PESHAWAR: The public sector Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) on Wednesday signed an agreement with a consortium of companies for oil and gas exploration in Miran Block of the North Waziristan tribal district.

The agreement signing ceremony took place at the Khyber Pakhtunkhwa House in Islamabad where Chief Minister Ali Amin Khan Gandapur was present as the chief guest.

The agreement was signedby the representatives of KPOGCL and a consortium comprising Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Government Holdings Private Limited, according to an official statement issued by the Chief Minister`s Secretariat.

It added that under the terms of the deal, KPOGCL would hold the largest stake of 51 per cent shares, while the rest would be owned by the OGDCL-led consortium.

Similarly, KPOGCL will also receive 51 per cent of the profits generated from the project.

The event was also attended by special assistant to the chief minister on energy and power Tariq Sadozai along with senior officials of the petroleum ministry, energy department, and partner companies.The statement read that the consortium is set to invest Rs20 billion in the exploration project over the next three years, with the entire investment coming from OGDCL and other consortium partners.

`In case of any financial losses, the provincial government will bear no financial burden,` it read, adding that during the briefing at the ceremony, officials highlighted strong prospects of discovering significant oil and gas reserves in the Miran Block.

While talking on the occasion, Mr Gandapur emphasised the strategic importance of the exploration deal, saying it is not just a milestone for KP but for the entire country. He expressed optimism that the discovery of oil and gas reserves in the Miran Block would help address the energy crisis in the country.Mr Gandapur also congratulated KPOGCL, OGDCL and other consortium partners for the agreement, which, he said, marked the beginning of a major success.

`The project will usher in a new era of development and prosperity in the region, creating employment opportunities and contributing to the eradication of terrorism,` he said.

The chief minister, while highlighting the untapped potential of KP`s natural resources, criticised past policies for failing to fully harness these assets.

He reaffirmed KP`s crucial role in meeting Pakistan`s energy needs, saying the province contributed 42 per cent of the country`s total crude oil production, 13 per cent of its natural gas output, and 40 per cent of its LPG production.`Despite having vast hydropower resources, we still rely on imported furnace oil and LNG for power generation,` he said, lamenting the country`s heavy debt burden of Rs76 trillion.

Mr Gandapur called for a collective strategy to overcome financial challenges.

He said to expand exploration efforts in the province, his government had allocated Rs3 billion in its budget for oil and gas discoveries.

The chief minister said the government would provide full security to the companies operating in the Miran Block, ensuring smooth execution of the project.

He said the agreement marked a significant step forward for the province in leveraging its natural resources to drive economic growth and energy self-sufficiency for the country.