Pak, Russia sign Oil, Gas MoU
President urges to invest in oil, gas sector
By Our Special Correspondent

RAWALPINDI—President general Pervez Musharraf has observed Pakistan has vast potential for investment in the sphere of oil and gas.
He said this during his meeting with A.B Mullar, chairman of Russian company Gazprom here Friday.
They discussed development and operations of trans-national gas pipelines during the meeting, which also covered cooperation in gas research, development of gas fields, usage of natural gas as fuel for converted diesel engines, development and operations of underground gas storage system and training in Russia for Pakistani officials of oil and gas sector.
Pakistan, he underlined, is strategically located to serve as energy corridor for Central Asia, South Asia, the Gulf region and the Western parts of China.
“Pakistan intends to import gas from regional countries to meet its rapidly increasing industrial requirements as we are resolved to sustain higher economic growth in the years ahead,” he stated. President Musharraf said the country is in the process of looking into various trans-national gas options.
He told Pakistan was contemplating the process of laying of international gas pipeline and a decision would soon be taken in this regard.
Chairman Gazprom thanked the President for the opportunity to call on him and said his company sees Pakistan favorably due to a conducive business climate put in place in recent years. He said Pakistan enjoys a pivotal location as a prospective hub for regional gas supplies and trade.
INP adds: Pakistan and Russian Federation Friday signed a Memorandum of Understanding (MoU) for cooperation in oil and gas sector. The MoU was signed by Secretary Petroleum Ahmad Waqar and Chairman of Russia’s largest gas producing company GAZPROM A.B. Miller here. The ceremony was witnessed by Prime Minister Shaukat Aziz, Minister for Privatisation and Investment Dr. Abdul Hafeez Sheikh, Minister for Petroleum Amanullah Khan Jadoon and Minister of State for Petroleum Muhammad Naseer Mengal. The Russian company would assist Pakistan in research and development of gas fields; use of natural gas as fuel for the converted diesel engines and development and operation of underground gas storage systems.
It would also cooperate in privatization of oil and gas companies in Pakistan; development and operation of trans-national gas pipelines; and training facilities in Russia for Pakistani experts from oil and gas sectors. Talking to the newsmen on the occasion, the prime minister expressed his pleasure that GAZPROM, which has earned a place of prestige in oil and gas sector, had agreed to engage in oil and gas exploration in Pakistan. He said it had been agreed to allocate blocks to the company on fast track basis for exploration of oil and gas. He said the company had also shown interest to take part in the proposed Iran-Pakistan-India gas pipeline project. The Prime Minister said he saw no difficulty in lining up finances for the mega project as companies from Italy and UAE were also interested to invest in it. He said the Russian company would assist Pakistan in storage of gas in depleted fields for use during peak seasons.
Presently, this technology was not available in the country but it was widely in use in Europe and other parts of the world. Referring to his meeting with the Chairman of GAZPROM, who called on him, the prime minister said he briefed him about Pakistan’s 25 year energy policy. Pakistan’s economy, he said, was rapidly growing necessitating the need for more energy to sustain the process. To a question the Prime Minister said Financial Advisor for Iran-Pakistan-India gas pipeline project was being appointed and its feasibility would start soon.