign affairs today.
ExxonMobile has so far drilled up to 5,000 meters in a location that is close to the Iranian border. The company is very optimistic about this oil discovery.
Kuwait’s oil reserves
Kuwait’s oil reserves currently make up 8.4 percent of the oil reserves in the world. The country also claims to hold about 101.50 billion barrels of oil including half of five billion barrels inside the Saudi-Kuwaiti neutral zone which the country shares with neighbor Saudi Arabia.
Current estimates suggest that 81.89 percent of the world’s proven oil reserves are present in the OPEC member countries with the bulk of it in the Middle East that amounts to 65.36 percent of OPEC total.
What will Pakistan do next
Pakistan currently meets only 15 percent of its domestic petroleum needs with crude oil production of around 22 million tons; the other 85 percent is met through imports. The country facing huge current account deficit of up to $18 billion is spending a substantial amount of foreign exchange reserves on import of oil. The import bill of Pakistan rose by to $12.928 billion in the July-May 2017-18 period of the last fiscal year.
According to the foreign minister of Pakistan, the government has already taken an undertaking from ExxonMobil to set up a generation complex worth $10 billion.
The government is also encouraging foreign investment in the country in this regard.