Pakistan to Expand Oil Investments
What amazes me is that most of the investments will be off the coast of Pakistan (not sure I knew they had a coast). This is very bullish for a deepwater driller like Atwoods (ATW) and possible a infrastructure builder like Foster Wheeler. It isn't really clear where the money will be spent or whether they'll even get the outside investments considering the lack of stability in the country. Regardless, its just another example combined with the likes of Iraq of the pent up demand.
- The majority of the investment in rigs and equipment will be directed off the country’s southern coast, said Asim Hussain, adviser to the prime minister on the oil industry. That compares with $1 billion expected this year, he said.
- Developing offshore fields reduces the risk of attacks by militants that have hampered oil and gas exploration, increasing Pakistan’s reliance on imported fuels. U.K. explorer Tullow Oil Plc stopped operating in the northwest tribal region in March where the Pakistan military is fighting Taliban insurgents.
- Pakistan wants to boost domestic fuel production to reduce its oil import bill and meet energy demand, which is growing 5 percent annually. Gas production of 4.1 billion cubic feet a day meets about 60 percent of demand.